Spain’s Cementos Portland Valderrivas (CPV) saw revenues fall by 20% y/y to €270 million in 1H13 as cement demand continued to decline in Spain. Revenue was also hit by lower sales of CO2 trading rights. The company’s US subsidiary helped to mitigate these results somewhat. The cement manufacturer’s operations outside of Spain accounted for 58% of the total revenue, a contribution of €158 million. EBITDA fell by 18% y/y from €31.1 million to €25.5 million.
However, CPV managed to reduce its losses by 98.9% from €48.6 million in 1H12 to €0.6 million in 1H13. The company carried out an asset swap with Ireland’s CRH in February, which involved CPV transferring its 99.03% stake in Cementos Lemona to CRH and CRH transferring its 26.34% stake in Corporación Uniland to CPV, meaning that CPV now has a 99.99% share of Uniland. In addition, CRH purchased a CPV-owned cement terminal in the UK for the price of €22.1 million. As a result of these transactions, €104.8 million worth of pre-tax capital gains was generated.
Responding to the declining Spanish market
CPV is taking measures to adapt to the current state of the cement industry in Spain, including revising its 2012 – 2021 business plan and expanding its NewVal Plan. The company has also temporarily shutdown some of its Spanish plants and will close unprofitable concrete, mortar and aggregates plants. Furthermore, CPV’s corporate structure will be centralised and streamlined and wages will be reduced. These measures will enhance the company’s recurring EBITDA by approximately €40 million, with an extraordinary cost of €29 million.
Adapted form press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/26072013/spain_cementos_portland_valderrivas_1h13_results_69/