Vicat advances well in the USA but France, Italy and Africa weaken

Vicat advances well in the USA but France, Italy and Africa weaken
04 November 2015


Vicat's turnover for the first nine months of the year improved by 1.9 per cent to EUR1883m, which represents an underlying decline of 5.3 per cent. The gearing level was reduced from 46.8 per cent at the end of September last year to 43.7 per cent this time.

Turnover in cement was 2.5 per cent higher at EUR1,157m, which represented 53.9 per cent of the group total. Cement deliveries declined by 4.4 per cent to 15.13Mt. The aggregates and concrete turnover improved by 1.8 per cent to EUR682m, or 31.8 per cent of the group total, with shipments of aggregates declining by 4.8 per cent to 15.43Mt and deliveries of ready-mixed concrete easing by 0.1 per cent to 6.26Mm³. The turnover from other activities was 0.9 per cent lower at EUR306m or 14.3 per cent of the group total.

France
The French consolidated turnover declined by 9.6 per cent to EUR581m in the nine months, with the cement turnover declining by 7.3 per cent to EUR255m though volumes were just over one per cent lower. The third quarter saw turnover decline by 6.2 per cent as volumes were off by 3.3 per cent. Aggregates and concrete turnover declined by 14.4 per cent to EUR277m, with selling prices slightly lower in concrete but improved marginally in aggregates.

Volumes declined by just under 10 per cent in aggregates and by three per cent in ready-mixed concrete. Other products and services saw turnover ease by 1.3 per cent to EUR172m.

Rest of Europe
Turnover in the rest of Europe improved by 3.4 per cent to EUR328m, but declined by 9.4 per cent on a comparable basis. The Swiss turnover improved by five per cent thanks to the strength of the Swiss currency but declined by 8.4 per cent in local currency.

Cement deliveries declined by around five per cent, with turnover improving by 7.7 per cent, with third quarter volumes registering a reduction in of just under 4 per cent. Concrete and aggregates turnover improved by 2.4 per cent, but at an underlying level fell by 10.7 per cent, with volumes declining by almost 10 per cent in aggregates but by a more modest three per cent in ready-mixed concrete. In pre-cast concrete, turnover declined by an underlying 7.6 per cent to EUR106m, essentially reflecting a drop in the number of railway sleepers sold. Italian turnover fell by 29.9 per cent as volumes were off by almost 27 per cent and prices were slightly lower.

United States
In the United States, turnover rose by 41.5 per cent to EUR260m, with the underlying improvement being 16.3 per cent. The cement volume advanced by more than 14 per cent, notably in the South-East. Selling prices improved, by so in California than the southeast. The ready-mixed concrete turnover improved by an underlying 13.1 per cent and volumes increased by almost 9 per cent. California saw a more important volume growth than did the southeastern states. In the third quarter, turnover advanced by 12.7 per cent as volumes improved by almost 7 per cent.  

Asia
Turnover in Asia increased by 9.5 per cent to EUR442m, but at unchanged exchange rates the growth would have been just 1.4 per cent. The Turkish turnover was up by 0.9 per cent to EUR206m, and the turnover in cement was up by 1.3 per cent and the volume was up by almost three per cent helped by good demand in the Ankara area. The turnover in concrete and aggregates improved by 7.1 per cent, with volumes rising by 10 per cent in aggregates and by almost 13 per cent in ready-mixed concrete, though prices eased.

Indian turnover improved by 18.4 per cent to EUR206m. Higher prices more than made up for a near 15 per cent reduction in volumes to just over 3Mt. In Kazakhstan, turnover increased by 8.4 per cent to EUR64m with volumes improving by almost 9 per cent, but pricing was under pressure from Russian imports.   

Africa and Egypt
In Africa and Egypt, underlying turnover fell back by 14.0 per cent to EUR272m. The Egyptian turnover showed an underlying 11.4 per cent decline to EUR92.2m and volumes were stable for the period as a whole, but declined by 18 per cent in the third quarter as prices weakened and volume came off by seven per cent, in part reflecting the change over to burning coal.

Turnover in western Africa declined by 13.6 per cent and volumes fell by some 12 per cent as a new competitor entered the market. The third quarter saw turnover decline by 22.3 per cent as volumes came off by 21 per cent, but the price reduction was fairly modest.

Published under Cement News

Tagged Under: Results France Europe Vicat