Cementir expects a better second half from Turkey

Cementir's first half turnover improved by 2.6% to €462.5m, with improvements in the Nordic area, the Far East and Egypt, being partially offset by weaker numbers in Italy and in Turkey. 

EBITDA improved by 17.5% to €55.9m and a depreciation and impairment charge just 1.8% higher at €42.8m, the trading profit jumped 136.1% to €13.2m.  In spite of a 14.9% increase in the net interest charge to €9.2m and helped by an 83.8% increase in the income from associates to €0.9m, a pre-tax profit of €4.9m was achieved compared with a loss of €1.9m a year earlier.  The net debt at the end of June stood at €406.0m, 13.6% higher than a year earlier, giving a gearing level of 39.3% compared with 36% a year earlier. 

The grey and white cement volume was off by 10.4% to 4.68Mt, but profitability was helped by a better mix. This was in art thanks to higher exports of white cement from Egypt. Domestic deliveries in Egypt, however, were lower, as were cement volumes in Italy and in Turkey, in part reflecting unfavourable weather. On the other hand, local deliveries and exports from Scandinavia increased, as did sales of ready-mixed concrete into the Danish, Norwegian and Swedish markets. Group deliveries of ready-mixed concrete were down by 7.2% 1.76Mm³, while the aggregates tonnage was 4.1% lower at 1.79Mt. The workforce was 1.8% lower that a year earlier at 3265. 

A volume recovery is expected in Turkey for the second half of the year in addition of the commencement of profits from the waste activities from the fourth quarter. No recovery is in sight for Italy, but the Nordic area continues to trade well. The outlook for Egypt remains highly uncertain.