Italcementi hit by restructuring and impairment charges

Italcementi's first-half turnover declined by 2.1 per cent to EUR2122.6m and running EBITDA was 7.6 per cent lower at EUR300m. Hit by restructuring and impairment charges, the trading profit of EUR113m was turned into a EUR2090.6m trading loss.

Net financing costs increased by 3.6 per cent to EUR68.4m, giving a pretax loss of EUR291.1m, compared with EUR57.3m profit a year earlier. At the net attributable level there was a EUR372.8m loss, compared with a EUR32.6m a year earlier. Net debt stood at EUR1954.5m compared with EUR2237.6m a year earlier and compares with shareholders’ funds of EUR2641.2m, giving a gearing ratio of 74 per cent, up from 57 per cent a year earlier. Capital expenditure during the period was 29.3 per cent lower at EUR137.54m.

Cement and clinker shipments in the period year was 2.9 per cent higher at 22.3Mt, while deliveries of aggregates improved by 3.9 per cent to 17.1Mt and the ready-mixed concrete volumes improved by 3.3 per cent to 5.9Mm³. The international cement and clinker trading volume recovered by 5.7 per cent to 1.7Mt while the turnover from that activity declined by a further 11.7 per cent to EUR80.7m, but EBITDA declined from EUR11.7m to EUR5.1m.