Cementir boosts white cement volumes in China and Malaysia
Cementir Holding increased turnover in 2012 by 6.4 per cent to €976.2m and the EBITDA was ahead by 11.2 per cent to €138.1m as the margin improved from 13.3 per cent to 14.1 per cent.
Depreciation and impairment provisions were 2.2 per cent higher at €89.9m, giving a trading profit advance of 33.2 per cent to €48.2m. After a net financial charge 3.5 per cent lower at €21.8m, the pre-tax profit rose by 83.4 per cent to €28.6m. After a 20.7 per cent reduction in the tax charge and an 11.3 per cent increase in minorities, the net attributable profit was quintupled to €16.5m.
Net debt at the end of the year was 4.3 per cent higher at €373m to give a gearing level of 36 per cent, compared with 33 per cent at the end of 2011. Capital expenditure amounted to €87.5m and included investments in increasing energy efficiency and environmental compliance as well as in the waste management business that is there to secure secondary kiln fuel.
The Nordic region is the group's largest, led by Aalborg Portland, and turnover here was ahead by just over three per cent, thanks to a strong performance in Norway that more than offset a certain weakness in the group's Danish and Swedish markets. The Italian market continued to decline and domestic deliveries of cement and of ready-mixed concrete were substantially lower. The overall turnover was only off by 5.4 per cent, thanks to higher prices and a modest increase in exports.
Cimentas Izimir Cimento Fabrikasi in Turkey experienced a slight reduction in turnover because of lower export volumes, though at slightly better prices. In Egypt, export revenue improved by around €10m as increased amounts of white cement were exported. Far Eastern white cement shipments increased, with both the Malaysian and the Chinese operations selling higher volumes, both domestically and into export markets.
Total group shipments of grey and white cement declined by 6.1 per cent to 9.83Mt. The aggregates volume fell by nine per cent to 3.49Mt, while ready-mixed concrete deliveries came down by 6.8 per cent to 3.5Mm³. Cementir's management expects to generate a turnover in excess of €1,000m and an EBITDA of more than €150m in 2013. Shipments of white cement from plants in China, Malaysia and Turkey are increasing, but the situation in Egypt is uncertain. Capital investment for the current year has been set at €73m, which would suggest a reduction in the net debt by the end of the year to below €350m.
