Cementir's pre-tax profit more than doubles

Cementir's pre-tax profit more than doubles
Published: 08 November 2013

Tagged Under: 3Q13 Cementir 

Cementir's turnover for the first nine months of 2013 increased by 1.4 per cent to EUR741.4m as higher numbers in the Nordic countries, Turkey and the Far East nor than offset the reductions in Italy and Egypt, but the EBITDA did rise by 22.3 per cent to EUR116m. The trading profit advanced by 65.6 per cent to EUR50.7m. After a net financial charge 20.9 per cent lower at EUR11m the pre-tax profit again more than doubled to EUR39.7m compared with EUR16.7m a year ago. Net debt at the end of September came down by 9.5 per cent to EUR370.6m to give a gearing level of 34.8 per cent.

In the Nordic area, turnover increased by about EUR12m on the back of improved prices and increases in ready-mixed concrete volumes of some nine per cent in both Norway and Sweden. In Italy, cement deliveries were down by another 14 per cent and turnover declined by EUR17m. The integrated cement works at Taranto (1.4Mta) and Arquata Scrivia (0.8Mta) will be converted into grinding centres and the head office, commercial and distribution activities will be reduced in size with the loss of 144 jobs. In England, work has started on the building of a waste treatment plant.

The Turkish turnover was five per cent lower, though in local currency an increase in excess of 10 per cent was recorded, with volumes increasing by 6.6 per cent in cement and by 11.5 per cent in ready-mixed concrete. A double-digit fall in the value of the Egyptian pound led to a nine per cent decline in the turnover from Egypt, though domestic deliveries and prices increased but exports were much lower. Far Eastern revenue increased by EUR4m as sales of white cement improved by 14 per cent in China and by 13 per cent in Malaysia.

Grey and white cement volume eased by 0.6 per cent to 7.31Mt. The aggregates tonnage declined by 14.6 per cent to 2.31Mt but deliveries of ready-mixed concrete did increase by 4.3 per cent to 2.75Mm³. The third quarter, however, did show a more encouraging trend in the three product ranges. The workforce was reduced by 6.5 per cent to 3165 compared with a year earlier.