Cementir sees growth in Turkey

Cementir sees growth in Turkey
Published: 11 November 2005

The results of Cementir’s first nine months show the effect of the acquisition of Aalborg Portland Cement and Unicon towards the end of October last year. Turnover rose by 173.3 per cent to €636.7m and the EBITDA advanced by 120.7 per cent to €97.1m.  Trading profit increased by 108.3 per cent to €97.1m, which, after a €10.8m negative swing in financial items in the wake of last year’s expansion, reduced the increase in the pre-tax profit to 75.0 per cent to €92.5m.  In terms of activity, grey and white cement accounted for a turnover of €406.8m, an increase of 94.3 per cent, while the contribution from ready-mixed concrete rose more than eight-fold from €28.0m to €229.9m. Excluding Aalborg Portland Cement and Unicon, the turnover of the original business rose by 8.7 per cent to €253.3m, while the EBITDA declined by 12.2 per cent to €56.8m.  
 
The considerably increased involvement in ready-mixed concrete through the purchase of Unicon as well as a more difficult pricing scenario in Italy during the first half of year explain the reduction in the EBITDA margin from 27.8 per cent in the first nine months of last year to 22.4 per cent this time.  Some improvement in the Italian market was seen in the third quarter and this more positive tendency is continuing into the final quarter of the year.  The group’s Turkish operations are improving sales and profitability in a market that is performing better than had been expected earlier in the year.  The €166.5m purchase of the Lalapasa cement works near Edrine in the European part of Turkey by Cementas is still awaiting clearance from the local competition authorities but this is expected to be forthcoming before the end of the year.  The former FLS operations are performing ahead of plan, largely thanks to strong results to date from Unicon.
 
In terms of geography, turnover in Europe rose by 214.8 per cent to €484.9m, while Asia, still predominantly Turkey, reported a 33.3 per cent increase to €105.2m, with the rest came from the Aalborg Portland operations in North America (€28.6m) and in North Africa (€18.0m).