Cementir advances in Denmark and Sweden

Cementir advances in Denmark and Sweden
12 May 2015

Cementir's first quarter turnover eased by 0.9 per cent to EUR204.7m and the EBITDA came off by 1.6 per cent to EUR24.2m, primarily reflecting difficult market conditions in Turkey and Egypt. At constant exchange rates, the turnover would have been down by 4.1 per cent to EUR198.0m. The trading profit declined by 31.5 per cent to EUR3.1m, but at the pre-tax level there was an improvement to EUR3.8m from a loss of EUR1.8m. 

Net debt at the end of March was 10.2 per cent lower than a year earlier at EUR326.3m to give a gearing level of 28.34 per cent as the equity increased by 12.5 per cent.

Shipments of grey and white cement declined by 11.8 per cent, the same percentage by which it had increased a year earlier, to 1.85Mt and ready-mixed concrete deliveries were down by 6.9 per cent to 0.80Mm³, but dispatches of aggregates did improve by 14.8 per cent to 0.79Mt.

The Italian volumes in cement and concrete were slightly ahead, but prices continued to decline, with the resultant turnover being virtually unchanged at EUR4.5m. The Nordic turnover increased by around three per cent as revenue improved in both Denmark and Sweden, but declined Norway, where ready-mixed concrete volumes fell by some 18 per cent though prices were maintained. In Denmark, a milder winter led to increases of two per cent in cement and of 14 per cent in ready-mixed concrete, while in Sweden volumes improved by 13 per cent in ready-mixed concrete and by 19 per cent in aggregates.

In Turkey, cement deliveries declined by 23 per cent and ready-mixed concrete deliveries by 16 per cent as turnover in local currency was down by some 13 per cent. Selling prices rose faster than inflation. Egyptian selling prices improved, but volumes were off by almost 20 per cent and turnover in local currency came off by almost 11 per cent as political and social instability remained. 

The Far Eastern turnover was broadly stable. In China lower domestic deliveries were offset by in increase in exports. In Malaysia, volume was around 10 per cent lower because of delays in bringing the now line on stream, but this was largely offset by in improvement in prices, notably in export markets, with the result that turnover declined only slightly.

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