Initial Turkish and Chinese contributions boost Cimpor

Initial Turkish and Chinese contributions boost Cimpor
Published: 28 March 2008

Helped by the initial consolidation of Turkey and China, Cimpor increased turnover by 20.0% last year to EUR1,966.1m and the EBITDA emerged 7.8% higher at EUR607.0m. The trading profit was 7.4% ahead at EUR438.1m and a 13.5% increase in the net financial charge reduced the rise in the pre-tax profit to 6.7% to EUR390.1m.  After higher tax and minorities charges, the net attributable profit emerged 4.2% up at EUR304.1m.  Net debt at the end of the year was 51.7% higher at EUR1,421.1m to give a gearing level of 74.8% compared with 56.7% a year earlier.
 
Group cement and clinker shipments were 20.1% higher at 24.55m tonnes, while aggregates deliveries increased by 17.1% to 15.2Mt and ready-mixed concrete shipments rose by 20.8% to 8.66Mm³.  Turnover from trading and shipping declined by 22.8% to
EUR34.1m and its profit contribution was down by 32.2% to EUR6.3m.  Following the acquisition of Shree Digvijay Cement in India earlier this year, Cimpor currently has an annual cement capacity of 29.5Mt, using own clinker.
 
The Portuguese turnover improved by 2.8% to €475.9m, while the EBITDA eased by 0.7% to
EUR172.7m.   In spite of the continued depressed state of the Portuguese construction industry, domestic cement volumes, after years of decline, did show an improvement. This, in combination with further increases in export shipments led to a 4.8% increase in cement and clinker sales to 6.13Mt.    In Spain, expansion of the downstream activities and higher cement prices led to a 9.9% increase in turnover to EUR469.6m, but the more difficult cement market in Spain led to a 4.1% reduction in the EBITDA to EUR137.8m.   Spanish cement shipments declined by 4.3% to 4.06m tonnes, while, thanks to acquisitions, sales of aggregates rose by 18.1% to 5.30Mt and ready-mixed concrete deliveries improved by 6.0% to 2.97Mm³.
 
The closure of one of the three production lines in Egypt for renovation led to an 8.7% reduction in cement and clinker shipments, particularly in clinker exports, and the EBITDA was off by 7.5% to
EUR58.6m, but the turnover still improved by 2.2% to EUR117.3m and the margins remain the highest in the group at 48.6%.  In Morocco, cement deliveries were off by 1.8% to 1.13Mt, but the increased size of the downstream operations helped to provide a 14.6% increase in turnover to EUR80.5m and the EBITDA rose by 5.1% to EUR35.2m.   Tunisian volumes eased by 1.6% to 1.46Mt, but the EBITDA improved by 8.2% to EUR18.9m on a turnover just 0.2% ahead at €59.7m.  The initial nine month contribution from Turkey provided a turnover of EUR163.1m and an EBITDA of €38.6m from the sale of 2.31Mt of cement, 1.95Mt of aggregates and 0.93Mm³.