Vicat expects improved Europe, US, India and west African markets

Vicat expects improved Europe, US, India and west African markets
03 May 2017

Vicat's first-quarter turnover eased by 0.5 per cent to EUR551m, which represents an underlying advance of 1.4 per cent.

The cement turnover declined by three per cent to EUR283m, as cement shipments advanced by 1.2 per cent to 4.89Mt. Before inter-sector eliminations, the cement turnover amounted to EUR335m. The turnover in concrete and aggregates was three per cent ahead at EUR204m, which represents an underlying decline of 2.5 per cent, as aggregates shipments rose by 3.7 per cent to 5.01Mt while ready-mixed concrete deliveries eased by two per cent to 1.85Mm³. Other products and services generated an unchanged turnover at EUR65m. A at the consolidated level there was a 0.9 per cent reduction. The net debt ratio declined from 46 to 40 per cent of shareholders' funds.

The French turnover improved by 7.3 per cent to EUR196m, as weather conditions were more favourable than in the previous year and industry dynamics also improved. The turnover in cement declined by 1.1 per cent but rose by 1.9 per cent on a consolidated basis and volumes declined by one per cent because of less good weather. Concrete and aggregates turnover rose by 14.9 per cent, with aggregates shipments rising by in excess of five per cent but ready-mixed concrete deliveries eased by around three per cent. Other products and services saw turnover improve by 1.1 per cent. 

Elsewhere in Europe, turnover eased by 0.4 per cent to EUR80m and at constant exchange rates the reduction was 2.8 per cent. The Swiss turnover declined by 3.2 per cent at constant parameters. Underlying cement sales improved by 10.1 per cent, as cement volumes advanced by more than 11 per cent about selling prices were lower. Turnover aggregates and ready-mixed concrete showed an 11.4 per cent decline with volumes declining by almost six per cent in aggregates and by almost three per cent in ready-mixed concrete. The pre-cast concrete turnover came off by 3.1 per cent. The Italian turnover showed a 9.4 per cent improvement as volumes were 10 per cent higher, with prices showing a slight improvement.

In the United States, turnover improved by 5.4 per cent to EUR84m, with the underlying increase being 1.8 per cent. The underlying cement turnover rose by 13.7 per cent as volumes advanced by almost three per cent. Volumes rose in the southeast but were only stable in California, which suffered from heavy rainfall in the period. Prices were ahead in both California and in the southeast. In ready-mixed concrete, turnover declined by 4.8 per cent as volumes declined by almost seven per cent with most of the reduction being seen in California. The prices achieved were slightly higher, more so in than in southeast than California.

Turnover in Turkey, India and Kazakhstan declined by 4.4 per cent to EUR110m, but on unchanged exchange rates the reduction was a more modest 1.7 per cent. The Turkish turnover showed an underlying decline of 9.2 per cent to EUR31.7m. The cement turnover declined by 6.7 per cent and cement shipments came off by close to five per cent, as there was a steep decline in demand in the Konya region. Prices also declined in the Konya region but showed a slight improvement in the Bastas markets. The turnover in aggregates and concrete came down by 9.2 per cent as volumes declined by more than 13 per cent in ready-mixed concrete and by almost 10 per aggregates.

The Indian turnover improved by 4.6 per cent to EUR758m. The volumes sold increased by in excess of eight per cent to some 1.3Mt and prices improved slightly thanks to an improved geographical mix. In Kazakhstan turnover declined by 13.6 per cent to EUR4.1m, but at constant exchange rates the reduction was 24.4 per cent. The Kazakh volumes fell by almost 33 per cent because of a harsh weather, but selling prices were largely maintained.

Africa and the Middle East saw turnover decline by 15.6 per cent, to EUR81m. The Egyptian turnover increased by an underlying 31.8 per cent to EUR20.3m, but the November devaluation let to a 38.4 per cent reduction in the reported valuation. Delivery volumes increased by almost 18 per cent. In west Africa, turnover declined by 3.4 per cent and cement volumes fell by in excess of 11 per cent, but selling prices remained stable in Senegal, improved in Mali but declined in Mauritania. Aggregates prices improved slightly in Senegal.

Published under Cement News

Tagged Under: business results France Vicat