Italcementi forms joint venture with Arabian Cement Company

Italcementi forms joint venture with Arabian Cement Company
06 May 2005

Italcementi’s first quarter results were hit by the adverse March weather in Europe and turnover declined by 1.6% to EUR 990.2m, with the EBITDA falling by 14.2% to EUR 166.5m. Exception for Belgium, Thailand and parts of Italy, cement prices have moved ahead in all main markets.  With Ciments Français reported a virtually static turnover of EUR 667.7m, though 1.2% higher on a comparable basis, suggests that turnover in Italy fell by around 5.0% to some EUR 990m. Using the same basis for the EBITDA, would suggest that the Italian profit would have fallen by almost 32% to a little over EUR 40m.  In France, turnover was 3.7% lower at EUR 290m. Greece, where the group is principally active in the Athens market, reported a somewhat greater decline in domestic sales in the post-Olympic environment.  For the whole of the European Union, turnover declined by 3.7% to EUR 750.7m and the trading profit (EBIT) was off by 32.7% to EUR 63.7m.
In North America, the group recovered market share and had the benefit of higher prices in a strong market, giving rise to a 9.5% increase in turnover to EUR 92.0m and a trading profit of EUR 0.9m. The Asian operations reported a 2.8% decline in turnover to EUR 60m and the trading profit fell by 41.3% to EUR 8.7m, with Thailand experiencing lower prices on the domestic market and lower export volumes.  The other emerging markets, situated around the Black Sea and in North Africa, saw turnover increase by 10.7% to EUR 93.9m, with the trading profit declining by 4.2% to EUR 19m. Suez Cement will be added to the sphere of consolidation from the second quarter.
Looking at further developing its interests in the Middle East, Italcementi has concluded an agreement with the Saudi Arabian cement producer Arabian Cement Company with a view to develop joint ventures in the area.  The agreement covers a five year technical co-operation and trading agreement as well as a feasibility study for a new cement plant in Saudi Arabia to be owned jointly by the two groups.

Published under Cement News