Italcementi's first-half turnover declined by six per cent to EUR2048.4m, but the running EBITDA did improve by 2.2 per cent to EUR304.8m.

Helped by a 6.2 per cent reduction in the amortisation and depreciation charge, the trading profit improved by 27.7 per cent to EUR99.8m. A 66.5 per cent jump in financing costs, largely related to interest rate derivatives and derivatives on CO2 hedging, led to a net financial charge of EUR75.1m. After contribution from associates and impairment charges the pre-tax profit dropped from EUR21.8m a year ago to just EUR1m. After a tax charge that was 24.2 per cent higher at EUR80.6m and a minorities charge that was 19.7 per cent lower at EUR33.7m, there was a net attributable loss of EUR113.3m compared with an EUR85.1m loss a year earlier.

Net debt at the end of June was 7.4 per cent lower than a year earlier at EUR1,851.7m, giving a gearing of 48.0 per cent compared with 72.4 per cent a year before. Capital expenditure during the period was 96.6 per cent higher at EUR277.0m, principally reflecting the two major items in Italy and in Bulgaria.

Shipments decline
Cement and clinker shipments in the period year declined by 0.5 per cent to 21.7Mt, while deliveries of aggregates were 6.3 per cent lower at 15.4Mt while the ready-mixed concrete volumes down off by 8.1 per cent to 5.7Mm³. The international cement and clinker trading volume improved by 12.2 per cent and the turnover from that activity rose by 9.6 per cent to EUR101.8m and the EBITDA advanced by 37.5 per cent to EUR5.5m.

Western Europe cement shipments edge ahead
The Western European turnover fell by 5.8 per cent to EUR1,059.8m but EBITDA did improve by 9.5 per cent to EUR128.5m. Cement and clinker volumes improved by 1.1 per cent to 7.3Mt, but aggregates shipments declined by 14.2 per cent to 14.2Mt and ready-mixed concrete deliveries were down by 11.7 per cent to 3.6m m³. Italian cement and clinker volume were down by 1.5 per cent, and the cement price was lower because of competitive pressure. Aggregates shipments improved by 1.4 per cent, but ready-mixed concrete deliveries fell by 21.5 per cent. Turnover declined by 10.8 per cent to EUR298.5m but the EBITDA turned positive to the tune of EUR14.6m as production and energy costs were reduced.

France & Belgium saw turnover decline by 4.3 per cent to EUR702.9m and the EBITDA fell by 16.4 per cent to EUR106.4m. Including modest exports, cement volumes in France were off by 1.2 per cent, but in Belgium there was a 9.8 per cent increase, albeit at lower prices. The aggregates volume declined by 1.6 per cent, ready-mixed concrete volumes declined by 5.7 per cent in France but improved by 2.5 per cent in Belgium. In Spain, domestic deliveries fell by 3.6 per cent, but a 19.3 per cent rise in exports led to the turnover improving by 3.7 per cent to EUR53.7m and the EBITDA more than quadrupled to EUR6.5m. The

Greece finally began to recover and cement and clinker volumes rose by 35.0 per cent, aggregates deliveries rose by 16.1 per cent while ready-mixed concrete volumes jumped by 53.7 per cent. As a result, turnover staged a 28.7 per cent recovery to EUR14.8m and an EBITDA profit of EUR0.9m was achieved, compared with a loss of EUR2.3m.

Egyptian exports boost
The Middle East and Bulgaria generated a turnover 1.6 per cent ahead at EUR512.9m, but the EBITDA emerged four per cent lower at EUR139.6m. Egyptian turnover was eight per cent higher at EUR292.5m but the EBITDA declined by 4.9 per cent to EUR63.6m while domestic deliveries were improved by 1.9 per cent and overall volumes rose by 4.5 per cent largely thanks to an 88 per cent increase in exports.

Morocco remains the largest profit earner with in the region in spite of an EBITDA 6.8 per cent lower at EUR66.8m on a turnover 6.2 per cent down at EUR160.7m, as the cement volume declined by four per cent. Bulgarian domestic deliveries recovered by 13.4 per cent, but overall volumes were off by 14.6 per cent, essentially because of lower exports to Russia. The turnover was 8.7 per cent lower at EUR28m, but the EBITDA rose by 84 per cent to EUR7m.

In Kuwait, turnover was 6.6 per cent lower at EUR28m and the EBITDA declined by 38 per cent to EUR2m on a cement volume that were 23.4 per cent lower though ready-mixed concrete deliveries did improve by 6.6 per cent.

Asia ahead
Asian cement and clinker deliveries were 2.6 per cent ahead at 5.5Mt, but the turnover shrunk by 8.7 per cent to EUR259.6m and the EBITDA declined by 3.2 per cent to EUR37.9m. The turnover in Thailand eased by 0.4 per cent to EUR133.2m but the EBITDA rose strongly by 63.1 per cent to EUR32.3m as prices improved further.

Domestic deliveries rose by 6.5 per cent, but exports were lower, giving an overall volume increase of 4.2 per cent, while ready-mixed concrete deliveries rose by 14.4 per cent. The Indian turnover declined by 11.2 per cent to EUR111.0m and the EBITDA fell by 65.6 per cent to EUR6.7m, while cement and clinker sales were 4.9 per cent higher, though the domestic increase was a bit lower at +2.0 per cent.

In Kazakhstan, following the currency devaluation, turnover fell by 40.1 per cent to EUR15m and there was a EUR1m loss at the EBITDA level and volumes were sharply lower, down by 27.3 per cent in cement and by 35.0 per cent in ready-mixed concrete.

North America weather impact
In North America, turnover declined by 8.3 per cent to EUR185.1m and at the EBITDA level there was a fall from a EUR73m profit to a EUR6.1m loss, influenced by poor weather conditions and continued market weakness in Canada and Puerto Rico.

Cement shipments declined by 4.8 per cent to 1.9Mt, but the average price did show some improvement. Shipments of aggregates fell by 28.7 per cent to 0.5Mt following the completion of a major power station contract in Canada and ready-mixed concrete deliveries were 2.6 per cent lower at 0.3Mm³. The international cement and clinker trading activities experienced a 7.9 per cent volume reduction to 1.7Mt.