Italcementi releases its half-year financial results

Italcementi has released its financial results for the first half of 2012, following approval from the Board of Directors. The Group reported a consolidated revenue of €2299.8 million, a 4.9% fall from 2011’s €2418.5 million. The most significant drops in revenue were experienced in France, Belgium, Egypt, Spain and Italy as investment in the construction sector declined dramatically. However, there was revenue growth in India and North America. Total profit for January – June stood at €0.8 million, or €187.8 million if capital gains from the sale of the company’s Turkish operations are included in the figure.

Sales

Cement and clinker sales declined by 7.5% y/y to 23.5 million t as a result of declining sales volumes in Central and Western Europe. Sales levels continued to grow in Asia, reaching 5.1 million, while the gradual return to health of the North American construction industry boosted cement and clinker sales in the continent.

Aggregates sales levels dropped 13.6% y/y to 17.2 million t while ready-mixed concrete sales fell 11.3% y/y to 6.6 million m³.

Cementificio di Montalto S.p.A merger

Approval has been given for the merger of subsidiary Cementificio di Montalto S.p.A with Italcementi. The merger, which is set to become effective at the end of 2012, will provide administration and management cost savings.

Outlook

The Group forecasts that it will reach full-year operating margins to match those of 2011 despite falling demand in Europe. This is due to growth in North America and the emerging markets, as well as the impact of previously introduced efficiency measures.

Adapted from press release by Louise Fordham.

Read the article online at: https://www.worldcement.com/europe-cis/01082012/cement_italcementi_half_year_results_1182/