Italian cement company Buzzi Unicem has released its preliminary results for the financial year 2013.
FY13 results
- Cement sales of the Group totalled 27.4 million t, a 0.3% y/y increase compared to 27.3 million t in FY12.
- Sales of ready-mixed concrete stood at 12.9 million m3, a 5.1% y/y decrease from 13.6 million t in FY12.
- Consolidated net sales saw a 2.1% y/y decline from €2.813 billion in FY12 to €2.754 billion in FY13. Foreign exchange rates negatively impacted for €50 million and changes in scope were favourable for €6 million.
- Net debt amounted to €1.066 billion, down by €59 million from €1.125 billion in FY12. This improvement was obtained as a result of cash flow from operations, control of capital expenditure, disposal of non-strategic assets and a cautious dividend policy.
Italy
Cement domestic consumption, which has been falling for seven consecutive years, is estimated at around 21.7 million t (a 54% decrease from the 2006 all-time peak). Sales volumes of hydraulic binders and clinker decreased by 3.1% y/y. Stronger export deliveries and the supply of clinker to industry customers made it possible to report a sales contraction less negative than that of the domestic market (around -15%). Selling prices posted a 2.1% decrease, mainly as a consequence of a change in sales mix. In the ready-mixed concrete sector, volumes trend was very negative (-18.5%), reflecting a commercial policy directed towards a strict selection of customers while prices were stable (+0.5%). Overall net sales in Italy amounted to €435 million, a 9.2% y/y decrease from FY12.
Central Europe
The construction sector in Germany bounced back after having been affected by a harsh climate in 1H13. Buzzi Unicem posted a good recovery in cement deliveries in 2H13, closing the year slightly down on FY12 (-0.8%) in a slightly favourable price environment (+1.2%). Exports and sales of oil well binders rose while those of white cement slowed down. Ready-mixed concrete volumes were stable (-0.9%) with prices up by 1.7%. Overall net sales decreased from €604 million in FY12 to €600 million in FY13, a 0.7% y/y decline.
In Luxembourg, cement volumes (inclusive of internal sales) were affected by a decrease in exports and contracted by 3.7% with stable average prices. Overall, net sales stood at €109 million in FY13, compared to €104 million in FY12, a 4.9% y/y increase.
In the Netherlands, the economic recession impacted negatively upon the construction industry. Ready-mixed concrete volumes decreased by 15.3% y/y while the average price level declined by 3.7%. Net sales, including aggregates business, came in at €73 million in FY13, down 16.4% y/y from €88 million in FY12.
Eastern Europe
In Poland, sales volumes increased by 2.5% y/y, with average prices in local currency slightly down (-1.8%) and ready-mixed concrete output declined by 17.4% y/y. Net sales decreased from €109 million in FY12 to €101 million in FY13, on which zloty devaluation negatively accounted for €0.3 million.
The Czech Republic featured a macro-economic recession scenario that translated into a contraction of GDP (-1.5%). Cement sales decreased by 15.5% y/y while average prices in local currency were almost stable (-1%). The ready-mixed concrete sector (including Slovakia) showed a weak trend with volumes down 4.5% y/y and slightly higher prices (+1.7%). Net sales decreased by 11.9% y/y from €150 million in FY12 to €132 million in FY13. The devaluation of the local currency negatively impacted net sales by €3.7 million.
In Ukraine, construction investments showed a remarkable decline, leading to a drop in cement demand. Cement volumes decreased by 7.3% y/y in a slightly positive price environment (+2.4% in local currency). Net sales stood at €124 million in FY13 compared to €134 million in FY13, a 7.8% y/y decrease.
In Russia, the construction sector maintained a favourable trend, as did domestic cement consumption, which broke the record realised in 2012. The pace of deliveries progressively accelerated in 2H13, increasing by 7.3% y/y with average selling prices in local currency rising by 5.8%. Net sales increased by 6% y/y from €235 million in FY12 to €249 million in FY14.
USA
Hydraulic binders sales maintained a constant pace of growth throughout FY13, increasing by 8.7% y/y with the best performances realised in the North Eastern, South Eastern and South Western regions. Selling prices also improved, posting a 3.2% increase in local currency. In the ready-mixed concrete sector, volumes trend was less dynamic (+5%) but price environment was more favourable (+6.4%). Overall, net sales were up 7.3% to €730 million in FY13 from €681 million in FY12.
Mexico
Corporación Moctezuma’s cement volumes were down 9% y/y and prices in local currency decreased by 7.2%, penalised by poor demand and more competition. Ready-mixed concrete output posted a less marked decline (-3.4%) with stable prices (+1%). Net sales decreased by 12.9%, totalling €235 million in FY13.
Adapted from press release by Rosalie Starling