Buzzi Unicem’s net profit drops by 74.7%

Buzzi Unicem’s net profit drops by 74.7%
12 August 2009

Buzzi Unicem’s first half turnover declined by 22.6% to €1,346.0m and the underlying EBITDA fell by 50.8% to €217.4m before an exceptional credit of €31.6m.  For the full year, Buzzi Unicem is currently looking for a reduction in the running EBITDA of around 40%.  The trading profit was down by 59.9% to €136.8m and, after a 59.6% increase in the interest charge, the pre-tax profit dropped by 74.7% to €80.3m and the net attributable profit by 75.9% to €40.6m.  Net debt increased by 48.7% to €1,283.8m to give a gearing level of 48.9%, but capital expenditure was 48.2% lower at €201.7m. 

The cement volume fell by 12.6% to 12.6m tonnes, with the main reductions taking place in the Ukraine, Russia, the Czech Republic and the USA, while ready-mixed concrete deliveries declined by 18.9% to 6.84m m³

The reduction in cement and clinker volumes in Italy was limited to 15.0%, thanks to additional grinding centres having been acquired from Cemex, which has now withdrawn from Italy.  In ready-mixed concrete there was a 16.2% volume reduction in the period.  Buzzi Unicem’s Italian turnover fell by 16.6% to €372.1m and the EBITDA dropped by 62.5% to €33.6m.  Costs for kiln fuel and electric power did fall somewhat in the period, but remained high.

In Germany, Dyckerhoff’s turnover declined by 14.5% to €247.1m and the EBITDA fell by 45.9% to €25.2m, before crediting release of provisions, essentially the over-provision of a cartel fine.  Domestic cement deliveries as well exports to Poland and Russia dropped, but there was an increase in exports to The Netherlands.  Ready-mixed concrete deliveries declined by 23.0%, but domestic prices improved both for cement and ready-mixed concrete.  Luxembourg cement and clinker volumes were 17.0% lower, though prices improved by an average 4.2%.  The turnover declined by 13.5% to €45.9m and the EBITDA fell by 26.6% to €5.6m.  The Dutch turnover declined by an underlying 7.6% to €54.9m while the EBITDA dropped by 78.6% to €0.9m, as ready-mixed concrete and aggregates fell by respectively 18.2% and 31.8%.
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