Cimpor first half profits fall in the regions

Cimpor first half profits fall in the regions
15 September 2004

Cimpor’s turnover for the first six months of the year moved ahead by 3.7% to €678.4m while the operating profit at the EBITDA level fell by 7.5% to €228.8m.  The decline in the trading profit was more marked, with an 11.6% drop to €120.5m, but thanks to increased contributions from associates and an €16m benefit from a change in accounting policy, the running profit before tax actually rose by 9.9% to €131.05m. The cement and clinker volume for the group emerged 3.8% higher at 9.28m tonnes.   Capital spending during the period, including acquisitions, amounted to €67.4m, with Portugal, where a cement grinding plant is being built at Sines, representing €17.8m.  Other capital expenditure included €6.4m on the new production line in Egypt and €6.2m on a coal mill in Tunisia.

 Although the Portuguese cement and clinker volume rose by 9.1% to 3.12m tonnes, domestic deliveries were down by 1.2%.  This was more than compensated for by a more than doubling in export volumes. Aggregates sales volume in Portugal dropped by 13.9% to 3.75m tonnes, but ready-mixed concrete deliveries were 5.4% higher at 1.84m m©&hibar;.  The overall EBITDA from Portugal dropped by 14.5% to €91.5m and the margin fell from 36.4% to 31.3%, with turnover 3.5% lower at €267.9m.  Spain, where the EBITDA rose by 9.2% to €44.9m, emerged as the second largest contributor to profits, overtaking Brazil, and turnover was 18.3% ahead at €165.7m.  Cement deliveries were 18.6% higher at 2.07m tonnes and, helped by acquisitions, ready-mixed concrete volumes jumped by 48.6% to 1.21m m©&hibar; and the aggregates tonnage by 35.3% to 1.70m tonnes. Margins, however, declined from 29.3% to 26.6% in response to the increased weighting of the downstream businesses as well as producing more cement from imported clinker.

The difficult market conditions in Brazil led to a 29.0% drop in the EBITDA to €39.8m as lower prices took its toll on profits though cement the volume was 4.0% higher at 1.63m tonnes, with turnover down by 9.2% to €96.6m.  From the worst performer to the best: Egypt produced an 85.0% jump in EBITDA to €14.2m on a turnover 12% ahead at €28.6m.  This was entirely the result of a recovery in cement prices, at the volume was 7.0% lower at 1.02m tonnes.  In Tunisia, turnover was 2.3% lower at €26.8m on cement deliveries off by 1.7% to 0.74m tonnes, but the EBITDA improved by 12.2% to €7.3m. Further west, the impact of the cement tax left the turnover in Morocco 0.9% lower at €25.9m but cement deliveries were 1.4% higher at 0.40m tonnes and the EBITDA improved by 5.0% to €11.8m.

 Cimpor’s operations in southern Africa did well.  South Africa reported a 27.5% increase in turnover to €38.5m and a 35.3% advance in EBITDA to 17.6m on a cement volume 8.4% higher at 0.52m tonnes and a highly favourable pricing environment.  In Mozambique, cement deliveries were 4.2% higher at 0.28m tonnes, which gave rise to a 15.6% improvement in the EBITDA on a turnover that was 24.1% higher at €22.5m.

Published under Cement News