German turnover declined by 1.7% to EUR 225m as higher prices were more than offset by lower volumes and divestment. Deliveries of cement and ready-mixed concrete in the group’s German operations declined by 4% and 6% respectively, though domestic cement deliveries were down by more than that but partially offset by exports. A 11% decline in German cement demand in the first half and a likely drop of between 6% and 8% for the year has led to the price recovery coming to a halt as some producers have become more concerned with volumes. Average prices are around EUR 5/t higher than the average achieved last year and unlikely to change much for the rest of the year, but Dyckerhoff plans a sizeable increase in 2006. The closure of the grey clinker production at the Amöneburg works at the end of 2005 is to be seen as a shift to more slag based products, which will be ground there.
RC Lonestar, the Buzzi Unicem subsidiary in which Dyckerhoff has a 48.5% stake, reported a 9.5% increase in cement deliveries and turnover attributable to Dyckerhoff increased by18.3% to EUR 142m, helped by prices being ahead by some 14%. Price increases have held and a further price increase is being planned for next January.
