Italcementi advances in India and Morocco

Italcementi advances in India and Morocco
08 May 2015

Italcementi's first-quarter turnover improved by 5.1 per cent to EUR980.5m while the running EBITDA eased 0.4 per cent to EUR95.2m. The trading loss was increased by 13 per cent to EUR4.7m and net interest charge rose by 2.6 per cent to EUR34m. The pretax loss declined by 23.1 per cent to EUR34m but a higher tax charge led to a 7.5 per cent increase in the net attributable loss to EUR73.4m.

Net debt at the end of March was 8.7 per cent higher at EUR2343.9m to give a gearing level of 57.7 per cent, compared with 56.3 per cent a year earlier. Capital expenditure in the period declined by 62.1 per cent to EUR63.4m as several projects were completed.

Group shipments
Group cement and clinker shipments declined by 1.3 per cent to 10Mt, with international trading activities showing a 15.2 per cent volume reduction to 0.7Mt. Turnover from cement and clinker trading declined by 11.7 per cent to EUR39.7m and  EBITDA more than trebled to EUR8.2m. Aggregates shipments were 7.1 per cent ahead at 7.4Mt while ready-mixed concrete deliveries declined by 2.1 per cent to 2.6m m³. 

Western European cement and clinker volumes declined by seven per cent to 3.1Mt. Consolidated aggregates shipments improved by four per cent to 6.7Mt while ready-mixed concrete deliveries declined by a further 5.7 per cent to 1.6Mm³. In France and Belgium, turnover declined by 8.6 per cent to EUR299.4m and EBITDA dropped by 52.8 per cent to EUR16.3m. Cement and clinker volumes fell by 8.4 per cent in France, while in Belgium the reduction (including exports) was a more modest 1.1 per cent. Prices fell in both countries. Aggregates shipments were 0.3 per cent ahead in France and Belgium, while ready-mixed concrete deliveries were down by 6.5 per cent and 3.3 per cent, respectively.

Italian cement and clinker volumes were off by 3.2 per cent and prices were notably lower than a year earlier. In spite of the lower volume and prices, EBITDA did show an improvement helped by EUR21.4m of carbon emission rights. Lower infrastructure works led to a 1.3 per cent reduction in ready-mixed concrete deliveries, but aggregate shipments rose by 34.8 per cent. Turnover declined 4.1 per cent to EUR130m and  EBITDA emerged at EUR13.7m.

Spanish turnover declined by 7.1 per cent to EUR23.1m. There was an EBITDA loss of EUR1.1m. while the trading loss emerged at EUR3.7m. Total cement and clinker volume fell by 13.8 per cent, though domestic cement deliveries did improve by 8.1 per cent. Aggregates volumes increased by 5.8 per cent and ready-mixed concrete deliveries by 10.8 per cent. In Greece, turnover was 13.2 per cent lower at EUR5.6m and EBITDA was EUR0.2m, as cement and clinker volume declined by 8.2 per cent as exports fell. Aggregates shipments were down by 19.4 per cent and ready-mixed concrete deliveries dropped 71.9 per cent. In Bulgaria, domestic cement and clinker shipments were 8.5 per cent lower, but overall volumes rose by 19.5 per cent thanks to exports. 

Egyptian turnover improved by 6.3 per cent to EUR146.3m, but EBITDA fell 42.3 per cent to EUR16.2m. Domestic cement deliveries declined by 2.4 per cent and including exports, overall volumes fell by 7.2 per cent. Ready-mixed concrete deliveries improved by 10.6 per cent. Moroccan turnover increased by 16.2 per cent to EUR88.5m and EBITDA improved by 23.2 per cent to EUR38m. Domestic cement and clinker volumes improved by 6.3 per cent, and higher exports allowed overall volumes to be increased by 6.7 per cent. Downstream volumes suffered from strong competitive pressures and deliveries fell by 21 per cent in aggregates and by 5.9 per cent in ready-mixed concrete. In Kuwait, cement deliveries rose by 64.4 per cent and ready-mixed concrete volumes by 12.2 per cent.

Turnover in Asia increased by 30.5 per cent to EUR167.4m and EBITDA improved by 62.9 per cent to EUR32.5m and the trading profit was more than doubled to EUR21.3m. In Thailand, turnover improved by 24 per cent to EUR85.7m and EBITDA rose by 9.2 per cent to EUR19.7m. Domestic cement and clinker deliveries rose by 1.2 per cent though prices fell, but exports were increased and the overall volume was ahead by 11.8 per cent. Ready-mixed concrete deliveries declined by 20.8 per cent. The group's Indian turnover rose by 37.6 per cent to EUR76.3m and the EBITDA more than doubled to EUR14.8m. Domestic cement and clinker volume declined by 17.2 per cent while export volumes declined by 11.1 per cent. In Kazakhstan, domestic sales rose by 22.7 per cent and ready-mixed concrete deliveries were more than doubled.

North American turnover rose 25.3 per cent to EUR76.9m and the seasonal loss at the EBITDA level was 28.2 per cent to EUR29.4m. Cement consumption increased in spite of a weak market in Puerto Rico. Cement volumes were unchanged to 0.6Mt. Aggregates shipments rose by 30.3 per cent to 0.2Mt while ready-mixed concrete deliveries were off by 1.8 per cent to 0.1Mm³.

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