Dyckerhoff seen German cement demand drop by 6% to 8% this year

Dyckerhoff seen German cement demand drop by 6% to 8% this year
Published: 09 August 2005

Buzzi Unicem’s subsidiary Dyckerhoff has reported a 6.9% increase in turnover to EUR 588m for the first half of 2005, with the EBITDA improving by 17.8% to EUR 119m. Cement shipments in the period were 2.3% higher at 7.5Mt, while ready-mixed concrete deliveries advanced by 4.3% to 2.5Mm³.  Capital expenditure, principally in eastern Europe and in the United States, rose by some 37% to EUR 37m.
 
German turnover declined by 1.7% to EUR 225m as higher prices were more than offset by lower volumes and divestment. Deliveries of cement and ready-mixed concrete in the group’s German operations declined by 4% and 6% respectively, though domestic cement deliveries were down by more than that but partially offset by exports.  A 11% decline in German cement demand in the first half and a likely drop of between 6% and 8% for the year has led to the price recovery coming to a halt as some producers have become more concerned with volumes. Average prices are around EUR 5/t higher than the average achieved last year and unlikely to change much for the rest of the year, but Dyckerhoff plans a sizeable increase in 2006. The closure of the grey clinker production at the Amöneburg works at the end of 2005 is to be seen as a shift to more slag based products, which will be ground there.
 
RC Lonestar, the Buzzi Unicem subsidiary in which Dyckerhoff has a 48.5% stake, reported a 9.5% increase in cement deliveries and turnover attributable to Dyckerhoff increased by18.3% to EUR 142m, helped by prices being ahead by some 14%.  Price increases have held and a further price increase is being planned for next January.