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Revenues increase for Cementir Holding despite a fall in cement sales

World Cement,

Performance in 2012

Cementir Holding has released its preliminary consolidated results for 2012, with the definitive results due to be approved by the company’s Board of Directors in March. Cement and clinker sales volumes decreased by 6% y/y to 9.8 million t due to the contraction in the Italian and Egyptian construction markets, as well as a reduction in cement exports from Turkey. However, there were more encouraging results in China, where additional plant capacity entered its second full year of operation. Aggregates and ready-mix concrete sales levels were affected by bad weather in Italy and Turkey in 1H12. Aggregates volumes fell by 8.7% y/y to 3.5 million t in 2012, while ready-mix concrete dropped by 6.8% to 3.6 million m3.

EBITDA came in at €138 million, growing 11.1% y/y, and revenues totalled €976.2 million, up 4.6% y/y. The latter increase has been attributed to positive price developments across the company’s market regions.

Outlook for 2013

Cementir Holding predicts both revenue and EBITDA growth this year, as well as a slight increase in sales levels. Although further spending cuts are likely to impact the Italian construction sector, and the outlook for Egypt remains uncertain due to political and economic events in the country, there is a positive trend for concrete in Sweden and Norway and for white cement in China. Cement sales in Denmark are expected to remain at a similar level to 2012. Sales volumes in Turkey are likely to be affected by reduced demand from the residential construction sector, although this should be offset by investment in infrastructure.

The firm has launched a programme to enhance its profitability by optimising logistics and simplifying its corporate structure. It is hoped that these measures could bring about a saving of around €30 million from 2014.

Adapted from press release by Louise Fordham.

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