Italcementi’s North American and Bulgarian cement volumes ahead, but softer elsewhere

Italcementi's turnover improved by 3.2 per cent to EUR3217m in the first nine months the year and the running EBITDA was 1.7 per cent ahead to EUR482.9m, while the trading profit eased by 0.4 per cent to EUR165.6m.

The net interest charge declined by 14.9 per cent to EUR85.0m and, after other items, the pre-tax profit rose by 31.8 per cent to EUR60.9m in the absence of impairment charges. After a 37.2 per cent reduction in the tax charge to EUR69m, the net attributable loss was more than halved to EUR55.3m. The net debt at the end of September stood at EUR2,297.8m compared with the EUR2,173.5m shown a year ago, giving a gearing ratio of 60.4 per cent compared with 56.9 per cent. Capital expenditure was EUR110m lower in the year to date and should amount to around EUR330m for the full year.

Cement and clinker deliveries were 1.4 per cent lower at 32.1Mt, with only North America showing an increase and there was a 3.2 per cent volume reduction in Europe. The volume of internationally traded cement amounted to 2.3Mt, a 16.7 per cent decline. Aggregates shipments showed a 5.3 per cent recovery to 24.5Mt while ready-mixed concrete deliveries declined by 1.5 per cent to 8.5m m³.

Europe
Cement and clinker sales in Europe were off by 3.2 per cent to 11.2Mt, while aggregates shipments advanced by 0.4 per cent to 21.3Mt and ready-mixed concrete deliveries fell by 6.7 per cent to 5.0m m³. Italcementi's domestic turnover declined by 5.7 per cent to EUR426.1m while the EBITDA was just over doubled to a EUR34.6m profit. Italian cement volumes declined by 5.0 per cent in a deteriorating market that is now beginning to improve. The volume reductions were 2.8 per cent in aggregates and 6.3 per cent in ready-mixed concrete.


In France and Belgium, turnover declined by 8.1 per cent to EUR960.5m and the EBITDA fell by a quarter to EUR127.3m, while cement shipments declined by 6.7 per cent in France and by 2.6 per cent in Belgium.

The Spanish turnover came off by 7.0 per cent to EUR75.3m and the EBITDA fell by 89.5 per cent to EUR0.9m on cement and clinker that were 1.1 per cent higher, though the export volumes declined by 6.9 per cent.

In Bulgaria, domestic deliveries improved by 5.2 per cent and export volumes rose by 34.5 per cent, helped by the new Devnya production line, with turnover increasing by 20.1 per cent to EUR51m and the EBITDA rising 2½ times to EUR25m. Greek cement shipments fell by14.1 per cent as domestic deliveries dropped by 70.9 per cent, with turnover falling by 16.0 per cent to EUR19m, giving a EUR1m loss.

Middle East & North Africa
The Arab countries saw volumes decline by 3.8 per cent in cement to 9.0Mt, but aggregates volumes staged a 26.2 per cent recovery to 1.4Mt and ready-mixed concrete shipments were 12.4 per cent higher at 2.1m m³. In Egypt, turnover came off by 4.1 per cent to EUR418.7m, and the EBITDA fell by 47.0 per cent to EUR40.7m and prices are under pressure. Domestic cement deliveries were 4.5 per cent lower and including exports the reduction was 5.5 per cent. Volume and price expectations for the full year have been reduced.

The Moroccan turnover improved by 8.3 per cent to EUR256.2m and the EBITDA staged a 9.6 per cent recovery to EUR113.3m. Cement deliveries declined by 4.2 per cent, but aggregates shipments rose by 25.0 per cent and ready-mixed concrete deliveries advanced by 30.7 per cent.

Kuwait was a strong market, with cement deliveries rising 29.3 per cent, but ready-mixed concrete deliveries were 2 per cent lower, with turnover rising by 27.5 per cent to EUR52m and the EBITDA by 37 per cent to EUR2m.

Asia
In Asia, which covers Thailand, India and Kazakhstan, cement deliveries eased by 0.1 per cent to 8.3Mt, while aggregates shipments were sharply higher at 0.7Mt and ready-mixed concrete deliveries improved by 0.7 per cent to 0.8m m³.

The Thai turnover improved by 15.6 per cent to EUR232.4m and the EBITDA emerged 15.9 per cent higher at EUR56.8m, as domestic cement and clinker volumes improved by just 0.6 per cent but export shipments advanced by 5.7 per cent, while ready-mixed concrete deliveries came off by 8.4 per cent, mainly in the first half.

In India, turnover improved by 28.1 per cent to EUR217.8m and the EBITDA more than doubled to EUR38.9m. The cement and clinker volumes were 13.1 per cent lower in the domestic market but higher exports limited the overall decline to 9.8 per cent.

In Kazakhstan, turnover improved by 24.2 per cent to EUR35.7m, but there was a EUR2.9m loss at the EBITDA level. Domestic cement deliveries were ahead by 22.5 per cent, with the overall increase being 16.9 per cent.

North America
The North American turnover rose by 30 per cent to EUR425m and the EBITDA jumped by 85.2 per cent to EUR36.5m, helped by a stronger dollar. Cement deliveries were 1.8 per cent ahead at 3.4Mt, in spite of the continued weakness in Puerto Rico. Ready-mixed concrete deliveries eased by 0.3 per cent to 0.6Mm³, but aggregates shipments did improve by 18.5 per cent to 1.1Mt.