Italcementi releases 1H14 results

2Q14 highlights

• Consolidated revenue fell from €1.191 billion in 2Q13 to €1.115 billion in 2Q14.
• Recurring EBITDA was more or less in line with last year, coming in at €209.3 million compared to €209.8 million in 2Q13.
• EBIT reached €103.9 million, an increase on the €94.5 million achieved in the corresponding period in 2013.

1H14 highlights

• Consolidated revenue fell by 5% to €2.048 billion. The decline has been attributed to slower business performance, a negative exchange rate effect and lower sales volumes. However, a marginally positive consolidation effect of +0.1% was reported, along with higher sales prices in Egypt and Thailand.
• Recurring EBITDA came in at €304.8 million, up 2.2% on 1H13’s €298.2 million. The rise was aided by the sales price factor and income from CO₂ emission rights.
• EBIT grew by 27.7% y/y to €99.8 million.
• At the close of 1H14, net debt was €1.851 billion, some €82.3 million less than net debt at the end of 2H13 (€1.934 billion at 31 December 2013).
• Total loss for 1H14 was reported at -€79.6 million.
• Capital expenditure was higher than in 1H13 at €277 million compared to €140.9 million. This is due to investment in the Rezzato plant, Italy, and the Devnya plant, Bulgaria, which are being revamped. The work is scheduled for completion at the end of 2014. The increase was also driven by investment in a new grinding centre in India.

Cement, clinker, aggregates and ready-mixed concrete – 1H14

Cement and clinker sales totalled 21.7 million t, just 0.5% lower than in 1H13 despite a slow 2Q14. Volumes increased by 1.1% to 7.3 million t in Central and Western Europe, where improvements in Spain and Greece helped to mitigate a drop in sales in France, Belgium and Italy. Sales of cement and clinker declined by 4.8% to 1.9 million t in North America as a result of harsh weather at the start of the year. In Asia sales were up 2.6% to 5.5 million t, while Emerging Europe, North Africa and the Middle East recorded a slight drop of 0.5%. Positive performances were reported in Egypt, India and Thailand, with sales up 4 – 5%.

Sales volumes of ready-mixed concrete were down 8.1% to 5.7 million m3. Volumes grew in Asia but declined elsewhere, particularly in Morocco and Central Western Europe. Aggregates volumes contracted 6.3% to 15.4 million t. Aside from Italy and Greece, Italcementi has reported a general slowdown in sales.

“Our results at the end of the first half are in line with our programs,” said Group CEO Carlo Pesenti. “We continue to focus on containing production costs and on maintaining a solid financial position, partly in connection with commitments to complete our strategic projects, primarily in Italy and Bulgaria. The situation at the half-year stage and the projects we have planned, including the total success of the plan to strengthen the Group’s capital position and simplify its governance through which we have acquired full control of Ciments Français, mean we can confirm our expectation of an improvement in full-year EBITDA.”

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/31072014/italcementi-1h14-results-highlights-209/