Buzzi Unicem boosted by strong Dyckerhoff advance
On a turnover that advanced by 5.2% to €2787.4m, Buzzi Unicem’s underlying EBITDA improved by 6.0% to €422.3m. With the non-recurrence of the exceptional charges seen in 2010, the trading profit (EBIT) jumped from €0.3m to 185.9m. After a net interest charge 3.7% lower at €99.8m a pre-tax profit of €84.3m emerged, an improvement on the previous year’s loss but still well below the €235.2m profit achieved in 2009. Net attributable profit was €26.4m. Net debt at the end of the year was 9.8% lower at €1141.1m, while shareholders’ funds improved by 2.2% to €2844.8m to give a gearing of 40.2%. Volumes improved by 6.2% to 28.2Mt in cement and by 4.8% to 15.1Mm³ in ready-mixed concrete.
Italian domestic cement deliveries fell for the fifth year in a row, with the total cement and clinker volume decreasing by 10.5%. In spite of the drop in volumes, the average price did manage to stage an 8.4% recovery. The sale of emission rights produced an income 58.5% lower at €13.5m. In ready-mixed concrete, volumes fell by 11.5%, though the average selling price did improve by 0.7%. The turnover declined by 7.5% to €568.1m and the EBITDA dropped by 68.3% to €10.3m. Capital expenditure amounted to €22.4m.
The German turnover, on the other hand, rose by 16% to €636.65m. After a more than halving of receipts from the sale of emission rights to €2.6m and an average decline in cement prices of 1.5%, the EBITDA still improved by 18.3% to €90.3m. Cement deliveries rose by 12.8% to 5.41Mt and the enlarged ready-mixed concrete business boosted deliveries by 27.5% to 4.04Mt³. Capital expenditure was €29m. Volumes ought to be at least maintained at these higher levels in 2012. In Luxembourg the turnover rose by 22.2% to €112.8m and the EBITDA more than doubled to €33.4m, helped by a 22.4% increase in cement shipments to 1.32Mt, much higher sales of emission certificates and a property disposal. The Dutch turnover declined by 3.0% to €109.7m and the EBITDA was more than halved to €1.6m, with the aggregates tonnage declining by 12.0% to 3.29Mt, but ready-mixed concrete deliveries increased by 3.6% to 0.95Mt³.
Polish cement deliveries rose by 7.8% to 1.61Mt and the ready-mixed concrete volume advanced by 17.1% to 1.02Mm³. The turnover rose by 11.4% to €144m in spite of a further fall in local currency and the EBITDA improved by 10.5% to €36.9m and there was a more than trebled profit from the sale of emission certificates to €1.5m. In the Czech Republic and in Slovakia, turnover recovered 7.8% to €172.0m and the EBITDA by 7.3% to €35.2m. The cement volume rose by 26.2% to 0.96Mt, the aggregates tonnage by 2.9% to 1.58Mt and ready-mixed concrete deliveries by 12.2% to 1.72Mm³. Volumes in these two countries are expected to be stable in 2012.
The Ukrainian turnover rose by 37.9% to €112.5m, in spite of a weaker currency while the EBITDA returned to positive territory at €6.9m. This was achieved thanks to improved volumes and a switch to coal firing at the Yug and Volyn works. Cement shipments rose by 24.0% to 1.9Mt and in ready-mixed concrete there was a 23% advance to 0.17Mm³. Capital expenditure amounted to €14.4m. In Russia, cement production rose by a further 33.7% to 2.43Mt and selling prices started improving in the second half of the year. The turnover advanced by 41.4% to €175.5m and the EBITDA jumped by 65.5% to €65.7m, helped by the recently installed dry process kiln. Capital expenditure amounted to €36.8m.
United States turnover declined by 7.2% to €557.9m, as the US dollar depreciated by 5.0%. Higher fuel and distribution costs as well as low capacity utilisation led to a 24.9% reduction in EBITDA to €66.6m. Capital expenditure was €24.1m. Cement shipments declined by 1.6% to 6.17Mt while average selling prices fell by 5.2% in local currency, again reflecting the weak demand. Ready-mixed concrete volumes came off by 1.3%, but pricing did better, improving by 1.9%. This would, at least in part, be explained by Buzzi Unicem’s strong presence in Texas, which had performed better than most states. No more than a modest improvement is envisaged for 2012, but the forecasts for 2013 are more optimistic.
The 50%-owned Mexican associate Corporaciòn Moctezuma increased cement shipments by 13.6% to just over 5.5Mt, helped by the coming on stream of the new works at Apazapan in the state of Veracruz just before the beginning of the year. Cement prices improved by 5.9%. The turnover increased by 15.2% in local currency, which translates into an 11.5% advance in euros to €237.9m and the EBITDA improved by 6.8% to €82.4m. Margins declined, chiefly because of higher energy costs, but remained at a comparatively healthy level of 34.6%. Capital expenditure in the year amounted to €20.2m. In 2012, public construction levels should remain good ahead of the presidential election in July and production costs have fallen, thanks to lower prices being paid for petcoke.
