Buzzi Unicem reduces debt and raises cement volumes
Buzzi Unicem turnover improved by 5.2 per cent last year to €2787m, of which Dyckerhoff contributed a 13.2 per cent advance to €1600m. The underlying EBITDA, which will be announced on the 30th of March, is estimated to be around €420m. Net debt hat the end of December was reduced by 9.8 per cent to €1,143m. Group cement deliveries improved by 6.2 per cent last year to 28.2Mt, though they were lower in Italy and in the United States. Ready-mixed concrete deliveries increased by 4.8 per cent to 15.1Mm³, but were lower in Italy, the United States and in Mexico.
The Italian turnover came down by a further 7.5 per cent to €568m as domestic demand declined. Buzzi Unicem’s cement shipments fell by 10.5 per cent to 5.7Mt as export volumes also fell. Domestic cement prices, however, recovered by around 8 per cent from the extremely depressed levels seen in the previous year. Ready-mixed concrete deliveries were 11.5 per cent lower, but prices held up well and increased by 0.7 per cent on average.
In Western Europe, turnover rose by 17.8 per cent to €860m, with Germany accounting for 74 per cent of this. The German turnover advanced by 16.2 per cent to €637m, helped in part by a full year’s consolidation of Sibo. Cement deliveries were 12.8 per cent higher at around 5.3Mt, but the average price eased by 1.5 per cent. The consolidation of ‘Sibobeton’ for the full year helped to bring about a 27.5 per cent increase in ready-mixed concrete deliveries, but the average price eased by 0.5 per cent. The Luxembourg turnover rose by 22.8 per cent to €113m as cement deliveries rose by 22.3 per cent though the average price came off by 1.8 per cent. The Dutch turnover eased by 3.0 per cent to €110m, with ready-mixed concrete volumes advancing by 3.6 per cent, but prices declined by 3.0 per cent
The Polish turnover improved by 11.6 per cent to €144m, in spite of a €4.5m exchange loss from the devaluation of the zloty. Cement deliveries were 7.8 per cent higher, but prices in local currency were only 0.8 per cent higher. In ready-mixed concrete, volumes rose by 17.2 per cent and prices hardened by 10.2 per cent. In the Czech Republic and Slovakia, turnover rose by 8.2 per cent to €172m, helped by a €4m benefit from the revaluation of the Czech crown. Taking advantage of vertical integration and increasing exports to Poland, cement volumes rose by 26.2 per cent though prices were under pressure from Slovak imports. In ready-mixed concrete, volumes rose by 11.9 per cent, but prices eased by 3.9 per cent.
The Ukrainian construction market was strong and turnover rose by 37.9 per cent to €113m, in spite of a €6.1m hit from the devaluation of the hryvna. Cement deliveries increased by 24.0 per cent and prices in local currency rose by 16.8 per cent. Ready-mixed concrete deliveries were 22.6 per cent higher and the average price improved 12 7 per cent. In Russia, strong demand for cement led to a 33.7 per cent advance in cement shipments and the price increased by 6.6 per cent in local currency. The turnover rose by 41.4 per cent to €1176m. Measured in local currency, the turnover advanced by 43.6 per cent.
In the United States, turnover declined by 7.2 per cent to €558m, but in dollar terms the underlying decline was a more modest 2.5 per cent. Cement deliveries were down by 1.6 per cent, and prices fell by 5.3 per cent in dollar terms as no recovery in building activity was seen. Ready-mixed concrete deliveries eased by 1.3 per cent, but prices did improve by 1.9 per cent.
The 50 per cent-owned Mexican associate Corporaciòn Moctezuma improved turnover by 11.5 per cent to €238m, which represents a 15.2 per cent advance in constant currency terms. Thanks to the new Apazàn works, cement shipments were increased by 13.6 per cent to 5.6Mt. Pricing was firm and prices increased by 5.9 per cent in local currency. In Ready-mixed concrete deliveries were 2.6 per cent lower, but prices did increase by 5.6 per cent.
The full 2011 results are to be published on 30 March 2012.
