Buzzi Unicem’s 1Q12 results affected by extreme and unseasonable weather conditions

Cement and ready-mix 1Q12 results

Buzzi Unicem’s net sales dropped by 1.3% y/y in the first quarter of 2012, falling from €569.4 million to €562.2 million. The company also announced a 40.2% decrease in net profit and a decline in EBITDA of 47.6%. The losses come on the back of falling cement and ready-mix sales, which were impacted by the extreme cold weather in Central Europe. Overall, sales of cement and ready-mix fell 4% and 12.5% y/y, respectively. However, the quarter saw positive growth in the US, Mexico and areas of Eastern Europe.

Central Europe

Cement sales in Central Europe were hit particularly hard by the cold winter weather, which stood in contrast to the favourable weather conditions in 1Q11. In Italy, net sales fell by 13.9% from €131.7 million to €113.4 million. In Germany, February shipments suffered from the cold snap, with cement sales volumes dropping by 14.1% in 1Q12. Cement and clinker sales suffered an even greater decline of 17.3% in Luxembourg.

Eastern Europe

Overall, net sales increased by 9.7% from €86.4 million in 1Q11 to €94.8 million. EBITDA more than doubled, rising from €2.4 million to €5 million. Although cement volumes fell by 25.7% in the Czech Republic due to fewer exports, sales volumes increased in Poland, Russia and Ukraine by 16.7%, 11.8% and 6.2%, respectively. 

USA

In contrast to Europe, the weather conditions in the US in 1Q12 were unseasonably mild, which had a positive impact on cement sales volumes in the region. Cement sales increased by 15.2%, whilst ready-mix concrete grew by 3.6%.

Mexico

Moctezuma’s cement sales volumes rose by 11% y/y in 1Q12 and EBITDA increased by 10.4%.

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/15052012/cement_buzzi_unicem_results_sales_2012/