Cementir suffers 1Q18 weather effects

Cementir's first-quarter turnover declined by 13.4 per cent to EUR242.3m, while adjusting for the Italian operations disposed of, the reduction was a more modest 1.6 per cent. EBITDA improved by 4.7 per cent to EUR24.1m, while at the trading level there was a swing from a EUR0.95m loss to a EUR6.31m profit. Helped by the interest line turning positive, the pretax result went from a EUR6.18m loss to a profit of EUR7.20m. Net debt at the end of March was EUR387.1m compared with the EUR646.4m a year earlier to give a gearing level of 38.7 per cent compared with 62.7 per cent a year earlier. 

Shipments of grey and white cement declined by 19.2 per cent to 2.08Mt while ready-mixed concrete deliveries were  4.8 per cent higher at 1.14Mm³ while despatches of aggregates advanced by 8.6 per cent to 2.18Mt. 

The Nordic and Benelux were affected by a strong winter and the turnover eased by 5.2 per cent to EUR176.2m. The Belgian-based CCB contributed a turnover 12.7 per cent higher at EUR60.2m and EBITDA four per cent lower at EUR4.8m. In Denmark turnover eased by 5.1 per cent and EBITDA came off by 2.3 per cent to EUR11.9m. Volumes came off by 1.1 per cent in cement and by seven per cent in ready-mixed concrete, with domestic deliveries of grey cement down by some 10 per cent. However, sales of white cement improved by 14 per cent. In Norway and Sweden the turnover declined by 18.9 per cent to EUR39.6m and EBITDA went from a EUR2.6m profit to a very marginal loss. Badly hit by the weather, Norwegian ready-mixed concrete deliveries fell by 23 per cent while in Sweden deliveries were down by 12 per cent in ready-mixed concrete and broadly stable in aggregates.

In Turkey turnover showed a strong recovery and was ahead by 33.1 per cent to EUR43.2m, but EBITDA came down by 32.5 per cent to EUR3.2m, with cement and ready-mixed concrete deliveries both being higher. However, higher fuel and electricity costs weighted heavily on the results. Egyptian turnover dropped by 61.6 per cent to EUR4m as the political situation in Sinai made trading extremely difficult and the operation just broke even at the EBITDA level. 

In Malaysia volumes of white cement and clinker improved by 8.5 per cent on a turnover one per cent ahead at EUR9.2m, with EBITDA falling by 27.6m to EUR1.4m. In China the turnover declined by 4.1 per cent to EUR8.8m while EBITDA jumped by 20.3 per cent to EUR2m.