Cementir's growth impeded by the strong euro

Cementir's turnover emerged just 0.1 per cent ahead at EUR472.8m in first half of the year, as the improvement in Denmark and Norway was offset by currency weakness and the continuing decline in Italy. EBITDA, however, rose by 26.4 per cent to EUR78.4m and was helped by a 7.8 per cent reduction in depreciation and similar charges.

The trading profit was more than doubled and jumped ahead by 112 per cent to EUR37.6m. The net financial charge was jumped from EUR2.8m to EUR7.3m, resulting in a pre-tax profit 104.8 per cent ahead at EUR31.4m,and the net attributable profit jumped from EUR7.4m to EUR20.5m.

Net debt at the end of June stood at EUR354.9m, 11 per cent lower than a year earlier, giving a gearing level of 36.6 per cent compared with 39.9 per cent a year earlier. Capital expenditure in the period amounted to EUR28.7m.

Grey and white cement shipments advanced by 6.6 per cent to 4.91Mt, while the aggregates tonnage rose by 17.2 per cent to 1.66Mt, as demand grew Denmark and it Turkey. Ready-mixed concrete deliveries were just 0.6 per cent ahead at 1.8Mm³.

The Italian construction market continued on its downward trend and turnover emerged EUR11.5m lower as both volumes and prices continued to weaken. Denmark showed a good recovery and Norway was helped by a four per cent increase in ready-mixed concrete volumes, but volumes in Sweden declined. The Nordic turnover improved by 3.5 per cent, while in local currency sales grew by 10.7 per cent in cement, by 17.3 per cent in aggregates and by 5.3 per cent in ready-mixed concrete.

Turkey saw a 29 per cent increase in turnover in local currency, but the value of the Turkish currency dropped by a quarter, limiting the improvement in turnover to just four per cent. Cement deliveries in Turkey rose by 12.3 per cent in the period and prices advanced for both cement and ready-mixed concrete. Egyptian turnover rose by around 10 per cent in local currency, but on conversion this comes down to +4 per cent, while volumes were little changed. In China, turnover improved by 5.8 per cent in local currency and sales of white cement improved by 4.6 per cent. In Malaysia turnover was stable on somewhat lower volumes. Currency weakness against the euro led lower numbers for both China and Malaysia.