Buzzi improves in the USA & central Europe

Buzzi improves in the USA & central Europe
Published: 11 May 2015


Buzzi Unicem's first-quarter turnover increased by 3.4 per cent to EUR513.39m and the EBITDA went from a EUR10.26m to EUR27.15m. The loss at the trading level was reduced by 48.6 per cent to EUR19.24m. Net financial charges increased by 31.3 per cent to EUR43.01m giving a seasonal pre-tax loss 24.5 per cent lower at EUR46.16m. Net debt at the end of March was 6.6 per cent higher at EUR1133.3m, giving a gearing level of 45.1 per cent compared with 45.5 per cent a year earlier.

Cement deliveries increased by 2.2 per cent to 4.9Mt, while group ready-mixed concrete deliveries declined by 3.3 per cent to 2.4Mm³.

The Italian turnover showed a 2.9 per cent decline to EUR84.1m while the loss at the EBITDA level was reduced by 7.9 per cent to EUR8.2m. Deliveries of cement and clinker fell by 1.9 per cent, including export shipments. The average selling price was 8.2 per cent lower than a year ago, reflecting an increasing share of clinker deliveries, In ready-mixed concrete, volumes rose by 10 per cent but prices came down by 2.6 per cent.

German cement volumes faced a difficult comparison and cement deliveries declined by 5.2 per cent to 1.01Mt while prices eased by 1.1 per cent, with the oilwell cement market being notably weaker. Ready-mixed concrete deliveries declined by 11.6 per cent to 0.71Mm³. The turnover declined by 9.9 per cent to EUR1115.1m and EBITDA turned negative again with a loss of EUR0.7m compared with a EUR0.2m profit a year ago. Luxembourg turnover declined by 9.9 per cent to EUR22.3m and the EBITDA registered a EUR1.6m loss compared with a EUR0.3m profit. Cement and clinker shipments were off by 10.4 per cent with prices being 1.5 per cent lower and a EUR0.2m gain was achieved from selling emission rights. Dutch turnover was 2.3 per cent higher at EUR13.5m and the EBITDA loss was reduced from EUR0.8m to EUR0.4m, with ready-mixed concrete volumes improving by 9.1 per cent to 0.15Mm³ but prices declined by three per cent.

In Poland, cement deliveries improved by a further 8.9 per cent recovery to 0.22Mt while prices declined by 11.5 per cent and ready-mixed concrete volumes were 1.1 per cent higher at 0.15Mm³. The turnover improved by EUR0.4m to EUR17.51m while at the EBITDA level there was a EUR0.2m loss compared with a EUR0.3m profit. Czech cement deliveries advanced by 5.7 per cent to 0.15Mt but the local price eased by 2.7 per cent and a EUR0.2m gain was achieved from selling emission rights. Ready-mixed concrete volumes in the Czech Republic and Slovakia declined by 14.2 per cent and prices improved by 4.4 per cent.

Ukrainian turnover recorded a 39.2 per cent reduction to EUR10.3m as the currency fell sharply and the EBITDA loss was reduced from EUR2.4m to EUR1.4m. Cement shipments rose by 6.5 per cent to 0.27Mt while prices in local currency improved by 16.2 per cent. In Russia, turnover dropped as a result of the fall in the value of the rouble and was down by 17 per cent to EUR33.7m, but there was a 22.6 per cent improvement in local currency and the EBITDA declined by 43.7 per cent to EUR8.5m and declined by 16.8 per cent in local currency as cement shipments increased by 23.4 per cent, helped by the addition of the Korkino works.

The United States first quarter and cement deliveries were ahead by 2.8 per cent in spite of a sharp drop in deliveries of oilwell cements and the average price improved by 11.0 per cent in dollar terms. Ready-mixed concrete deliveries declined by 0.9 per cent but prices improved significantly. The turnover increased by 34.4 per cent to EUR204.5m, helped by a stronger dollar and the EBITDA improved from EUR7m to EUR30.1m.

The Mexican associate Corporaciòn Moctezuma increased its turnover by 40.9 per cent from EUR118.1m to EUR159.0m and the EBITDA rose by 49.1 per cent to EUR65.7m. Cement deliveries improved by more than expected and ready-mixed concrete deliveries reacted in a similar way.