In the first quarter of 2005, the French cement producer Ciments Francais saw its turnover remain stable year-on-year, while its operating profit dropped 10 per cent, to Euro 73m, with a 130 basis-point drop in its operating margin. The quarterly results, which were released on Wednesday after the markets had closed, stem from a decrease in the company’s sales volume in Europe. Ciment Francais’ net profit, meanwhile, plunged 15 per cent, to Euro 45m, owing to a financial charge of Euro 7m under International Financial Reporting Standards.
For 2005, Ciments Francais and its parent company, the Italian cement, concrete and aggregates group Italcementi, have forecast stable operating margins in view of the hike in energy prices and a slowdown in investments by the construction industry within the eurozone.
