Cementir boosts pretax profit

Cementir boosts pretax profit
11 November 2014

Cementir's turnover for the first nine months of 2014 declined by 3.7 per cent to EUR714.7m as the Turkish and Egyptian currencies declined against the euro and Italian volumes fell further.  

EBITDA, however, did increase by 10 per cent to EUR127.7m and the trading profit advanced by 31.7 per cent to EUR66.8m. After a net financial charge that was reduced by 72.4 per cent to EUR3.1m, the pre-tax profit jumped by 60.7 per cent to EUR63.7m compared with EUR39.7m a year ago. 

Net debt at the end of September was 13.1 per cent lower at EUR322.2m to give a gearing level of 29.2 per cent compared with 34.8 per cent a year earlier. 

In the Nordic area, turnover was slightly ahead in local currencies. Sales of cement and concrete improved by around three per cent in Denmark leading to a EUR6m increase of turnover, but ready-mixed concrete deliveries were lower in Norway and in the Malmö region in southern Sweden. In Italy, cement and concrete deliveries declined further, leading to a drop in turnover exceeding 20 per cent. In England, Neales Waste Management commissioned a new mechanical waste management system increasing the amount of alternative fuel becoming available..

The Turkish turnover rose by around 20 per cent in local currency, but the lira lost over 19 per cent of its value against the euro. The amount of cement sold was 3.4 per cent ahead and domestic selling prices rose for both cement and ready-mixed concrete. The waste management company Sureko increased turnover by three per cent and achieved a substantial improvement in profits. Egyptian turnover improved by some six per cent in local currency, but fell in euro terms. Far Eastern revenue was stable in local currency, but there was a 3.5 per cent reduction on conversion, while prices achieved by the Malaysian business improved. 

Grey and white cement volume edged ahead by 0.3 per cent to 7.33Mt.  The aggregates tonnage improved by 9.8 per cent to 2.54Mt but deliveries of ready-mixed concrete declined by 4.2 per cent to 2.64Mm³. The workforce was further reduced by 2.5 per cent to 3086 compared with a year earlier. 

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Tagged Under: Results Europe Italy Cementir