Italcementi Q3 results to rise as overseas ops offset weak Italy

Italcementi SpA is expected Friday to announce higher sales and results, with a strong performance from its overseas operations more than offsetting weak Italy operations, analysts said. 

Net profit is seen at EUR100-124m, against EUR92.7m reported a year earlier, EBIT EUR244-280m, against EUR221.1m, EBITDA EUR326-365m, from EUR316.2m, and sales EUR1.279-1.325bn, from EUR1.170bn. 

’Egypt should be a strong driver in the second half and in 2006, due to strong growth and the effect of the Suez restructuring and synergies between Suez and ASEC,’ said Exane BNP Paribas. 

Exane in its note said the group’s goal is to simplify the existing structure in Egypt, including with Suez’s 66% quoted unit Tourah, and to end up with one listed company. 

Underlying operations in Egypt reported a rise in first-half EBITDA margin of 50%, with ASEC’s margin up 9% points and Suez up 6, it said, citing an end-October company presentation. 

’The outlook for the second half is even better as Suez Cement will benefit from higher selling prices,’ it said, adding domestic prices were frozen until third week of Sept under a government accord.  ’Also, in 2006, the group (in Egypt) should benefit from the effect of restructuring and synergies between Suez and ASEC,’ it said.