Vicat first-half 2012 turnover eases
France-based Vicat's first half performance improved strongly in Asia but results have mainly deteriorated elsewhere. Turnover for the six months to June 2012 eased by 1.5 per cent to €1128.8m, which represents a 2.4 per cent reduction on a comparative basis. EBITDA declined by 20.8 per cent to €200.6m as the margin narrowed from 22.1 per cent to 17.8 per cent. The trading profit fell by 36.6 per cent to €104.5m. After a net interest charge 1.4 per cent higher at €19m, the pre-tax profit came off by 39.5 per cent to €86.1m and the net profit by 43.8 per cent to €51.1m. Capital spending in period was 9.7 per cent higher at €151.8m, with capital expenditure being ahead by 20.1 per cent to €146.2m as spending on acquisitions was reduced to just €3.1m. The net debt was 14.2 per cent higher at €1320.1m to give a gearing level of 62.2 per cent.
Cement deliveries were two per cent lower at 8.87Mt and the share of turnover from cement being virtually unchanged at 54.8 per cent compared with 54.9 per cent as the cement turnover eased by 1.9 per cent to €685m.
The French turnover came off by 9.8 per cent to €440.9m while the EBITDA fell by 28.9 per cent to €75.0m. The cement turnover declined by 12.2 per cent as poor weather caused volumes to retreat by almost 13 per cent though the average price obtained was slightly ahead. In the rest of Europe, turnover advanced by 1.2 per cent to €191.6m and the EBITDA edged ahead by 0.2 per cent to €47m. Swiss cement volumes declined by about seven per cent, though the average price improved. The Italian turnover improved by 10.8 per cent in spite of lower volumes, as prices recovered.
The US turnover recovered by 24.8 per cent to €95.7m, or by 15.4 per cent in dollar terms, but the EBITDA loss still worsened by 30.9 per cent to €7.6m while the trading loss was 12.6 per cent higher at €23.2m. The turnover in cement recovered by 19 per cent on the back of a 21 per cent volume recovery, with similar rates of improvement in both Alabama and California. Prices were lower than a year ago, but in line with the second half of last year. Losses at the EBITDA level were halved compared with the first half of last year.
The Turkish turnover improved by 9.3 per cent to €97m. Cement volumes declined down by some four per cent, having fallen by 29 per cent during the first half because of adverse weather conditions. Average selling prices were on the increase throughout the period.
Bharathi Cement Company in India increased turnover by 37.7 per cent to €79m from the sale of in excess of 1.2Mt of cement. The EBITDA rose by almost 24 per cent, but the margin was slightly lower on higher transport and electricity costs. The 53 per cent-owned Vicat Sagar Cement is just starting production with an initial annual capacity of 2.75Mt. Jambyl Cement in Kazakhstan sold almost 0.45Mt of cement, generating a turnover of €28.1m, up from the €6.7m from three months’ production in the comparative period.
The African and Middle Eastern was down by 14.2 per cent to €196.7m and the EBITDA fell by 36.6 per cent to €49.5m. In Egypt, the turnover fell by 31.9 per cent on the back of a 28 per cent volume drop and a slight reduction in the average price, as interruptions in the gas supply obstructed production, leading to a significant fall in profitability. In West Africa, turnover declined by 5.9 per cent as volumes were off by two per cent, largely because of the political situation in Mali.
