Portland Valderrivas reduces losses

Portland Valderrivas reduces losses
Published: 27 November 2013

Cementos Portland Valderrivas has cut losses in the first nine months of 2013 thanks by 74 per cent to EUR24.8m compared to EUR95.2m in the same period of last year, thanks to a series of cost control measures.

Group revenues for the period amounted to EUR413m, of which Spain accounted for EUR168m. Operations in the US and Tunisia accounted for 60 per cent of group revenues and partly offset weak cement demand in Spain, which fell 22 per cent YoY to 8.3Mt over the Jan-Sept period. EBITDA in the first nine months totalled EUR42.3m, down 35 per cent YoY.

The group sold CO2 emission rights worth EUR2.6m, compared with EUR31.4m in 2012. Excluding that item, EBITDA would have expanded by 17 per cent as a result of the measures implemented to adapt costs to market conditions and to increase operational efficiency.

EBIT was positive at EUR18.9m reflecting capital gains from the swap and sale of assets with CRH as well as provisions in connection with asset impairment and restructuring of its workforce. After applying EUR77m in financial expenses and EUR36.9m in tax credits, consolidated income for the period was EUR-24.8m. Net debt as at 30 September 2013 was EUR1.375bn.

The US subsidiary advanced notably, due to a significant improvement in management and growth in sales, with the result that its three plants on the east coast are driving the group's recovery. Its cement plant in Tunisia also increased sales by four per cent which is attributable to growth in exports to Libya and Algeria.
Adjustment plan update
Cementos Portland Valderrivas continues to implement measures to reduce costs and increase profit margins. The plan envisions a recurring improvement of EUR37m in EBITDA, based on restructuring capex of approximately EUR30m. More than 75 per cent of the planned actions have already been completed or are underway, and the impact is expected to be fully visible in 2014 earnings.

New appointments
Cementos Portland Valderrivas Board of Directors have appointed José Ignacio Elorrieta Pérez de Diego as a director following the resignation of Juan Castells'.

To fill the position on committees left by Mr Castells, the following appointments were made: Lourdes Martínez Zabala to the appointments, Remuneration and Corporate Governance Committee; Cartera Deva, S.A., represented by Jaime Llantada Aguinaga, to the Audit and Control Committee; and Gustavo Villapalos Salas to the Executive Committee.