Italcementi H1 sales rise 21.4% on higher volumes, prices

Italcementi H1 sales rise 21.4% on higher volumes, prices
Published: 06 September 2006

Italcementi SpA said that first half sales rose 21.4 per cent to EUR2.910bn boosted by an increase in volumes and a positive price trend in all its markets.

The company said that sales of cement and clinker rose 21.7 per cent to 31.9Mt, aggregates rose 6.0 per cent to 29.5Mt and ready-mixed concrete rose 2.2 per cent to 10.8 per cent.

First half figures however also benefited from the consolidation of the company’s Egyptian and Indian businesses. On a like-for-like basis, cement and clinker sales rose 5.5 per cent and aggregates 5.0 per cent.

Gross operating profits rose to 49.3 per cent to EUR739.5m, operating profits rose 63.2 per cent to EUR535.6m, net profit before minorities increased 59.3 per cent to EUR339.7m and net profit after minorities rose 49.5 per cent to EUR229.9m.

Italcementi said it expects a slowdown in business in some of its markets in the second half of the year. It also added that it will be difficult to transfer any energy price increases to sales prices.

Nevertheless, thanks to the performance achieved in the first half the group expects a ’significant improvement’ in full year operating profits, as well as growth in consolidated net profit despite higher financial costs and tax expenses.