Portugal BPI to revise projections on Semapa after 1Q08 results

Portugal BPI to revise projections on Semapa after 1Q08 results
Published: 06 May 2008

Portuguese investment bank BPI will reconsider its estimates and expectations about local construction group Semapa, after the presentation of the first quarter 2008 earnings results, BPI informed on May 2.
The results posted on April 30, 2008 will have a negative impact on the share performance of the company, according to the investment institution. Semapa’s profit dropped by 48 per cent YoY to EUR24.4m in the first three months of 2008. The net profit before minority interests stood at EUR33.3m in the period.
These results were slightly below the preliminary expectations of the market analysts, BPI reminded. The investment bank underlined that the positive contribution of the holding company’s cement producer Secil was offset by the low profitability of paper and paper pulp maker Portucel. The bad performance of Portucel led to a decline in the projected earnings before interest, tax, depreciation and amortisation (EBITDA) margin.
The good performance of Secil, in turn, reflected higher sales, a rise in the market share and higher prices of the cement, which compensated for the weak consumption in Portugal.
As a result, BPI will revise downwards its projections on Semapa. The bank currently has a "buy" recommendation on the stock of Semapa with a price target of 14.40 euro ($22.31) per share.