France-based cement major Vicat reported a 1.2 per cent rise in turnover in 2012 to €2292.2m, but the EBITDA declined by 10.9 per cent to €437.4m and the trading profit fell by 20.8 per cent to €245.2m. The company booked a pre-tax profit 20 per cent lower at €207.6m and the net attributable fell by 21.1 per cent to €129.1m.

Net debt was 6.2 per cent higher at €1,144m and represents 46.4 per cent of total shareholders, or 53.7 per cent if minorities are excluded. Capital investment last year was 4.0 per cent higher at €287m, while and net spending on acquisitions was reduced by 55.6 per cent to €16m and consisted mainly of ready-mixed concrete companies in France.

In terms of activity split, turnover in cement was ahead by 1.6 per cent to €1377m, while cement deliveries eased by 0.8 per cent to 17.89Mt and the EBITDA declined by 11.5 per cent to €336m. The concrete and aggregates operations produced a turnover 0.1 per cent ahead at €855m while the EBITDA declined by 13.4 per cent to €68m, with volumes declining by 3.2 per cent in aggregates to 21.52Mt and by 0.5 per cent to 7.93m m³ in ready-mixed concrete. Other products and services produced a 2.5 per cent increase in turnover to €401m and the EBITDA improved by 1.8 per cent to €34m.

France down on a higher 2011 base

Europe turnover improved by two per cent to €411m and the EBITDA improved by 2.4 per cent to €105m.The French turnover declined by 6.3 per cent to €879m and the EBITDA came down by 19.1 per cent to €163m. The lower numbers reflect an exceptionally favourable 2011 as well as an underlying reduction in construction activity. Cement deliveries declined by in excess of 13 per cent, but the average price was slightly higher.  In the rest of The Swiss cement turnover improved by five per cent, helped by a better product mix and better pricing.

US turnover recovers

The United States turnover recovered by 18.7 per cent to €196m, helped by a stronger US dollar, and the loss at the EBITDA level was reduced by 41.7 per cent to €5m but the trading loss was just 13.1 per cent lower at €34m. Cement volumes recovered by more than 17 per cent and the turnover grew by 18.7 per cent but the EBITDA remained negative for the full year, although it was positive during the second half. Turnover in ready-mixed concrete improved by 6.0 per cent, with a good volume increase being seen in California. The US volumes and prices are expected to continue to improve in 2013, both in California and in the South-East.

Turkish exports decline

The Turkish turnover rose by 12.3 per cent to €221m and the EBITDA rose from €41m to almost €48m. In cement, the turnover improved by 10.9 per cent. Cement shipments increased somewhat overall, but exports were well down. The EBITDA rose overall though the margin was slightly lower. In aggregates and concrete, the turnover recovered by 14.2 per cent as aggregates volumes were positive throughout the year and increased by more than 13 per cent, while ready-mixed concrete volumes were negative during the first half, but then recovered. Both EBITDA and the EBITDA margin improved strongly.

New capacities in Asia

In India, turnover rose by an underlying 30.5 per cent to €156m and the cement volume sold exceeded 2.5Mt. The EBITDA was little changed at €31m as much higher transport and electricity costs had to be absorbed. The first phase of the 5.5Mta Vicat Sagar works in India was started up towards the end of the year and will gradually work up to its 2.8Mta design capacity. The new 1.1Mta cement works at Jambyl in Kazakhstan increased production to almost 1Mt and the turnover rose from €26.9m to €66m, helped by a favourable trend in prices, and the EBITDA reached €13m compared with a little over €1m in its nine-month first year.

Gas supplies affect Egyptian operations

The African and Middle Eastern turnover declined by 11.3 per cent to €364m and the EBITDA fell by 31.9 per cent to €83m, while the trading profit dropped by 46.7 per cent to €46m. In Egypt, turnover fell by 27 per cent, having already dropped by €33.3 per cent in 2011, as gas supplies were interrupted, though the situation did improve in the second half of the year.  In West Africa, turnover declined by 5.2 per cent as prices generally eased in West Africa and competition became more serious in Sénégal. Volumes were also negatively affected by the civil war in Mali. In spite of all these negative effects, cement volumes did increase by around two per cent. 

Published under Cement News