Ciments Francais posts EUR564m net profit 2007

Ciments Francais posts EUR564m net profit 2007
Published: 07 March 2008

Ciments Francais, a unit of Italcementi, closed 2007 with a net profit of EUR564m (US$868.3m), down by 4.4 per cent YoY.

Consolidated net profit fell 7.3 per cent to EUR466m (US$717.5m).

The consolidated revenue of Ciments Francais stood at EUR4.685bn, a rise of 6.9 per cent.

EBITDA went down 0.4 per cent to EUR1.209bn (US$1.861bn).

The investments made over the period amounted to EUR587m (US$903.7m).

The net financial debt of the French cement supplier totalled EUR1.513bn at December 31, 2007, up by EUR36m, compared to December 31, 2006. The net financial position/net financial debt is calculated as the difference between a company’s financial debts and liquid assets.

During the 2007 financial year, on a historical basis, sales volumes rose for cement and clinker at 51.7Mt (+2.4%) and ready-mixed concrete at 14.1Mm3 (+10.7%). Aggregates decreased slightly at 50.7Mt (-1.0%) primarily due to the temporary closing of a site in Spain. Ciments Français consolidated revenues added up to EUR4,685m, a 6.9% growth against 2006. Despite a lower fourth quarter, recurring gross operating profit remained stable at EUR1,209m (-0.4%), thanks to the price effect that offset the increase in operating costs, and a scope impact neutralized by a negative exchange rate effect. Operating profit, after recognition of clearly increasing amortization and depreciation costs compared with 2006 due to growing capital expenditure made over the previous years, amounted to EUR853m (-2.1%)
 
’Faced with a more uncertain economic environment, management has further intensified its plan to reduce fixed costs and implemented a new industrial efficiency program for its cement plants,’ the company said. 
 
’With about two-thirds of its industrial capacity in emerging countries and despite the occasional weakening of some mature markets, the Group expects at least to maintain its operating results in 2008’.  
 
Ciments Francais said it will propose a full-year dividend of 2.50 eur per share compared with EUR2.28 the year before.