Buzzi Unicem - November 2016

Buzzi Unicem's turnover for the first nine months was a marginal 0.02 per cent ahead at EUR1998.5m, while the EBITDA did rise by 18.2 per cent to EUR416.2m. The trading profit was ahead by 31.7 per cent to EUR272.4m and net financial charges declined by 7.1 per cent to EUR77.9m. The contribution from associates increased by 21.3 per cent to EUR60.6m and the pre-tax profit was ahead by 42.7 per cent to EUR255.3m. The tax charge increased by 27.8 per cent while the minorities charge declined by four per cent to EUR2.8m, leading to a 51.3 per cent rise in the net attributable profit to EUR177.9m. Buzzi Unicem expects EBITDA for 2016 of around EUR520m, compared with the EUR473.2m produced last year.

Net debt at the end of September was 4.4 per cent lower at EUR984.5m giving a gearing level of 37.3 per cent compared with 41.1 per cent a year earlier. Capital investment in the period was 21.6 per cent lower at EUR176.9m. Cement deliveries were 1.2 per cent ahead at 19.5Mt, but ready-mixed concrete deliveries eased by 0.8 per cent to 8.8Mm³. 

The Italian turnover declined by a further 1.1 per cent to EUR279.7m, while the EBITDA loss was reduced by 15.2 per cent to EUR16.7m. The average selling price was in line with the same period last year, while the volume of cement and clinker sold declined yet again. In ready-mixed concrete volumes were ahead and prices were slightly better compared with the previous year. Buzzi Unicem benefited from lower fuel prices, but electricity prices were higher.

Turnover in Germany was virtually unchanged (down by less than 0.05 per cent) at EUR429.6m while EBITDA increased by 16.3 per cent to EUR61.2m. Cement deliveries improved, but the average price was slightly lower. Ready-mixed concrete deliveries were ahead, though by less than for cement, and the average price war marginally lower. Turnover in Luxembourg and The Netherlands recovered by 4.8 per cent to EUR131.7m and EBITDA increased by 55.3 per cent to EUR20.5m. Cement and clinker shipments showed good growth, but the average price eased a little. 

The Polish turnover decreased by 3.6 per cent to EUR73.4m, but EBITDA improved by eight per cent to EUR21.9m. Cement shipments were ahead again, but the price was lower though fairly stable since the beginning of the year. Ready-mixed concrete deliveries continued to improve and the average price showed some improvement. The Czech cement volume improved but prices eased slightly in local currency. Ready-mixed concrete volumes in the Czech Republic and Slovakia were slightly lower, but prices were ahead. Turnover improved by 0.6 per cent to EUR101.5m and EBITDA gained 3.5 per cent to EUR25.5m.

Ukrainian cement shipments improved and the average price was well ahead in local currency in a high inflation environment and the ready-mixed concrete deliveries also improved. The turnover showed a 15.7 per cent recovery to EUR60.7m while the EBITDA recovered from EUR4.3m to EUR12.1m. In Russia, a weak start to the year led to slightly lower volumes for the nine months while prices were stable in local currency. With the continuing decline in value of the Russian currency there was a 12.9 per cent reduction in turnover to EUR118.5m while EBITDA held up better and was off by just 7.6 per cent to EUR37.4m. On an underlying basis, turnover would have been off by 0.4 per cent and EBITDA increased by 3.9 per cent.

The United States turnover improved by one per cent to EUR831.7m and the EBITDA advanced by 17.6 per cent to EUR254.2m. Cement deliveries were little changed because poor spring weather in Texas and a further reduction in sales of oil well cement. The average selling price continued to improve in cement and was slightly ahead in ready-mixed concrete. Ready-mixed concrete volumes, which are mainly in Texas, continued to decline. Kiln fuel costs have been declining and have been stable for electric power. The new production line at the Maryneal works in western Texas, is working at a regular rate, but requires some further fine tuning.     

The 50 per cent-controlled Mexican associate Corporación Moctezuma suffered from the depreciation of the Mexican peso and produced a turnover 5.3 per cent lower at EUR450.2m, but EBITDA improved by 11.2 per cent to EUR217.7m. Cement shipments in the nine months were maintained and the average price improved in local currency. Ready-mixed concrete deliveries were a little softer but continued to advance in local currency terms. The commissioning of the new production line at the Apazapan works, Veracruz, should take place this month.