In the first nine months of the year, Cimpor improved its turnover by 11.8 per cent to €1158.0m, with operating margins across the group improving slightly as the operating profit at the EBITDA level rose by 12.0 per cent to €385.8m. However, a 17.6 per cent increase in amortisation and depreciation left the trading profit (EBIT) only 9.7 per cent higher at €268.5m. The net interest charge was again influenced by exceptional items, excluding which the charge would have been around €11.5m. The volatility caused by the adoption of IFRS, with the market value of derivatives alone causing a negative swing of €21.4m, has led to a reduction in the net profit shown of almost €50m, leaving it 0.4 per cent higher at €203.8m. The revaluation of the Brazilian and Egyptian currencies boosted shareholders’ funds at the end of September, giving a gearing level of 84.2 per cent, with net debt some two per cent down on the end 2004 figure at €1286m.
Group cement and clinker volume increased by 5.3 per cent in the period to 14.9Mt. Although Portuguese cement demand has remained weak, increased export shipments enabled an increase in the Portuguese profit by €10.2m. In Spain, Cimpor had the benefit of improved prices, though domestic deliveries were 0.7 per cent lower, and the EBITDA rose by 16.6 per cent.