Displaying items by tag: Ciments Français
Ciments Français revenue slumps to Euro3.73bn in 2012
06 March 2013France: Ciments Français has reported that its consolidated revenue for 2012 fell by 2% to Euro3.73bn from Euro3.82bn in 2011. The Italcementi subsidiary blamed the Eurozone crisis.
Ciments Français' net consolidated profit fell to a loss of Euro85.1m, following Euro270.9m in impairment losses. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 9% to Euro658m from Euro725m. Overall sales volumes for cement and clinker fell by 2.7% to 39.3Mt. This was mainly due to drop in sales in France, Belgium, Morocco and Egypt.
By region, Ciments Français' Western Europe grouping saw its revenue fall by 8% to Euro1.62bn. EBITDA fell by 22% to Euro256m. In North America revenue remained stable at Euro440m and EBITDA more than doubled to Euro51.3m. In Emerging Europe, North Africa & Middle East revenue declined very slightly to Euro1bn. Here EBITDA fell by 9% to Euro287m. In Asia revenue rose by 14% to Euro521m and EBITDA remained stable at Euro84.5m.
In its outlook for 2013 the group expected poor performance in Europe, growing performance in the US and high performance in most emerging countries led by demand for construction materials. Overall the group forecasts for 2013 that its profitability will remain similar to 2012.
Ciments Français revenue down by 2.5% to Euro3.73bn in 2012
06 February 2013France: Ciments Français has reported that its revenue has fallen by 2.5% to Euro3.73bn in 2012 from Euro3.82bn. It has attributed the decline to the impact of the economic crisis on construction material demand, particularly in industrialised countries.
In its press release with the results Ciments Français commented that its sales increased in most emerging countries, especially those in Asia. During the fourth quarter of 2012, the trend improved significantly in the cement and clinker sector with stable sales, following decreases over the first three quarters.
By volume the group sold 39.3Mt of cement and clinker in 2012, a decrease of 2.7%. By region sales volumes fell by 8.8% to 9.3Mt in 2012 in the group's Western Europe region. Sales also fell in the group's Emerging Europe, North Africa and Middle East region, by 4.5% to 14.9Mt. Volumes remained steady in North America at 4.2Mt and increased in Asia by 8.8% to 10.1Mt. Notably, the group preformed significantly better in the fourth quarter of 2012 for volumes sold of cement and clinker with all regions doing better compared to the same quarter of 2011.
By revenue the group's cement and clinker business fell by 1% to Euro2.51bn in 2012 from Euro2.54bn in 2011. The cement and clinker business comprised 67% of the group's total revenue in 2012. Geographically, the group's Western Europe region comprised 43% of the group's revenue, the single largest area in terms of location.
France: Italcementi subsidiary, Ciments Français, has agreed to acquire a 6.25% stake in West China Cement (WCC) becoming one of the main shareholders of the Chinese group.
The agreement foresees the sale to WCC of 100% of the share capital of Shaanxi Fuping Cement Company (Fuping Cement) acquired by the Italcementi Group in 2007 against the subscription of a reserved capital increase of WCC. Fuping Cement in turn also owns 35% of the share capital of Shifeng Cement acquired in 2010. Under this agreement, Ciments Français will own a 6.25% stake in the Chinese group, becoming the third largest shareholder of WCC. Ciments Français will be represented with one member on the Board of Directors of WCC.
The transaction is based on a valuation of Fuping equal to approximately Euro87m gross of the net financial debt of the company, approximately Euro26m of which will be deconsolidated. Ciments Français will underwrite 284.2 million shares of WCC at the price of Euro0.216/share.
WCC, a holding company listed in Hong Kong since 2010 with a current market capitalisation of approximately Euro780m, has a total production capacity of approximately 20Mt/yr in Shaanxi and Xinjiang, which will grow before the end of 2012 to 24Mt/yr produced in 15 cement plants (including Fuping Cement and Shifeng Cement). In 2011 WCC reported net revenues close to Euro380m and a net profit of approximately Euro80m.
The transaction, which is subject to the approval of the competent Chinese authorities, is expected to close by the end of the second quarter of 2012.
France: The board of directors of Ciments Français, part of the Italcementi Group, has examined and approved the audited annual and consolidated accounts as of 31 December 2011, which show a net consolidated profit of Euro274m, a 13.7% drop year-on-year.
Cement sales volumes for the entire year were down by 1.4% at 42.4Mt. Ciments Français Cement sales improved in France, North America, Morocco and India but decreased in Egypt due to the political crisis there. An overall fall in demand, strong inflation on fuel prices and negative translation effects resulted in deterioration in the company's operating results. These impacts were only partly mitigated by efficiency measures implemented throughout the year.
As of 31 December 2011, Group consolidated revenues were Euro3.89bn, down by 3.8% year-on-year. Its recurring earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to Euro702m, down by over 20% year-on-year. Earnings before interest and tax dropped by 38% to Euro309m following recognition of Euro359m in depreciations and Euro53.4m in impairment losses, mainly in crisis-hit Spain and Greece.
Group investments in industrial and intangible assets amounted to Euro301m as of 31 December 2011, down by 25.6% compared to 31 December 2010. They mainly related to the strengthening of production in France, Belgium and Egypt and an increase of production capacity in India and Morocco.
A tight management of cash flows, the disposal of assets in Turkey and the sale of subsidiary Axim contributed to strengthen Ciments Français' net financial position. At the end of December 2011, its net financial debt was reduced by Euro390m to Euro1.02bn compared to Euro1.41bn as of 31 December 2010.
Regarding 2012 Ciments Français reported that the markets in which it operates should be more stable. Sales volumes are expected to stabilise at a level similar to that of 2011, increasing in North America and Morocco while declining in southern Europe. Egypt remains a source of uncertainty. Prices are likely to trend more positively and partially offset the rise in energy costs and the impact of inflation on fixed costs. Additionally, the efficiency programs launched in 2011 should increase operating results in 2012.
The group will initiate a new cycle of investments in 2012 related to its industrial facilities, mainly in Gulbarga, India and Bulgaria. In Morocco, the group expects a new expansion phase after the commissioning of the Ait Baha plant.
Italcementi exits Turkey
16 February 2012Turkey: Italcementi has announced that it has reached an agreement to sell 51% of its Afyon Turkish unit to Cimsa Cimento Sanayi ve Ticaret AS for Euro25m. The stake and the payment will be done at the closing of the operation, which has to be cleared by antitrust authorities. With the closing of this deal, and following the 2011 divestment of Set Group, Italcementi will be left without any presence on the Turkish market as a cement producer.
Ciments Français 2011 sales and revenues down marginally
08 February 2012France: Ciments Français, part of the Italcementi Group, has announced its consolidated revenues and sales results for the year ending 31 December 2011. These show that, in a difficult economic environment, group sales decreased marginally in its cement sector. Cement and clinker sales were down by 1.4% year-on-year to 42.4Mt in 2011 but sales increased in France, North America, India and Morocco.
In western Europe the company sold 9.9Mt of cement and clinker, an increase of 1.3% year-on-year. In North America it sold 4.2Mt, a 5.1% improvement on 2010. In 'emerging' Europe, north Africa and the Middle East it sold 16.1Mt of cement and clinker, 5.4% less than in 2010. In Asia the company sold 11.1Mt, up by 0.3% compared to 2010.
In the fourth quarter of 2011 Ciments Français' sales were down by 1.7% year-on-year at 10.2Mt. The group sold 2.2Mt of cement and clinker in western Europe (+0.7% year-on-year), 1.1Mt in North America (+7.4%), 4.0Mt in emerging Europe, north Africa and the Middle East (-3.0%) and 2.6Mt in Asia (-5.0%) during the final quarter. Sales in Thailand took a large hit due to the severe flooding there in late 2011.
The group's total consolidated revenues for 2011 across all of its business units came in at Euro3.89bn, which it attributed to reduced volumes and currency fluctuation effects in some countries, notably Egypt, North America and India. Revenues improved in France, Belgium and Thailand.
Its cement segment took in Euro2.59bn, a drop of nearly 8% compared to 2010. Sales were highest in western Europe (Euro1.27bn), followed by emerging Europe, north Africa and the Middle East (Euro1.03bn), Asia (Euro499.5m) and North America (Euro405.1m).
Ciments Français pushes to keep Euro50m payment from Sibtsem
13 January 2012Russia: Ciments Français has gone to court to keep a Euro50m advance payment from OAO Sibtsem Holding for Turkish cement assets that the latter company did not acquire.
Ciments Français filed a suit with the Russian supreme arbitration court on 20 December 2011 to recognise the ruling of the Istanbul arbitration court as of 7 December 2010. Under this ruling the French company does not have to return the advance payment to Siberian Cement for the acquisition of Turkish Set Group, which has four cement plants with a capacity 5Mt/yr. On 26 December 2011 the court accepted the suit for consideration.
In March 2008 Sibtsement announced that it would acquire Set Group from Ciments Français, having paid Euro377m and about 5% of its shares, estimated at Euro200m. The first instalment stood at Euro50m. However, the world financial crisis prevented the companies from closing the deal. In the autumn of 2008 the parties began discussing payment for the deal by instalments but they failed to reach an agreement.
In the summer of 2010 the arbitration court of the Kemerovo region in Russia confirmed that Ciments Français had to return the advance payment as the agreement was null and void. In early 2011 the Kemerovo court refused to confirm the Istanbul court ruling.
Sika picks up Italcementi’s admixture business
15 December 2011Switzerland/Italy: Sika AG, the Swiss specialty chemicals company, is to acquire the global concrete admixture and cement grinding aid businesses of the Italcementi Group (directly or indirectly controlled by Italcementi or Ciments Français). The businesses are on the market under the brand Axim. Axim has approximately 150 employees in Italy, France, the US, Canada, Morocco and Spain. In 2010 it generated sales of around Euro61m.
"This agreement will allow the group to capitalise the value of this business," said Giovanni Ferrario, COO of Italcementi Group. "Moreover, this will further extend the relationship between Italcementi and Sika, enhancing the reputation of both companies as innovators in the field of concrete and cement."
This acquisition allows Sika to significantly strengthen its market position in the relevant countries. As Sika's CEO, Ernst Baertschi, said, "This acquisition is a major step for Sika in the process of expanding market shares in the admixture business worldwide."
European firms release second quarter results
29 July 2011Europe: Several European cement producers have announced financial results for the second quarter and the first half of 2011. On 28 July 2011 Lafarge, the world's largest cement producer, announced that its profit fell by 16%, in part due to higher material costs (Read full story here). Other European producers have seen a mixed bag of results for the quarter, with Ciments Français and HeidelbergCement both reporting improvements over the year. Unlike the multinationals however, Cementos Molins and Titan, which both have significant interests in markets that are currently depressed, have had bad quarters.
Ciments Français took a consolidated revenue of Euro2.04bn in the first six months of 2011, down by 1.8% on the year. The group's recurring earnings before interest, tax, depreciation and amortisation (EBITDA) were down more significantly, by 12.8%, at Euro386.4m and its net profit was Euro232.2m. This compares favourably with the Euro166.9m made in the six months to 30 June 2010. The group's net debt was down by Euro218.2m to Euro1.19bn. Group sales volumes in the first six months of 2011 remained relatively stable (-0.7%) for cement and clinker at 21.9Mt. Sales volumes increased in India (+16.3%), France and Belgium (+10.8%), Thailand (+6.6%) and Morocco (+6.0%). Volumes dropped in Greece (-26.1%), Bulgaria (-25.0%) and Egypt (-14.1%). Volumes remained fairly steady in the group's other markets.
HeidelbergCement (HC) announced that its net profit grew to Euro208m in the second quarter, up by 25% on the same period of 2010. Revenue rose only slightly (3%) on the year to Euro3.4bn, burdened by negative exchange rate effects. The group's operating profit dropped by more than 10% to Euro441m, which the company attributes to rising energy costs that have not been offset by the implemented price increases. "Despite a positive development of revenue and results, we are not satisfied with the second quarter," said HC's CEO Bernd Scheifele, who added that the group's FOX 2013 fiscal savings programme had so far generated savings of some Euro134m. Its turnover for the second quarter was Euro3.39bn.
The attributable profit of the Spanish cement company Cementos Molins for the first half of 2011 went down by 57.8% year-on-year to Euro11.64m. Its turnover inched up by 0.6% to Euro400.23m. The 15% increase in the company's international operations offset a massive 24.7% fall that it registered in the domestic market. Its EBITDA amounted to Euro76.19m between January and June 2011, an annual decline of 16.2%.
Meanwhile, analysts are predicting an even worse time for Greece's Titan when it announces its results on 2 August. They expect its profit to drop by a staggering 64% amid the ongoing weakness in the Greek and US markets where Titan has a significant majority of its assets.
France/Italy/Turkey: French cement maker Ciments Français has said that it will sell its 51% stake in Turkish Afyon Çimento Sanayi TAS. The French company, part of the Italcementi group, has mandated Mediobanca to be its financial adviser in assessing and carrying out the potential sale of its stake.
In February 2011 Ciments Français started divesting assets in Turkey with the sale of Set Group Holding to diversified Turkish group Limak Holding. After the latest strategic move in Turkey, Mediobanca does not rule out that Italcementi may leave markets on which it has minor presence, such as China, Kazakhstan and Saudi Arabia.