Exchange rates dent Vicat’s otherwise positive 1Q18
Published by Jonathan Rowland,
Editor
World Cement,
French building materials multination has reported sales of cement up 6.5% in 1Q18 at 5.21 million t, as the company reported a positive 1Q18. Sales volumes of concrete and aggregates were also up, resulting in total consolidated sales revenues of €573 million in the first three months of the year, an increase of 3.8%.
“Our business recorded significant growth during 1Q18,“ said the company’s Chairman and CEO, Guy Sidos. “We posted significant business growth in Turkey, the US, and Kazakhstan, excluding currency effects. The gradual recovery continued in France, and India was boosted by the start-up of new infrastructure projects.”
In Switzerland and Egypt, the company reported less positive results, as business was impacted by adverse weather in the Alpine nation and military operations around its plant in Egypt. Sales also dropped in Italy, again due to severe weather.
Exchange rate headwinds also took some of the shine off the company’s results. At constant exchange rates with 1Q17, the company would have registered sales revenue up 10.8%, rather than the 3.9% reported.
Euro appreciation is anticipated through the rest of the year, continuing to hit Vicat’s euro-denominated results. Energy prices are also expected to rise, leading the company to focus on “expanding sales volumes, raising selling prices where the competitive environment permits, and continuing to pursue its policy of optimising production costs.”
Read the article online at: https://www.worldcement.com/europe-cis/08052018/exchange-rates-dent-vicats-otherwise-positive-1q18/
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