Vicat hit by weaker exchange rates

Vicat hit by weaker exchange rates
07 November 2018

Vicat's turnover for the first nine months of the year advanced by 1.4 per cent to EUR1947m, which represents an underlying improvement of 7.6 per cent. The gearing level was reduced from 38.1 per cent at the end of September last year to 37.1 per cent this time. Turnover in cement was 1.8 per cent ahead at EUR1124m and represented 51 per cent of the group total. Cement deliveries improved by 3.1 per cent to 17.44Mt. The aggregates and concrete turnover eased by 0.6 per cent to EUR749m, or 34 per cent of the group total, with shipments of aggregates declining by five per cent to 17.16Mt and deliveries of ready-mixed concrete easing by 1.9 per cent to 6.93Mm³. The turnover from other activities was 4.3 per cent ahead at EUR333m or 15 per cent of the group total. 

The French consolidated turnover increased by 6.6 per cent to EUR709m in the nine months, with the cement turnover improving by 6.7 per cent to EUR282m. The cement volume was more than three per cent ahead. Aggregates and concrete turnover improved by 3.5 per cent to EUR352m. Aggregates volumes were almost three per cent ahead with prices showing an improvement. Ready-mixed concrete volumes were down by in excess of two per cent, but prices showed an improvement. Other products and services saw turnover advance by 13.6 per cent to EUR214m.

Turnover in the rest of Europe declined by 7.1 per cent to EUR2925m. The Swiss turnover came off by 9.6 per cent as a number of civil engineering projects were completed. The cement turnover came down by 11.3 per cent as volumes showed a 10 per cent reduction. In aggregates and concrete declined by 8.2 per cent as volumes fell by almost 11 per cent in ready-mixed concrete and by more than 10 per cent in aggregates. Prices showed some improvement. In precast concrete, turnover declined by 16.5 per cent. The Italian turnover improved by 10.9 per cent and the cement volumes advanced by almost five per cent, with third quarter volume showing an increase in excess of 25 per cent.

In the USA turnover improved by 3.4 per cent to EUR307m, but the underlying advance was 11 per cent. The cement volume again advanced by more than six per cent, and the turnover improved by an underlying 11.9 per cent, but on conversion this was reduced to 4.2 per cent. The southeast had the benefit of much better weather conditions than during the previous year. California suffered from the effect of forest fires. Selling prices improved in both California and the southeast. The ready-mixed concrete turnover improved by one per cent overall, with a slight decline in California, but a good improvement in the southeast. Third-quarter volumes were almost seven per cent lower, as the decline in California was only partially compensated for by the improvement in the southeast. 

Turnover in Asia increased by 3.1 per cent to EUR440m, but at unchanged exchange rates the growth would have been 22.6 per cent. The Turkish turnover was up by 17.9 per cent in constant currency but declined by 14.3 per cent as reported to EUR134m. The turnover in cement declined by 14.2 per cent. The volume was slightly ahead over the nine months but declined by almost 11 per cent in the third quarter. The underlying turnover in concrete and aggregates improved by 17.6 per cent in constant currency but came down by 14.5 per cent as reported. Volumes fell by almost 20 per cent in aggregates but by just some two per cent in ready-mixed concrete. The Indian turnover improved by 11.8 per cent to EUR254m, helped by a near 29 per cent increase in the tonnage sold to 4.9Mt but a notable decline in selling prices. In the third quarter, volumes increased by almost 19 per cent. In Kazakhstan turnover improved by 20.3 per cent to EUR52m as volumes increased by some 15 per cent. In the third quarter turnover rose by 19.1 per cent on volumes that were just one per cent higher.      

In Africa and Egypt, underlying turnover declined by 8.4 per cent to EUR200m. The Egyptian turnover showed an underlying 39.4 per cent drop and an actual 43.2 per cent drop. The volume sold dropped by more than 50 per cent because of the military activities in Sinai. In the third quarter, turnover was off by eight per cent on volumes that were 21 per cent lower. Turnover in western Africa edged ahead by 1.2 per cent and volumes were stable across the region. Prices improved in Mauritania were stable in Senegal and declined in Mali. The aggregates operations in Senegal reported a 9.1 per cent increase in volumes on the same period last year.

Published under Cement News

Tagged Under: France Vicat business results