Buzzi Unicem hit by poor weather and early Holy Week

Buzzi Unicem hit by poor weather and early Holy Week
11 May 2018

Buzzi Unicem's first-quarter turnover declined by 8.4 per cent to EUR539.1m as a harsh winter took its toll in many countries. Net debt at the end of March was 3.9 per cent higher at EUR896.2m, while capital expenditure was increased by 6.3 per cent to EUR52.3m. Cement deliveries eased by 1.6 per cent to 5.1Mt, while group ready-mixed concrete deliveries declined by 6.3 per cent to 2.4Mm³. 

The Italian turnover improved by 8.3 per cent to EUR103m, thanks to the inclusion of the former Cementizillo facilities. Without these, there would have been a 10.1 per cent decline because of adverse weather and fewer working days. Cement prices, however, is showing signs of steadying. In ready-mixed concrete, volumes were lower, but prices are recovering.  

German cement volumes in grey cement were down and ready-mixed concrete deliveries were off to a greater extent, but favourable trends were being seen when it comes to prices. The turnover came down by 8.3 per cent to EUR110.3m. Luxembourg and The Netherlands turnover eased by 0.3 per cent to EUR39.01m as cement and clinker shipments weakened, but prices were slightly better, while in ready-mixed concrete both volumes and prices were improved. 

In Poland cement deliveries were lower, while ready-mixed concrete volumes were ahead and prices improved in both cement and concrete in local currency. The turnover improved by four per cent to EUR16.5m. Czech cement deliveries were higher and the local price was showing signs of some weakness. Ready-mixed concrete deliveries in the Czech Republic and Slovakia were ahead, both in terms of volume and price and the turnover improved by 14.8 per cent to EUR26.9m. 

The Ukrainian turnover recorded a 10.2 per cent decline to EUR11.7m as cement shipments declined, but turnover in local currency was well ahead, reflecting the high rate of inflation. In Russia turnover declined by 3.4 per cent to EUR32.7m, largely reflecting currency movements, and measured in local currency there was an 8.1 per cent increase.

The United States operations saw turnover decline by 18.8 per cent to EUR208.6m, in part reflecting the weakness of the US dollar, but cement deliveries were also lower because of the weather impact in many areas.  Ready-mixed concrete deliveries suffered from the weak market conditions in Texas was well as some price weakness. There was an unfavourable EUR32.2m exchange rate effect and measured in dollars the sales reduction would have been 6.2 per cent.

The Mexican associate Corporación Moctezuma registered a 12.1 per cent reduction in turnover to EUR151.1m. Cement deliveries were lower, but prices were higher in local currency, but ready-mixed concrete deliveries were lower though prices improved.

Published under Cement News