Buzzi boosted by strong US performance

Buzzi boosted by strong US performance
Published: 11 November 2015

Tagged Under: Results Buzzi Unicem Italy 

Buzzi Unicem's turnover for the first nine months improved by 5.2 per cent to EUR1998.1m while EBITDA rose by 16.4 per cent to EUR352.1m. The trading profit was ahead by 52 per cent to EUR206.9m and net financial charges rose by 65.2 per cent to EUR83.8m.

The contribution from associates increased by 38.0 per cent to EUR50m and the pre-tax profit was ahead by 46.9 per cent to EUR178.9m. The tax charge, however, declined by 11.8 per cent while the minorities charge fell by 68 per cent, leading to a 128.7 per cent jump in the net attributable profit to EUR127.6m. Buzzi Unicem expects an EBITDA for 2015 around EUR450m, compared with the EUR423m produced last year,

Net debt at the end of September was 1.1 per cent higher at EUR1073.9m giving a gearing level of 41.1 per cent compared with 44.4 per cent a year earlier. Capital investment in the period was 79.7 per cent higher at EUR225.7m.

Cement deliveries were 1.3 per cent ahead at 19.2Mt but ready-mixed concrete deliveries declined by 2.3 per cent to 8.9Mm³.

Italy
The Italian turnover declined by a further four per cent to EUR282.8m, while the EBITDA loss was just over doubled from EUR9m to EUR9.7m, but net of non-recurring items the loss was a little more modest at EUR9.2m.  The average selling price declined by six per cent, with an increased export quota, while the volume of cement and clinker sold declined by 2.6 per cent. In ready-mixed concrete both delivery volumes and prices were largely unchanged compared with the previous year. Buzzi Unicem has submitted an offer for the cement and concrete activities of SACCI, on which the creditors of the bankrupt company will vote in January.

Rest of Europe
Turnover in Germany was down by 7.8 per cent to EUR429.8m while the EBITDA declined by 7.1 per cent to EUR52.7m. Cement deliveries decreased by 4.9 per cent to 3.73Mt while the average price improved by 0.2 per cent. Ready-mixed concrete deliveries were 8.4 per cent lower and average prices eased by 1.6 per cent. Turnover in Luxembourg declined by 4.4 per cent to EUR77.2m and the EBITDA was off by 11.2 per cent to EUR11.6m. Cement and clinker shipments were down by 4.9 per cent and the average price eased by 0.6 per cent, while were increased by 19 per cent but pricing was weak. The Dutch turnover staged a 13.6 per cent recovery to EUR48.5m and there was a EUR1.6m profit at the EBITDA compared with a EUR0.7m loss. Dutch ready-mixed concrete deliveries increased by 19.4 per cent to 0.5Mm³.

The Polish turnover increased by 11.9 per cent to EUR76.2m and the EBITDA staged a 31.1 per cent recovery to EUR20.3m. Cement shipments rose by 23.9 per cent as the company regained market share, but the price came down by 12.0 per cent. Ready-mixed concrete deliveries improved by 7.1 per cent though the average price was 1.1 per cent lower. The Czech cement volume improved by 3.2 per cent while prices eased by 0.7 per cent. Ready-mixed concrete volumes in the Czech Republic and Slovakia rose by 2.5 per cent on prices that were 2.7 per cent ahead. Turnover improved by 0.8 per cent to EUR100.8m and the EBITDA advanced by 28.3 per cent to EUR24.7m.

Ukrainian cement shipments were off by four per cent to 1.28Mt and the average price was ahead by 19.8 per cent in local currency. A further weakening of the local currency saw turnover fall by 27.2 per cent to EUR52.4m while the EBITDA dropped from EUR11.8m to EUR4.3m as costs increased by 57.7 per cent for fuels and by 38.7 per cent for electric power.

In Russia, the contribution from the Korkino works led to a 9.2 per cent increase in cement shipments to around 2.6Mt, but on a comparative basis there would be a 15.9 per cent decline. Prices in local currency eased by 0.7 per cent, but given the drop in value of the Russian currency there was a 22.7 per cent drop in turnover to EUR136.2m and the EBITDA fell by 37.5 per cent to EUR40.5m. On an underlying basis, turnover would have decreased by 7.4 per cent and EBITDA by 21.4 per cent.

US
Helped by exchange rate movements, the United States turnover improved by 33.0 per cent to EUR823.5m and the EBITDA advanced by 59.9 per cent to EUR216.2m. Cement deliveries increased by just 2.9 per cent because poor spring weather in Texas and much reduced sales of oil well cement. The average selling price improved by 8.3 per cent in local currency. In ready-mixed concrete volumes declined by 4.5 per cent while selling prices were ahead by 10.7 per cent. Electricity costs were stable and kiln fuel costs declined by some 14 per cent. EUR121.5m was spent in the period on the up-grading and expansion of the cement works at Maryneal in Texas, which should be completed in the spring of 2016.   

Mexico
The 50 per cent-owned Mexican associate Corporaciòn Moctezuma generated a turnover 26.1 per cent higher at EUR475.2m and the EBITDA was 41.5 per cent ahead at EUR195.8m. Cement shipments in the nine months showed a further improvement and the average price showed a gradual improvement over the period. Ready-mixed concrete deliveries continued to advance, in particular in Mexico City.