Cementir boosted by financial items

Cementir's turnover edged ahead by 0.6 per cent to EUR475.7m in first half of 2015, as the improvements in Denmark and Sweden made up for lower results from Norway and Turkey while Italy was broadly stable. EBITDA, however, declined by 6.7 per cent to EUR73.14m. After a 3.4 per cent increase in depreciation and similar charges, the trading profit was down by 17.7 per cent to EUR31m. The net financial item swung from a EUR6.2m loss to a EUR5.3m profit, resulting in a pretax profit 15.3 per cent ahead at EUR36.2m, and the net attributable profit rose by 16.2 per cent to EUR23.9m. The net debt at the end of June stood at EUR312m, 12.1 per cent lower than a year earlier, giving a gearing level of 30 per cent compared with 36.6 per cent a year earlier. Capital expenditure in the period amounted to EUR27.2m, of which cement accounted for 20.8m. 

Grey and white cement shipments declined by 7.6 per cent to 4.53Mt, while the aggregates tonnage rose by 11.2 per cent to 1.84m, as demand grew Denmark and Sweden. Ready-mixed concrete deliveries were 0.8 per cent lower at 1.78Mm³.

The Italian turnover was broadly stable as higher volumes were offset by lower prices. In Denmark cement volumes grew by 4.8 per cent and ready-mixed concrete deliveries rose by 11.7 per cent, helped by infrastructure spending and a mild winter. In Sweden ready-mixed concrete deliveries rose by 16.2 per cent and aggregates volume by 14.7 per cent  Norway was weaker and ready-mixed concrete volumes there fell by 14.8 per cent. 

Turkey saw an 8.5 per cent reduction in turnover, while in local currency the reduction was 11.6 per cent as the lira appreciated. An investment is being made to enable the use of petcoke as the main fuel from next year. Deliveries of cement and ready-mixed concrete declined by 19.3 per cent and 5.3 per cent, respectively. Egyptian turnover rose because of the weaker euro, but in local currency there was a 4.1 per cent reduction. In Malaysia sales advanced by 16.3 per cent in local currency, helped by higher exports, notably to Australia. In China, turnover declined by 8.5 per cent in local currency and sales of white cement came off by 3.6 per cent. A 17.9 per cent rise in the value of the yuan led to an improved profit on conversion.