Italcementi’s financial results in 1H13 suffered a year-on-year decline, although more positive results in 2Q13 reveal an improvement. In the first half of the year, consolidated revenue fell 6.2% y/y to €2.16 billion due to lower sales volumes and the impact of a negative exchange rate. However, in 2Q13 the decline in revenue slowed to -3.6%, falling slightly from €1.24 billion in 2Q12 to €1.19 billion in the same period this year. Both recurring EBITDA and EBIT improved in 2Q13, rising to €210.1 million from €202.6 million and to €93.9 million from €78.9 million, respectively. In 1H13, recurring EBITDA came in at €298.6 million, 10.6% lower than in 1H12, and EBIT fell by 27.1% to €77.4 million. Net debt at the end of June 2013 was in line with June 2012, coming in at €2 billion. Italcementi recorded a loss of €43.3 million in the first six months of the year, compared to a profit of €1.3 million in 1H12.
“Our programme to contain fixed costs, together with close control of variable costs, enabled us to lower our breakeven point, slightly ahead of our targets, despite continuing difficulties in market conditions, especially in Italy,” said Italcementi Group Chief Operating Officer Giovanni Ferrario. “The improvement in cash flow from operating activities and working capital helped us maintain the structural strength of the Group’s financial position.”
Cement sales improve in Asia and North America
In 1H13, Italcementi sold 21.8 million t of cement, down 7.1% y/y. Sales volumes in Central Western Europe fell by 12.4% to 7.2 million t, while in Emerging Europe, North Africa and the Middle East cement sales volumes dropped by 11.7% to 6.9 million t. In Morocco, sales were hit by poor weather conditions and fuel supply affected sales volumes in Egypt. However, cement sales in North America increased by 1% to reach 2 million t and in Asia volumes were up 5.3% to 5.3 million t.
Aggregates sales volumes fell by 4.7% to 16.4 million t in 1H13. Although volumes grew by 26.2% in Emerging Europe, North Africa and the Middle East, volumes declined in both Central Western Europe and North America. Total sales of ready-mixed concrete came in at 6.3 million m3, down 4.9%. Despite higher sales volumes of ready-mixed concrete in Asia and Emerging Europe, North Africa and the Middle East, volumes decreased in Central Western Europe and North America.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/22082013/italcementi_first_half_2013_results_122/