Expansion boosts Cimpor volumes

Expansion boosts Cimpor volumes
Published: 15 November 2007

Cimpor’s turnover increased by 17.3% to EUR1464.9m for the first nine months of the year, helped by initial contributions from Turkey and China for six months and three months respectively.  The EBITDA improved more modestly by 7.7% to EUR467.3m as margins narrowed, notably in response to higher kiln fuel costs, but also reflecting a greater contribution from downstream operations.  A 9.6% increase in depreciation and provisions left the trading profit 6.9% higher at EUR333.5m, but a 50% increase in the interest left the pre-tax profit just 2.8% ahead at EUR292.3m.  Net debt at the end of September stood at EUR1494.5m, giving a gearing level of 82.9%.  Cement deliveries were 19.5% higher at 18.3Mt, with acquisitions adding 2.6Mt. Aggregates deliveries increased by12.4%, while ready-mixed concrete shipments rose by 20.6% and mortar volume by 10.8%.   
 
Portuguese turnover was 2.2% higher at €418.7m but the EBITDA declined by 2.1% to
EUR132.3m in the face of the continued depressed state of the domestic construction market and cost pressures from higher energy costs.  In Spain, the EBITDA improved by 0.7% to EUR111.5m on a turnover of EUR359.7m, with higher prices more than making up for lower cement deliveries.
 
In Egypt the closure of one of the three production lines for renovation led to a 7.5% decline in turnover to
EUR90m and the EBITDA fell by 11.4% to €44.0m, but margins remained the highest in the group at 48.9%.  In Morocco the EBITDA increased by 12.6% to EUR28.4m on a turnover of EUR62.3m, with the downstream operations being expanded.  The Tunisian EBITDA rose by 27.6% to EUR16.8m on a turnover of EUR47.2m.  Turkey made an initial six-month contribution of EUR34.4m on a turnover of EUR128.4m.