Buzzi Unicem's 9M18 cement volumes rise by 3.1%
Buzzi Unicem reports that its 9M18 cement volumes recorded a rise of 3.1 per cent to 20.9Mt, up from 20.3Mt in 9M17. Consolidated net sales for the 9M18 amounted to EUR2137.4m , up 0.2 per cent compared to EUR2133.4m in the same period of 2017.
Cement and clinker sales of the group in the period January-September 2018 stood at 20.9Mt, an advance of 3.1 per cent compared to the previous year (-0.8 per cent on a like-for-like basis).
Meanwhile, Buzzi Unicem's ready-mix sales fell by 1.8 per cent to 9.1Mm3, a fall from 9.2Mm3 in 9M17.
Europe
Cement sales volumes recorded by the group remained higher than the level reached in the previous year, thanks to changes in the scope of consolidation in Italy and Germany, and to progress achieved in the Czech Republic, Poland and Russia.
Italy
In Italy the expansion of investments in the 2Q18 contributed to sustain growth, while during the summer months the trend slowed down, reflecting a stagnation in industrial production. Cement and clinker sales maintained a significant improvement compared to the first 9M17, thanks to the additional contribution of shipments referring to the former Cementizillo plants and to the growth in volumes exported overseas.
The Italian ready-mix concrete sector, which was subject to a restructuring and rationalisation of the number of batching plants directly managed by the group, achieved a lower level of production compared to the same period of the previous year, although with prices recovering. Overall net sales increased from EUR316.1m to EUR345m (+9.1 per cent).
USA
The US market was strongly affected by unprecedented rainfall, above all in September. Economic activity continued to expand, driven by domestic demand and accompanied by a sustained increase in the employment rate, while inflation declined to 2.3 per cent at the end of September. Overall net sales amounted to EUR791m, down EUR61.2m compared to EUR852.2m achieved in the same period of 2017 (-7.2 per cent). Net sales were negatively affected by the depreciation of the dollar; at constant exchange rates turnover would have decreased by 0.5 per cent.
Mexico
In Mexico ready-mix concrete output continued to be weak but with prices in local currency strongly increasing. Net sales in local currency declined by 1.9 per cent. The weakening of the Mexican peso (-8.2 per cent) had a negative impact on the translation of the results into euro; with reference to 100 per cent of the associate, net sales decreased from EUR529.3m to EUR479.6m (-9.4 per cent).
3Q18
During the 3Q18, in all the countries in which Buzzi Unicem operates, the construction sector maintained a rather favourable momentum, although slowed by results significantly below expectations in the USA, mainly due to the weather conditions, as well as by the continuation of the unfavourable cycle in Ukraine.
Net debt as at 30 September 2018 amounted to EUR723.4m, down EUR139.1m compared to the end of December 2017. The figure was affected by total capital expenditures of EUR218.8m (EUR158m in 2017), of which EUR66.6m referred to equity investments among which, in particular, the acquisition of Seibel & Söhne, a company that operates with an integrated cement plant in Erwitte, North Rhine-Westphalia, Germany.
Outlook
The updated version of the forecasts formulated a few months ago indicates a worsening of the outlook concentrated in the US and Italy, and that the unfavourable differenceaccumulated to date in terms of operating results will be difficult to recover. The recurring EBITDA for the whole of 2018 will remain some percentage points below the level of the previous period, said Buzzi Unicem.
