Cimpor: Spanish expansion offsets Portuguese decline

In 2003, Cimpor generated a turnover of €1,360.9m, an increase of 3.3 per cent on cement and clinker sales 11.1 per cent higher at 18.29Mt. Cement capacity, based on using own clinker, now stands at 23.4Mt, following the commissioning of a new production line in Egypt earlier this year. The increased volumes were entirely attributable to acquisitions and without these the tonnage volumes would have been down by some seven per cent.  The operating profit at the EBITDA level edged ahead by 0.2 per cent to €512.5m, but a 52.2 per cent increase in the net interest charge to €35.5m left the running profit before tax 2.7 per cent lower at €253.4m.

The Portuguese construction market weakened and cement consumption fell by some 17 per cent.  The group’s turnover in Portugal declined by 8.6 per cent to €596.8m and the EBITDA fell by 17.7 per cent to €211.4m. Cement and clinker sales by the Portuguese plants were 3.7 per cent lower at 5.85Mt as some of the domestic volume lost was made up by clinker supplies to the new Spanish operations.  Cement sales in Spain rose by 141.7 per cent to 3.74Mt, thanks to the Andalusian business acquired from Lafarge. The Spanish turnover advanced by 76.3 per cent to €300.1m, with the kingdom thus becoming second largest contributor to turnover and the third largest source of profit.  The EBITDA from Spain was 52 per cent higher at €84.2m.