Italcementi’s improvements in Asia and North America offset declines elsewhere

Italcementi's first-half turnover recovered by 5.8 per cent to EUR2167.5m and running EBITDA improved by 5.3 per cent to EUR324.5m. Helped by a reduction in the impairment charge, the trading profit improved by 9.6 per cent to EUR113m. Net financing costs eased by 0.2 per cent to EUR66m, giving a pretax profit of EUR57.3m, compared with EUR4.3m a year earlier. After tax, there was a EUR3.8m profit, compared with a EUR79.6m loss at the same stage a year ago. The net attributable loss amounted to EUR32.6m compared with EUR113.3m a year earlier. Net debt stood at EUR2237.6m, 20.8 per cent higher than a year earlier and compares with shareholders’ funds of EUR3926.9m, giving a gearing ratio of 57 per cent. Capital expenditure during the period was 29.8 per cent lower at EUR194.4m.

Cement and clinker shipments in the period year was 0.1 per cent lower at 21.7Mt, while deliveries of aggregates improved by 6.6 per cent to 16.4Mt and the ready-mixed concrete volumes improved by 0.3 per cent to 5.8Mm³. The international cement and clinker trading volume declined by 11.9 per cent to 1.7Mt and the turnover from that activity declined by 10.8 per cent to EUR90.8m, but EBITDA advanced from EUR5.5m to EUR11.7m. 

The western European turnover declined by 5.5 per cent to EUR1027m and EBITDA eased by 4.7 per cent to EUR133.2m. Cement and clinker volumes declined by 2.3 per cent to 7.6Mt, but aggregates shipments improved by 2.1 per cent to 14.5Mt while ready-mixed concrete deliveries were down by 3.6 per cent to 3.5Mm³. Italian cement and clinker volume declined by 1.8 per cent, and a cement price increase was implemented in June, which has been successful to date. Turnover declined by 4.6 per cent in the first half but EBITDA rose from EUR15m to EUR34m as the cost base was lowered. France and Belgium saw turnover decline by 6.6 per cent to EUR656.9m and EBITDA fell by 27.3 per cent to EUR80m. The decline in cement volumes was reduced from seven per cent in the first quarter to three per cent in the second quarter while pricing remains weak. In Spain domestic deliveries did recover by 3.1 per cent, but prices remain weak and the overall volume declined by 4.3 per cent. Turnover declined by 4.1 per cent to EUR52m and EBITDA fell by 87 per cent to EUR1m. Bulgarian domestic sales rose by 3.2 per cent while, thanks to the lower cost base, the overall volume rose by 25.4 per cent. Turnover improved by 15.2 per cent to EUR32m and EBITDA jumped from EUR7m to EUR18m. Greek volumes declined by 10.3 per cent while turnover came off by 10.1 per cent to EUR13m and EBITDA dropped from EUR0.9m to EUR0.2m.

The Middle East generated a turnover seven per cent ahead at EUR519.1m, but EBITDA declined by 12.2 per cent to EUR116.1m as cement and clinker shipments fell by 1.8 per cent to 6.3Mt. Aggregates shipments increased by 28.8 per cent to 0.9Mt and ready-mixed concrete deliveries were 12.4 per cent higher at 1.5Mm³. Egyptian cement shipments dropped by 5.4m, with domestic deliveries decreasing by 2.6 per cent as turnover was 1.9 per cent higher at EUR298m. EBITDA declined by 37 per cent to EUR40m. Morocco remains the largest profit earner with in the region with EBITDA 10.5 per cent higher at EUR74m on a turnover 11.3 per cent higher at EUR179m, as the cement volume improved by 1.4 per cent. In Kuwait, turnover rose by 33.5 per cent to EUR38m. EBITDA improved by nie per cent to EUR2m on a cement volume that was 40.6 per cent higher, following a 23.4 per cent drop a year ago.

Asian cement and clinker deliveries were 1.8 per cent ahead at 5.6Mt. Turnover staged a 29.4 per cent advance to EUR335.8m and EBITDA jumped by 65.3 per cent to EUR62.7m. Sales in Thailand rose by 22.3 per cent to EUR163m and EBITDA rose by 21 per cent to EUR39m though prices weakened in response to additional capacity. Domestic deliveries rose by 1.7 per cent, but exports were notably higher, giving an overall volume increase of 9.9 per cent. The Indian turnover rose by 35.7 per cent to EUR151m and EBITDA more than doubled to EUR9m. In Kazakhstan turnover staged a 45.7 per cent recovery to EUR22m, but there was a EUR3m loss at EBITDA level while volumes rose by 31.6 per cent in cement.

The North American turnover improved by 31.1 per cent to EUR242.5m, helped by currency movements, and EBITDA went from a EUR6.1m loss to a profit of EUR1.9m. Cement shipments improved by 3.1 per cent to 1.9Mt. Shipments of aggregates rose by 31.4 per cent to 0.6Mt, but ready-mixed concrete deliveries were 0.3 per cent lower at 0.3Mm³.