Calcestruzzi problems delay Italcementi’s results

Calcestruzzi problems delay Italcementi’s results
Published: 14 March 2008

Italcementi has postponed the announcement of its annual results, originally scheduled for the 18th of March, until the 26th of March to allow more time for the assessment of the accounting treatment of the illegal activities that went on in Calcestruzzi, the Italian ready-mixed concrete and aggregates arm, infiltrated by the Sicilian Mafia.  Earlier this year, the chief executive of Calcestruzzi was arrested and the company’s assets were seized by the court.  Calcestruzzi represents around 9% of Italcementi’s global turnover and the potential impact on the group’s results could be material.  A new board has been appointed for Calcestruzzi, consisting entirely of accounting, legal and civil engineering professionals independent of Calcestruzzi.   Furthermore, Italmobiliare, the controlling shareholder of Italcementi, is under pressure from investors to improve both its performance and its corporate governance.