Cementir shows strong 1Q recovery

Cementir shows strong 1Q recovery
15 May 2019

Cementir's first-quarter turnover recovered by 9.1 per cent to EUR264.4m (US$296.4m) and EBITDA rose by 39.8 per cent to EUR33.7m, while at the trading level the advance was reduced to 23.6 per cent to EUR7.8m. At the pretax level, there was a swing from a EUR7.2m profit to a loss of a EUR0.3m. Net debt at the end of March was EUR416.4m compared with EUR387.1m a year earlier, to give a gearing level of 16.9 per cent. The number of employees increased by 2.6 per cent to 3063.

Shipments of grey and white cement declined by 12.5 per cent to 1.82Mt, while ready-mixed concrete deliveries were 20.9 per cent lower at 0.90Mm³, but dispatches of aggregates advanced by 2.9 per cent to 2.24Mt. 

The Nordic cement and other European white cement activities saw turnover recover by 12.9 per cent to EUR126.6m and EBITDA rose by 55.1 per cent to EUR19.8m. In Denmark turnover increased by 12.5 per cent to EUR83.3m and EBITDA by 12.5 per cent to EUR16.2m. Domestic cement volumes improved, but while exports of white cement were good, there was a 12 per cent decline in grey cement exports. Sales of ready-mixed concrete were in line with those of the same period last year. In Norway and Sweden, the turnover improved by 13.9 per cent to EUR45.1m and EBITDA went from a EUR0.2m loss to a profit of 3.4m as the weather improved. Norwegian ready-mixed concrete rose on the back of a milder winter and infrastructure projects, with prices rising above inflation. In Sweden deliveries were ahead in ready-mixed concrete and in aggregates.

The markets in Belgium and France were positive and the turnover improved by seven per cent to EUR59.7m and EBITDA more than doubled from EUR4.5m to EUR9.4m. Prices were higher in cement, mainly in Belgium. In ready-mixed concrete volumes were lower because of strong competition, while aggregates sales were modestly lower. Italy contributed a turnover 19.7 per cent lower at EUR14.2m and EBITDA of EUR1.1m. 

In North America the consolidation of the USA subsidiary LWCC only became effective from the second quarter of last year, producing a 1Q turnover of EUR36.1m and EBITDA of EUR3.6m.

In Turkey turnover dropped by 54.7 per cent to EUR21.5m because of the substantial devaluation of the Turkish currency. Domestic sales volume dropped by 55 per cent to around 0.45Mt, while exports of cement and clinker was increased. Ready-mixed concrete deliveries fell by 50 per cent in volume and by 43 per cent by value. However, the waste management business did well.  At the EBITDA level, there was a EUR4.7m loss against a EUR4.1m profit. The Egyptian turnover more than doubled from EUR4.0m to EUR8.5m. EBITDA went from nearly zero to EUR1.4m. Volumes were higher in both the domestic and export markets.

In Malaysia volumes of white cement improved, but clinker sales dropped, giving a total turnover 9.9 per cent lower at EUR8.4m, with EBITDA falling by EUR0.3m to EUR1.1m. In China the turnover advanced by eight per cent to EUR9.5m while EBITDA was ahead by 3.3 per cent to EUR2.1m.

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Tagged Under: Cementir Italy business results