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Cementir Holding reports first results after Italian divestment

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World Cement,

Rome-based building materials group, Cementir Holding, announced a fall in like-for-like earnings in 1Q18. The company reported €24.1 million compared to like-for-like earnings of €27.5 million in 1Q18. Like-for-like earnings exclude results from Cementir Italia, which was sold to Italcementi in an acquisition that closed in early January 2018.

Despite lower earnings, the company reported higher like-for-like sales volumes. Combined sales of grey and white cement were 2.079 million t in 1Q18, a 4.1% rise compared to 1Q17. Ready-mixed concrete and aggregates volumes were also up in the quarter.

Positive results from Turkey helped bolster the company’s performance, which was hit by continued weakness in Egypt, as well as harsh winter weather and an early Easter holiday period in Europe. Turkish sales of cement and clinker were up 18.5%, as domestic demand boomed.

The higher volumes, coupled with higher pricing, led Turkish EBITDA higher, despite a strong depreciation of the lira against the euro.

News was also positive in the companies Asian businesses with earnings up strongly in China, despite a fall in volumes. Pricing was up 9.5% in China, leading earnings up 20.3%. Sales volumes were up in Malaysia, although earnings suffered from lower prices on the export market and higher costs.

The company also released a its business plan for the three years to 2020. Heading the list of priorities is the cutting of its debt load by around 90% from €537 million in 2017 to just €50 million in 2020.

The plan also targets an increase in revenue from sales to €1.34 billion in 2020, compared to €1.14 billion in 2017. Targeted earnings in 2020 are €270 million, compared to €213 million in 2017, to be driven by the company’s operations in the UE, northern Europe, and Turkey.

Operationally, the company will focus consolidating its global leadership in the white cement market, as well as the innovation of new products, including ultra-high performance concrete, glass-fibre reinforced concrete, magnetic concrete, and 3D printing of concrete. Investment over the period will focus on developing production capacity and maintaining plant efficiency.

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Cement news 2018