Vicat increases cement shipments by 13.7%

Vicat increases cement shipments by 13.7%
Published: 04 February 2015

Tagged Under: France Results Asia Europe Africa USA Vicat 

Vicat's turnover improved by six per cent in 2014 to €2423m, which translates into an underlying increase of eight per cent  on a like-for-like basis.

Turnover in cement advanced by 13.7 per cent  to €1261m, or €1483m before deducting inter-group transfers. Aggregates and concrete sales declined by 1.8 per cent  to €860m, while other activities saw turnover edging ahead by 0.3 per cent to €301m. Cement accounted for 53.7 per cent  of turnover, up from the 50.6 per cent  shown in the previous year. The concrete and aggregates share declined from 34.2 per cent  to 31.9 per cent while other activities accounted for 14.4 per cent , down from 15.2 per cent. Group cement deliveries rose by 13.7 per cent  to 20.53Mt, but aggregates shipments declined by 6.8 per cent  to 21.22Mt and ready-mixed concrete deliveries were off by three per cent to 8.27Mm³.

Domestic decline
Turnover in France declined by 2.9 per cent, or by an underlying 3.7 per cent to €831m, reflecting the lower construction activity in a weak economic environment. Cement turnover fell by 4.4 per cent as volumes came off by a another 2.4 per cent and the average selling price suffered from a further deterioration in the product mix. The fourth quarter showed turnover down by 8.2 per cent  on the back of a volume reduction exceeding 10 per cent.

The underlying aggregates tonnage came down by more than five per cent, but the average price did improve and ready-mixed concrete deliveries were stable, but prices were a bit lower, giving an overall turnover reduction in ready-mixed concrete and aggregates of 4.9 per cen.In other activities, turnover eased by 0.5 per cent, but came off by 4.3 per cent  increase in the final quarter. 

Rest of Europe
In the rest of Europe, turnover came off by 2.1 per cent to €418m and at the underlying level the decline was 3.5 per cent. The Swiss operations dominate the turnover. The Swiss cement turnover was five per cent lower at €108m, with prices being off a little and volumes declining by around four per cent. The Swiss concrete and aggregates turnover contracted by 4.9 per cent  with prices being stable in concrete and slightly ahead in aggregates.

Volumes were lower in concrete but stable in respect of aggregates. The pre-cast concrete business was a 0.4 per cent reduction in turnover. In Italy, turnover came off by 3.9 per cent, with volumes being one per cent  lower and export sales being weaker.

US turnover improves
The US turnover improved by 11.7 per cent  to €247m, with the final quarter showing an increase of 14.7 per cent. The cement turnover increased by 16.7 per cent  as volumes advanced by almost 10 per cent  and prices showed an increase of almost eight per cent. The volume increase was similar in California and the southeast. Another price increase was introduced in California during October. Turnover in ready-mixed concrete increased by 9.6 per cent  on the back of a volume increase of four per cent, with most of the volume increase being seen in California. The fourth quarter volume declined by around four per cent but higher prices allowed the turnover to advance by 1.6 per cent.

Asian advances
Overall Asian turnover increased by 15.1 per cent, or by 27.2 per cent  in local currencies, to €520m. Turnover in Turkey improved by an underlying 11.7 per cent to €229m, though in euro terms there was a 2.6 per cent  decline. The final quarter sales improvement was 13.1 per cent.

The Turkish cement turnover rose by 22.7 per cent , though the volume was off by just over two per cent  while prices were sharply higher. Turnover in aggregates and concrete was down by 4.3 per cent, ready-mixed concrete deliveries fell by some 11 per cent and aggregates volumes dropped by more than 17 per cent  but prices rose, particularly in aggregates. 

In India, the turnover jumped by 48.4 per cent, or by 54.7 per cent  at constant scope and exchange rates, to €230m. Cement shipments rose by 41 per cent  to almost 4.5Mt. Selling prices began to improve from the second quarter and recorded a solid rise over the full year. The volume increase in the final quarter was a more modest 10 per cent. In Kazakhstan, volumes at the Jambul Cement works were raised by almost 24 per cent  and the turnover increased by an underlying 18 to €71m, as cement shipments reached almost 1.3Mt.

West Africa – good market conditions
The West African and Egyptian turnover, which had been declining for three years in a row, staged a 23.6 per cent recovery to €397m. In Egypt, turnover improved by 58.6 per cent as volumes advanced by almost 33 per cent  and prices rose. Demand remained good throughout the year, but supply was a problem because of interruptions in the supply of energy, notably gas.

In West Africa, turnover advanced by 12.8 per cent  thanks to good market conditions in most of the countries served and cement shipments were ahead by almost 15 per cent , while selling prices recorded a slight decline year on year.  Turnover in the final quarter was ahead by 11.1 per cent  on the back of a volume increase of close to 12 per cent .

The full results are to be announced on the 10 March 2015.