Italcementi reduces nine-month loss

Italcementi's turnover declined by 3.1 per cent to €3,217.5m in the first nine months the year and the running EBITDA eased by 0.6 per cent to €469.3m. Very substantially lower re-organisation costs and a 12.1 per cent reduction in depreciation and impairment charges resulted in the trading profit staging a 48.1 per cent recovery to €160.9m.

 The net interest charge rose by 15.7 per cent to €100.0m and a larger financial impairment charge, the pre-tax profit jumped from €10m to €40.3m.  After a 16.1 per cent rise in the tax charge to €104.5m, the net attributable loss did decline by 16.7 per cent to €112.6m.  Net debt at the end of September stood at €2,173.5m compared with the €2,031.1m shown a year ago, giving a gearing ratio of 56.9 per cent compared with 52.8 per cent. 

Cement and clinker deliveries were unchanged on balance at 32.6Mt, with a 15.7 per cent increase in international trading volume being offset by a 0.9 per cent reduction in Europe.  The volume of internationally traded cement amounted to 2.7Mt.  Aggregates shipments down by 6.3 per cent lower at 23.2Mt and ready-mixed concrete deliveries declined by 7.2 per cent to 8.6Mm³.

Cement and clinker sales in western Europe was off by 0.9 per cent to 10.9Mt, while aggregates shipments declined by 3.9 per cent to 21.2Mt and ready-mixed concrete deliveries fell by 10.8 per cent to 5.4Mm³.  EBITDA showed a good recovery in Italy, but there was a decline in France.  The Arab countries and Black Sea regional volume improved by three per cent in cement to 10.1Mt, but aggregates volumes fell by 31 per cent to 1.1Mt and ready-mixed concrete were off by 1.8 per cent to 1.9Mm³.  

Egypt saw turnover increase, but there was a reduction in Morocco.  Asia, which covers Thailand, India and Kazakhstan, cement deliveries improved by 1.9 per cent to 8.3Mt, aggregates shipments remain negligible while ready-mixed concrete deliveries improved by 1.8 per cent to 0.8Mm³.  Both Thai Indian turnover increased.

The underlying North American turnover increased as cement deliveries were 1.2 per cent higher at 3.3Mt and ready-mixed concrete deliveries improved by 1.5 per cent to 0.6Mm³, but aggregates shipments declined by 16.9 per cent to 0.9Mt.