Spain and Turkey depress Cimpor ’s results

Spain and Turkey depress Cimpor ’s results
Published: 19 March 2009

Helped by the initial consolidation of India and an additional six months from China, Cimpor’s turnover advanced by 6.2% last year to €2,088.9m, though the EBITDA was off by 3.4% to €586.3m.  The trading profit declined by 10.4% to €392.6m and after an almost tripled net financial charge of €134.4m the pre-tax profit fell by 33.8% to €258.3m.  Thanks to lower tax and minorities charges, the net attributable profit was a more modest 27.8% lower at €219.4m.  Net debt at the end of the year was 36.0% higher at €1,933.2m to give a gearing level of 109.2%, up from 74.8% a year earlier. 

Group cement and clinker shipments were 9.2% higher at 26.81Mt, with lower volumes in Spain, Portugal and Turkey being more than compensated for by higher volumes in China, Egypt, South Africa and elsewhere.  Turnover from trading and shipping increased by 33.8% to €45.6m and its profit contribution was 18.2% ahead at €7.5m.   

The Portuguese turnover declined by 3.1% to €461.4m but the EBITDA was just 0.8% lower at €171.9m.   Cement and clinker sales by the Portuguese plants declined by 8.1% to 5.34m tonnes.  Sales of aggregates into the Portuguese market, however, did increase by 7.2% to 7.40m tonnes, but ready-mixed concrete deliveries fell by 9.6% to 2.89m m³.  In Spain, the sharp reversal in building activity led to a 23.8% reduction in turnover to €357.8m and the EBITDA fell by 39.8% to €82.9m.   Spanish cement shipments dropped by 21.3% to 3.19Mt, but, boosted by acquisitions, sales of aggregates were just 0.7% lower at 5.26Mt.

With Egypt back to full capacity and domestic demand being strong, cement deliveries rose by 13.4% to 3.20m tonnes, overtaking Spain for the first time.  With strong pricing, in part reflecting higher gas costs, turnover rose by 37.5% to  €161.2m and the EBITDA advanced by 24.9% to €73.2m and the margins remained the highest in the group at 48.6%.  In Morocco, cement deliveries were 2.1% higher at 1.15m tonnes, with turnover improving by 10.4% to €88.8m and the EBITDA rose by 16.3% to €41m.   Tunisian volumes were 4.1% ahead at 1.52Mt, but the EBITDA was down by 10.1% to €17m on a turnover that was 7.2% higher at  €64m.  Turkey contributed for a full year, compared with only nine months in 2007, but the weak pricing in an over-supplied market led to a 4.2% reduction in turnover to €156.1m and the EBITDA dropped by 59.5% to €15.8m and the cement volume declined by 2.5% to 2.25Mt.  Helped by the additional three months of trading, aggregates shipments rose by 17.8% to 2.29Mt and ready-mixed concrete deliveries by 38.4% to 1.36m m³.

Improving cement prices in Brazil saw turnover there rise by 19.2% to €401.3m and the EBITDA by 25.5% to €102.3m, with cement shipments rising by 7.8% to 4.65Mt and ready-mixed deliveries by 24.6% to 1.24Mm³.  South African cement volumes increased by 13.2% to 1.64m tonnes, with the turnover being 6.2% higher at €136.0m and the EBITDA improving by 7.3% to €46.2m.  In Mozambique, the cement volume rose by 11.8% to 0.74Mt and the turnover by 28.8% to €77.4m, while the EBITDA advanced by a more modest 10.4% to €13.6m.  The Cape Verde Islands continued to advance strongly, with the cement volume rising by a further 18.7% to 0.28m tonnes and the turnover increased by 38.1% to €42.1m and the EBITDA by 42.2% to €4.2m.