Italcementi’s profits drop by four-fifths

Italcementi’s turnover edged ahead by 1.3% in 2011 to €4720.5m but the underlying EBITDA came down by 17.2% to €697.3m and impairment charges saw the trading profit drop by 65.2% to €129m. Net financial charges were reduced by 10.2% to €84.7m. A 39.9% reduction in exceptional costs and an increased contribution from the Canadian associates left the pre-tax profit 80.8% down at €53m, while at the net attributable there was a €3.1m loss compared a profit of €45.8m.

Net debt at the end of 2011 was reduced by 24.4% tower at €1,675.2m, reducing the gearing level from 44.7% to 34.2%,  Shipments of cement and clinker declined by 1.9% to 51.1Mt in the year, but the aggregates tonnage increased by 3.7% to 38.1Mt while the underlying ready-mixed concrete volume improved by 0.8% to 14.5m m³.

The re-consolidation of Calcestruzzi led to a 33,2% jump in Italian turnover to €918.1m and with heavy the loss-making Calcestruzzi on board, there was a €12.6m loss at the EBITDA level. With further heavy charges, the trading loss increased by 16.2% to €142.4m. Cement deliveries declined by a further 6%, but cement prices showed a reasonable recovery. Sales of aggregates declined by 4.1% and ready-mixed concrete deliveries were off by 2.7%.

The French and Belgian turnover improved by 6.4% to €1.589.7m, but higher costs and pressure on prices led to a 4.8% reduction in the EBITDA to €302.8m. Cement and clinker sales rose by 6.4% in France and by 8.4% in Belgium, including exports. The aggregates shipments rose by 5.6% in France and by 2.7% in Belgium, while ready-mixed concrete deliveries advanced by 10.5% in France and by 15.6% in Belgium.

In Egypt, turnover fell by 30.0% to €551.8m, reflecting the political upheaval increased competitive capacity and a weaker Egyptian pound and the EBITDA dropped by 52.1% to €129.6m. In spite of come exports being achieved, the cement and clinker volume declined by 10.9%, while ready-mixed concrete deliveries fell by 20.1%. 

In contrast with Egypt, Morocco performed well. Turnover improved by 8.3% to €352.2m and the EBITDA rose by 21.1% to €152.2m. Domestic deliveries rose by 8.1% and, including clinker exports, the production increased by 9.1%.