Buzzi Unicem reports good performance in Russia, Czech Republic and Italy

Buzzi Unicem reports good performance in Russia, Czech Republic and Italy
10 November 2017

Buzzi Unicem's turnover for the first nine months was 6.7 per cent higher at EUR2133.4m, but no EBITDA or other profit numbers have been given this time. Net debt at the end of September was 2.8 per cent lower at EUR915.2m compared with a year earlier. Capital investment in the period was 10.7 per cent lower at EUR158m. Cement deliveries were 4.1 per cent ahead at 20.3Mt and ready-mixed concrete deliveries improved by 4.8 per cent to 9.2Mm³.

The Italian turnover showed a recovery and rose by 13 per cent to EUR316.1m. Helped by the consolidation of the Zillo Group from 3 July and increased export volumes, shipments of cement and clinker showed a notable increase. Ready-mixed concrete deliveries also benefitted from the increased size of the business and volumes grew, but prices softened. On a like-for-like basis, turnover would have advanced by 5.3 per cent.

Turnover in Germany improved by 4.3 per cent to EUR448.1m. Cement deliveries improved, particularly for oil-well cement, while the average price was marginally ahead. Ready-mixed concrete deliveries rose by less than for cement, while the average price recovered. Turnover in Luxembourg and The Netherlands improved by four per cent to EUR137m and cement and clinker shipments increased and prices were slightly ahead. Ready-mixed concrete deliveries improved, but prices were slightly lower.  

The Polish turnover emerged two per cent higher at EUR74.9m, helped by a positive exchange rate. Cement shipments were little changed, while ready-mixed concrete deliveries declined, but prices improved in both cement and concrete, and there was a positive exchange rate effect. The Czech cement volume improved, while prices were stable. Ready-mixed concrete volumes in the Czech Republic and Slovakia were ahead and prices improved. Turnover rose by 7.1 per cent to EUR108.7m, helped by the exchange rate movement, without which the increase would have been 5.6 per cent.

Ukrainian cement shipments weakened in the third quarter after a strong first half, while local prices rose in a high inflation economy. The modest ready-mixed concrete operations showed growth. The turnover showed a growth rate of 21 per cent to EUR73.3m. In Russia strong demand for oil-well cement enabled volumes in the period to show some increase. The average unit price in local currency marginally improved. The turnover increased by 22.9 per cent to EUR145.7m.   

The United States turnover was ahead by 3.5 per cent to EUR860.5m, helped by a EUR1.6m favourable exchange rate effect. Cement deliveries had the benefit of increased demand for oil-well cement, while otherwise the tendency was mixed, depending on the area and Texas and some other markets suffered from hurricane damages in the third quarter. Prices did improve. Ready-mixed concrete volumes, which are mainly in Texas, suffered from the hurricane continued, but volumes and prices were only modestly down.          

The 50 per cent-controlled Mexican associate Corporación Moctezuma suffered from a 2.8 per cent depreciation of the Mexican peso strong earthquakes during September, fortunately, the company did not suffer any damage. The company registered a 17.6 per cent increase in turnover to EUR529.3m. Cement shipments in the nine months showed an improvement thanks to the gradual introduction of the new capacity at the Apazapan works, and local prices have improved over the past year.  Ready-mixed concrete deliveries declined compared with a year ago, but prices improved.   

Published under Cement News