Buzzi Unicem increases first half pre-tax by 48 per cent

Buzzi Unicem increases first half pre-tax by 48 per cent
14 September 2005

Buzzi Unicem’s first half turnover rose by 5.2 per cent to EUR1,382.2m and the EBITDA advanced by 8.2 per cent to EUR328.1m. Helped by a 25.5 per cent drop in net finance costs to EUR69m and an increased contribution from associates, the pre-tax profit staged a 48.3 per cent advance to €162.3m. Net debt at the end of June stood at EUR1223.5m to give a gearing ratio of 65.3 per cent. Overall cement deliveries rose by 3.2 per cent to EUR15.6Mt in the period, while the ready-mixed concrete production was 1.5 per cent higher at 7.4m m³.
Italian cement deliveries recovered in the second quarter and first half deliveries rose by 1.3%. However, strong competition led to decline in the average cement price achieved in spite of higher production costs.  Ready-mixed concrete deliveries were 4.2% lower, reflecting a reduced level of public sector civil engineering work though prices were slightly higher than in the comparative period. Overall turnover in Italy declined by 1.2 per cent to €476.2m while the EBITDA dropped by 21.7 per cent to €101.2m. €20.9m of the €28.2m drop in the Italian EBITDA was attributable to margin pressure in the cement business.
In Germany, turnover declined by 2 per cent to €24.5m as a further recovery in cement prices was offset by volumes being some 4 per cent lower in cement and down by six per cent in concrete, while the underlying EBITDA was off by 9 per cent at €22.3m.  In Luxembourg, turnover was little changed at €70.9m, in spite of cement and clinker shipments rising by 18.3 per cent as there was a strong increase in clinker exports to France while domestic cement deliveries were down a little.  Apart from the unfavourable product mix, higher electricity, kiln fuel and maintenance costs were incurred and the EBITDA declined by 15.9 per cent to €12.2m.

Published under Cement News