Italcementi incurs substantial trading losses in Italy and Spain

Italcementi incurs substantial trading losses in Italy and Spain
06 March 2013


Italcementi has reported a 2012 trading loss compared to a profit in 2011 as the Italian cement major incurs substantial losses in its domestic market and Spain. Italian prices, however, see important improvements.

Turnover for the year declined by 3.8 per cent in 2012 to €4480.1m but underlying EBITDA was down by 9.8 per cent to €632.4m. After an impairment charges that jumped from €134.3m to €309.4m, last year's trading profit of €138.9m was turned into a €150.9m loss.

Net financial charges were 0.9 per cent higher at €83.0m. A 91.2 per cent drop in exceptional costs and a 40.4 per cent reduction in the contribution from associates gave a pre-tax loss of €224.2m compared with a pre-tax profit of €65.5m a year ago. The net attributable loss jumped from €3.1m to €395.8m.

Capital investment was further reduced by 6.5 per cent to €369.6m in 2012 and spending on acquisitions dropped sharply again, with a 75.9 per cent cut5 to €0.7m. Net debt at the end of 2012 was 4.5 per cent lower at €1998.3m, with the gearing level increasing 59.9 per cent to 67.4 per cent, or from 42.8 per cent to 47.1 per cent if including minorities in the equity. 

Shipments of cement and clinker declined by 6.6 per cent to 45.9Mt in the year, while the aggregates tonnage fell by 10.8 per cent to 34Mt and ready-mixed concrete deliveries fell by the same percentage to 12.9Mm³.

Italian turnover declined by 12.9 per cent to €800m and underlying EBITDA loss doubled to €25.2m and the trading loss rose by 20.5 per cent to €171.6m. Cement deliveries dropped 24.6 per cent to 6.7Mt, but an important improvement was again seen in cement prices, which led to the Italian cement turnover increasing in spite of the volume drop and the underlying profitability improved. Losses were continued to be suffered in aggregates and concrete as volumes declined by 15.6 per cent in aggreagtes and by 22.6 per cent in ready-mixed concrete, while costs are continuing to be reduced.

The French and Belgian turnover came off by 5.5 per cent to €1501.7m and the underlying EBITDA declined by 13.2 per cent to €262.8m. Cement and clinker sales declined by seven per cent in France, while Belgian volumes fell by 10.2 per cent, or by 13 per cent if exports are included. Aggregates shipments rose by 5.6 per cent in France and by 2.7 per cent in Belgium, while ready-mixed concrete deliveries advanced by 10.5 per cent in France and by 15.6 per cent in Belgium.

In Spain, at trading loss of €177.4m was incurred, €156.2m of which related to impairment losses, while in Greece the trading loss was more than doublet to €43.5m. Trading losses were also incurred in Egypt (€24.2m), North America (€16.3m), Bulgaria and Kazakhstan. Elsewhere, profits were earned at the trading level.

Published under Cement News

Tagged Under: Pricing Italcementi Italy Spain Results