Portugal’s weakness more than compensated for by Spain

Portugal’s weakness more than compensated for by Spain
Published: 15 November 2006

Cimpor’s turnover for the first nine months of the year has shown a reduced rate of growth, but still ahead by 7.8% to EUR1,248.9m. Margins improved as the EBITDA rose by 12.5% to EUR434.0m. The trading profit was up by 16.2% to EUR312.0m, but higher interest charges, tax payments and minorities reduced the improvement at the net level to 9.3% to EUR214.3m. Net debt at the end of September stood at 58.8% of shareholders’ funds, or EUR938m. Cement and clinker sales in nine month period was 2.3% higher at 15.3Mt.  
 
The Portuguese operations turned in the weakest performance with the EBITDA falling by 9.0% to EUR135.2m and margins declining to 33.0% from 33.4% a year ago. The Portuguese construction market is still in a weak state, but apart from the relatively modest trading and shipping activities, the only area to register reduced profitability. Margins in Spain, on the other hand, improved from 28.7% to 33.9% in a buoyant market, with the EBITDA advancing by 34.4% to €110.7m.