Outlook: Italcementi FY revenues to rise on emerging markets

Outlook: Italcementi FY revenues to rise on emerging markets
Published: 04 February 2008

Italcementi SpA  is expected to show a slight rise in full-year revenues when it reports its preliminary results this evening, as a strong performance in emerging markets should have more than offset weakness in North America, analysts said.  
 
Revenues are seen rising to EUR6.096bn from EUR5.854bn a year earlier, according to an average of estimates from seven analysts. Figures for net and operating profits are due to be disclosed with the final report on March 6.  
 
Analysts said no conference call is scheduled, though more disclosure regarding the probe into alleged links with the Sicilian mafia and fraud in public supplies at its Calcestruzzi SpA concrete unit would be welcomed.  
 
The probe led to the arrest on Jan 30 of Calcestruzzi’s CEO and the seizure of the assets of the company, reportedly worth EUR600m. Calcestruzzi is now being administrated by a manager appointed by magistrates and its operations in Sicily have been closed.  
 
A Mediobanca analyst, who visited Italcementi on Jan 31, said the continuity of Calcestruzzi’s operations is assured and therefore he expects no direct impact on Italcementi’s results.  
 
The Mediobanca analyst said revenues in emerging markets should rise by 8.8 per cent to EUR1.596bn, increase by 3.8 per cent to EUR3.918bn in Europe and fall by nine per cent to EUR600.3m in North America.