Italcementi’s volumes fall in Greece, Egypt Bulgaria and Spain

Italcementi’s volumes fall in Greece, Egypt Bulgaria and Spain
08 November 2011

Italcementi’s turnover for the first nine months edged ahead by an underlying 0.8% to EUR3,600.2m, but the running EBITDA came down by 15.2% to EUR564m. The trading profit fell by 25.3% to EUR236.2m and the net interest charge came down by 38.6% to €56.7m.  The reduction in the pre-tax profit was limited to 13.8% at EUR198.6m. Net profit was boosted by a EUR107.4m gain from the sale of discontinued activities and rose by 59.5% to EUR 212.8m, with the net attributable profit rising almost seven-fold to EUR123.20m, compared with just €18.5m a year earlier. Net debt at the end of September was 0.5% lower than a year earlier at EUR2218.6m to give a gearing of 44.8% compared with 48.2% a year ago.  Capital expenditure in the period was reduced by 27.3% to EUR 266.3m.

Cement and clinker deliveries were off by 1.6% to 38.9Mt, with the reduction largely caused by a 33.2% reduction in the volume of cement trading to 2Mt.

Cement and clinker sales in western Europe eased by 1.6% to 14.48Mt. Italian cement volumes were down by 4.9% to 6.8Mt, but prices have begun to recover. The 31.7% increase in turnover EUR 698.7m largely reflects the re-consolidation of Calcestruzzi, which also led to a more than doubling of the underlying EBITDA loss to EUR7.4m. In France and Belgium, turnover recovered by 5.3% to EUR1218.1m but EBITDA came down by 9.6% to EUR231.5m. French cement volumes improved by 5.9Mt, while in Belgium there was a 4.4% improvement, in spite of lower clinker exports. Group cement deliveries in Spain were down by 11.6%, but higher exports limited the overall volume decline to 4.6%. Greek cement shipments fell by 32.1%, with the third quarter drop being 43.8%.

The Arab countries and Black Sea regional turnover fell by 18.2% to EUR783.5m and the EBITDA declined by 18.0% to EUR253.1m. Cement shipments declined by 6.1% to 12.08Mt. In Egypt, by far the biggest market, turnover fell 30.3% to EUR425.7m and the EBITDA dropped by 42.5% to EUR108.1m, with domestic cement volumes being down 12.0% as a result of weak demand and increased production capacities. Moroccan cement and clinker shipments 8.2% in the first nine months, with domestic deliveries being ahead by 6.7% and prices improving in spite of the arrival of a new competitor. Profitability was additionally helped by reduced clinker purchases as the new Ait Baha works produced a greater volume and at a lower cost, with the EBITDA advancing by 16.8% to EUR115.5m on a turnover up by 6.4% to EUR265.0m. In Kuwait, cement deliveries rose by 6.7%, though competitive pressure increased in the third quarter.

Asian cement deliveries improved by 2.1% to 8.48Mt and turnover advanced by 16.8% to EUR385.4m, while the EBITDA recovered by 58.0% to EUR74.3m. Cement and clinker volumes rose by 5.3%, but the commissioning of additional capacities led to a 12.7% reduction in the third quarter. A new 3Mt cement works is being planned for North Karnataka to the northwest of where the company is not presently active. An investment of about US$400m is envisaged by Italcementi, which will own a 74% stake in the new works, scheduled for completion in 2015 and take the group’s Indian capacity to almost 9Mt. The Thai turnover increased by 15.1% to EUR151.3m and the EBITDA just over doubled to EUR22.7m. Total sales volume grew by 4%, with exports being curtailed because of the strength of domestic demand.  In Kazakhstan, additional modern capacity coming on-stream led to a 12.3% reduction in the volume sold. 

The North American turnover declined by 6.2% to EUR297.5m and the EBITDA tumbled by 82.7% to EUR2.4m as a result of fierce competition and higher transport costs. However, cement deliveries did improve by 4.3% to 3.15Mt and aggregates deliveries rose strongly by 32.6% to 0.98Mt, thanks to improved road-building activity in Canada.   
Published under Cement News