Ciment Francais 1H results suffer from 1Q slump

Cement and clinker sales

In the first quarter, sales slowed significantly due to poor weather conditions in Europe, North America and some parts of North Africa. There was recovery in the second quarter, but it was insufficient to make up the losses in 1Q, leading to an overall contraction of cement and clinker sales in 1H of 4.8%. The decline was particularly noticeable in Western Europe (-5.8%), Emerging Europe and North Africa and Middle East (-11.7%). In Egypt, fuel supply issues brought sales down by 18.2% and Morocco also saw a decline of 8.6%. In the second quarter, the trend improved in Europe and Morocco, Asia was stable and North America was more positive.

Group revenues

In all, revenues for the first half amounted to €1831.1 million, down 4.2% on 1H12. However, at comparable scope and exchange rates, this figure comes down to a 1.7% decrease and an increase in revenues can be seen in Kazakhstan, Thailand, Egypt and Kuwait. Recurring EBITDA hit €307.3 million, down 5.2% due to reduced sales, increased costs and the absence of CO2 emission allowances. These effects were partially offset by positive price trends and efficiency improvement programmes, which raised over €40 million in 1H13.

Net consolidate group profit totalled €48.4 million, down from €75.8 million in 1H12, while investments in industrial assets over the six-month period totalled €125 million, slightly up from last year’s €122.4 million in the same period.

Net financial debt has improved by €38.1 million over 1H13 and the debt-to-equity ratio reached 22.3% from 22.4% as of the end of December 2012.

Outlook

Operating results in the second half are expected to be in line with 2H12, as the impact of certain action plans and the improvement in some Group markets take effect. However, it is likely that the full year results will remain affected by the 1Q slump. The trends in some markets, such as Egypt, are difficult to forecast.

Adapted from press release by Katherine Guenioui.

Read the article online at: https://www.worldcement.com/europe-cis/31072013/ciment_francais_1h_results_issued_83/