Cementir 9M16 results affected by foreign currencies

Cementir's results for the first nine months of 2016 were down on 2015 mainly because of the depreciation of the major foreign currencies, which had a negative effect of EUR6.3m on EBITDA, claims the Italian company. Sales gains of 1.8 per cent in the Scandinavian countries and Malaysia failed to offset the weakness of the Italian market and other negative effects in Turkey.

The depreciation of the major foreign currencies against the Euro had a negative effect of EUR32.3m. EBITDA, at EUR 118.5m, was down 5.4 per cent compared to 9M15.

In the Nordic and Baltic and United States area, revenue was EUR403.4m, an increase of 4.6 per cent from EUR385.8m in the same period of 2015.

In Denmark revenue increased by EUR16m (+6.6 per cent) as a result of the increase in sales volumes of cement (+10.4 per cent compared to the first nine months of 2015) driven by the strong performance of civil construction and major projects, with sales prices substantially stable both for cement and ready-mixed concrete.

Exports were also up, both for white cement (+13 per cent) – driven in particular by exports to the United States – and for grey cement, especially to subsidiaries in Norway and Iceland.

In Norway, revenue increased by EUR2.9m (+3.3 per cent), thanks to the significant recovery in the building sector especially in the east of the country, with sales volumes of ready-mixed concrete up 12 per cent compared to the corresponding period of 2015.

Meanwhile, in Sweden revenue from sales recorded a slight increase compared to the same period of 2015, due to the growth in sales volumes of ready-mixed concrete (+18 per cent) as a result of strong performance in the residential and nfrastructural sector, especially in the areas of Malmö, Lund, Thage and Nimab.

UK revenues were down 10 per cent following teh Brexit vote, while in the Eastern Mediterranean area revenue from sales was EUR 205.3m, a decrease of 3.7 per cent on the EUR 213.1m figure recorded for the same period of 2015. In Turkey revenue in local currency increased by 8.7 per cent, whiel in Egypt revenues fell by 1.7 per cent on the same period in 2015.

In the Asia Pacific area, sales revenue was magially down at EUR56.9m from EUR56.6m, recorded for the same period of 2015. Malaysian revenue dropped by 7.9 per cent and Chinese sales revenue by 1.5 per cent.

In Italy and the central Mediterranean area revenue from sales totalled EUR69.9m, a slight increase compared to EUR69.8m in the same period of 2015, incorporating the revenue from the Sacci business division (EUR 8.2m), which entered the scope of consolidation in the third quarter of 2016.

Group operating costs totalled EUR620.4m an increase of 2.8 per cent compared to EUR603.7m for the 9M15.