Buzzi Unicem - November 2018

Buzzi Unicem's turnover for the first nine months was up by 0.2 per cent to EUR2137.4m (US$2438.7m), but ignoring exchange rate movements the increase would have been 1.6 per cent. Net debt at the end of September was 21 per cent lower than a year earlier at EUR723.4m. Capital investment in the period was 38.5 per cent higher at EUR218.8m. Cement deliveries were 3.1 per cent ahead at 20.9Mt, but ready-mixed concrete deliveries eased by 1.8 per cent to 9.1Mm³.

The Italian turnover was helped by the inclusion of the former Cementizillo assets for the full period, rather than just from 3 July in previous year, and increased export, and rose by 28.9 per cent to EUR345m. Net of these factors, the turnover would have been marginally lower. Ready-mixed concrete deliveries declined as the number of batching plants was reduced but prices recovered. On a like-for-like basis, turnover would have declined by 2.2 per cent. 

Turnover in Germany improved by 3.9 per cent to EUR465.4m, helped by the acquisition of Seibel & Sohne and increased sales of oil-well cement and the average price improved. On a like-or-like basis the increase would have been 1.3 per cent.  Ready-mixed concrete deliveries declined, but the average price improved. Turnover in Luxembourg and The Netherlands improved by 5.9 per cent to EUR145.1m. Cement and clinker shipments were lower, but prices were ahead. Ready-mixed concrete deliveries significantly improved and prices showed some recovery. 

The Polish turnover was 13.7 per cent higher at EUR85.2m, helped by a positive exchange rate effect, without which the increase would have been 13.3 per cent. Cement shipments were ahead and ready-mixed concrete deliveries showed a more notable improvement. Prices improved in both cement and concrete. The Czech cement volume improved and prices slightly better. Ready-mixed concrete volumes in the Czech Republic and Slovakia were again ahead and average prices improved. Turnover rose by 13.5 per cent to EUR123.4m, helped by the exchange rate movement, without which the increase would have been 10.3 per cent.

Ukrainian cement shipments showed a double-digit volume reduction, while local prices rose in a high inflation environment. The ready-mixed concrete operations showed further growth. The turnover declined by 13.2 per cent to EUR63.6m.  In Russia the demand for oil-well cement weakened, but overall cement volumes were ahead. The average unit price in local currency were ahead. The turnover eased by 0.6 per cent to EUR144.8m, while in local currency there would have been a 12.2 per cent advance.   

US turnover declined by 7.2 per cent to EUR791m, made worse by an unfavourable exchange rate effect. At constant exchange the turnover would have been just 0.5 per cent lower. Cement deliveries suffered from extremely bad weather in September, but prices in local currency remained favourable. Ready-mixed concrete volumes, which are mainly in Texas, suffered notably from the bad weather.      

The 50 per cent-controlled Mexican associate Corporación Moctezuma suffered from a further 8.2 per cent depreciation of the Mexican peso. The company registered a 9.4 per cent decline in turnover to EUR479.6m, while in local currency there was a 1.9 per cent reduction. Cement shipments in the nine months were broadly stable and ready-mixed concrete deliveries remained weak, but prices improved in local currency.