Buzzi Unicem has released its financial results for the first three months of 2017, as well as the net financial position at the end of the quarter.
Sales volumes in 1Q17 showed a slight increase in comparison to 1Q16. The most crucial changes between the two periods, taking into consideration the number of working days in 2017, were recorded in Central Europe, particularly in Germany, where the dynamics of the construction sector continued to expand, and in Italy, thanks to the recovery in exports. In Eastern Europe, the decline in Russia was offset by positive development in the Czech Republic, Ukraine and Poland. Deliveries to customers in the US were largely similar to those achieved in 1Q16.
At the start of the year, the favourable indicators showing the consolidation of recovery prospects and the acceleration of international trade strengthened, also driven by the boost of expanding policies and the reinforcement of investments in many countries. GDP growth estimates for 2017 were revised upwards for most of the major advanced economies, while they remained essentially unchanged for emerging markets. In the US, the economic climate strengthened due to the resilience of private consumption and the growth of investment; the employment rate increased more that expected and the mood of confidence improved significantly. In Europe, the expansion of economic activity consolidated, driven by domestic demand and the strong recovery of investment. In the emerging economies, growth slightly strengthened in China, thanks to the recovery in exports and the persisting effects of the fiscal and monetary stimulus on domestic demand. It moderately decelerated in India, remained positive in Russia, benefiting from the recovery in oil prices, while no signs of recovery in Brazil have been shown yet. However, the gradual consolidation of global recovery remains subject to various uncertainties due, among other things, to the possibility that trade protection policies are being implemented, with the risk of adverse repercussions on commerce and overall economic activity. In the advanced economies, consumer inflation increased, mainly as a result of rising energy prices, while the underlying component underwent some modest changes.
Buzzi Unicem’s cement sales increased by 4.5% compared to 1Q16, reaching 5.2 million t. The volume trend was improving in all the countries of presence, excepting a moderate decline in Russia. Ready-mix concrete sales recorded a more evident favourable exchange in comparison to 1Q16, reaching 2.6 million m3. The higher number of working days compared to 1Q16 favoured the sales results achieved.
Consolidated net sales increased from €540.3 to €588.5 million (+8.9%), gross of a foreign exchange effect which was favourable for €16.8 million. Like for like, net sales would have increased by 5.8%. The volume effect and the price effect, both favourable, were respectively €22.0 million and €5.5 million.
Read the article online at: https://www.worldcement.com/europe-cis/16052017/buzzi-unicem-shows-increased-sales-volumes/