Displaying items by tag: Italy
Buzzi purchases more of Dyckerhoff
26 November 2012Italy/Germany: German cement maker Dyckerhoff has announced that its parent company, Italy's Buzzi Unicem, has agreed to buy additional ordinary and preferred shares in it, raising its total share capital in the firm by 3.6% to 96.6%.
The German company did not reveal the value of the transaction but specified that during the current year and including the most recent agreement Buzzi Unicem had bought shares in it for some Euro71.7m.
As a shareholder of at least 95% of Dyckerhoff, Buzzi Unicem is entitled, under the German law, to start a 'squeeze-out' procedure for the remaining shares that it does not already own. However, it has not yet made any final decision on such a move, according to Dyckerhoff.
Grim and grimmer: European cement production so far in 2012
14 November 2012The results are in from the European cement majors and the news from the Mediterranean producers is grim. A common phrase found in most of these financial reports was the 'challenging economic environment' in western Europe. Here's what this means.
In Spain, Cemex saw its net sales in its Mediterranean region (consisting mainly of Spain) slump by 17% to Euro1.10bn. Cementos Portland Valderrivas (CPV) posted a loss of Euro83m for the first nine months of 2012, almost 10 times the loss for the same period in 2011. In July 2012 the Spanish cement association Oficement noted that demand had fallen by 60% year-on-year.
In Italy, Italcementi reported a 92% crash in net profit, to Euro17.1m, for the first nine months of 2012, and a drop in revenue of 4%, to Euro3.39bn, for the first nine months of 2012. Buzzi Unicem reported a 21% decline in sales volumes of cement and clinker, and a drop in sales of 15% to Euro430m. Vicat reported that Italian sales across all its business lines were down by 9% for the year.
By contrast, beleaguered Greek producer Titan has finally started to show a (slight) increase in its revenue. It has been able to report a second consecutive quarter where turnover has risen year-on-year. Although Titan's net profit for the same period still plummeted by 96% to Euro2m.
Elsewhere progress of a kind is being made despite the ongoing European slump, mainly due to profitable assets held outside of western Europe.
Lafarge reported that its overall sales were up by 4% to Euro4.39bn in 2012 so far. Yet its income has fallen by 44% to Euro332m and its profits are suffering from its restructuring programme. In western Europe Lafarge noted that cement volumes were down by 11% to 12.5Mt so far in 2012 and that sales were down by 9% to Euro2.43bn.
Holcim reported a 5% increase in overall net sales and a 7% increase in operating profits to Euro1.57bn. In western Europe Holcim's sales volumes were down by 4.6% (like-for-like) to 20.1Mt and sales were down by 6% to Euro3.68bn.
HeidelbergCement reported a 2.5% increase in overall sales but pre-tax profits have fallen by 5% to Euro601m. HeidelbergCement's revenue from its cement business in western and northern Europe was down by 5% to Euro1.3bn. Buzzi Unicem reported overall flat sales at Euro2.15bn but net profit rose by 50% to Euro85m. Despite this Buzzi Unicem reported a drop of 8.5% in Germany.
Vicat reported little change in sales at Euro1.73bn for the year so far. Vicat's financial reporting made it hard to tell how much was lost in Europe but French cement sales were noted as being down by 12%. Cemex's sales volumes were down by 13% in northern Europe, with net sales down by 15% to Euro3.09bn. Italcementi's cement sales volumes in central and western Europe fell by 16.8% to 12.2Mt.
Of the major producers only Lafarge failed to state the obvious in its outlook about western Europe: that sales will continue to decline in 2012 and 2013. If Titan has set the bar for how much more pain the other European producers have yet to face then conditions are likely to get worse. Get ready for even more 'challenges' in 2013.
Buzzi profit bucks trend with increase
14 November 2012Italy: Buzzi Unicem has posted a net profit of Euro85m for the first nine months of 2012, a 40.4% increase year-on-year. Buzzi's net sales grew by 1.7% to Euro2.15bn and earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 11.7% to Euro368.7m. Its net debt fell to Euro1.10bn at the end of June 2012 from Euro1.14bn at the end of 2011.
On the basis of the results in the year so far, the company has raised its EBITDA guidance for 2012 to Euro450m.
Italcementi’s nine month profit crashes by 92%
08 November 2012Italy: Italcementi's net profit for the first nine months of 2012 has fallen by 92% to Euro17.1m from Euro213m in the same period in 2011. The Italian cement major blamed the on-going crisis in western Europe and new competition in Egypt and Morocco.
Italcementi's revenue for the year to 30 September 2012 fell by 4.4% to Euro3.39bn from Euro3.55bn. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 11.6% to Euro517m from Euro584m. For the third quarter of 2012, year-on-year decreases in revenue and EBITDA were similar to the year-to-date results. However, the company's net profit fell by 34.7% to Euro16.3m from Euro25m.
Italcementi's 'Central Western Europe' region sold 12.2Mt of cement during the first nine months of 2012, a drop of 16.8% compared to the same period in 2011. The 'Emerging Europe, North Africa and Middle East' region sold 11.1Mt, a drop of 4.9%. North America remained flat with 3.2Mt sold. Asia posted a rise of 7.1% with 7.6Mt sold.
In its report Italcementi singled out significant cement and clinker sales improvements in India and Thailand. Despite declining volumes in Egypt the company pointed out that as the country's political situation stabilises, the strengthening upturn in consumption could offer opportunities for improvements in group operations on the main market in the North Africa and the Middle East.
In its outlook the company called for greater caution given an intensification of decline in demand in the third quarter of 2012. It also mentioned that, in addition to completing the investments and efficiency measures planned during the year, the company is preparing new measures to 'significantly' reduce operating costs.
Italcementi bucks trend with Euro150m eco-investment
25 October 2012Italy: Italcementi has announced that it will invest Euro150m in order to revamp its cement plant in Rezzato, which was built in 1964. Italcementi has stated that it wants to turn the plant into the most modern and ecological cement plant in Europe, with work set to start in November 2012. It said that the opening of the adapted plant would be scheduled for some time towards the end of 2014.
Italcementi's CEO Carlo Pesenti said that the restructuring would lead to an improvement in the environmental and economic sustainability of the plant, as well as cutting production costs by 23% and reducing specific consumption of raw materials by 8%.
Italcementi plant seized by court for EU emissions breach
11 October 2012Italy: Italian police have impounded Italcementi's Colleferro plant south of Rome for allegedly breaching emission limits. The company has been given 10 days to finish updating its facilities to bring them in line with European Union regulations. Production will continue during this period.
Italcementi said that the process of updating the plant had already been underway and would continue under special administrators appointed to operate factory by an Italian court. Colleferro has a capacity of 1.5Mt/yr and employs about 200 workers.
Justice officials said that the seizure for violation of pollution regulations was ordered by a court in the nearby town of Velletri, based on a report by the regional environmental protection agency, Arpa. This is the second case so far in 2012 of an Italian court seizure of a major factory for environmental reasons. Europe's biggest steel plant Ilva, based in southern Italy, was ordered to shut down in September 2012 by a court due to toxic emissions.
Italian workers occupy cathedral bell tower to protest layoffs
26 September 2012Italy: Two Italcementi workers have protested against company layoffs by occupying the bell tower of the Cathedral of St. Nicholas in Sassari, Sardinia. The workers climbed up on 19 September 2012 in what they described as a 'sit-in prayer'. Union representative Simone Testoni said that workers to be laid off in November 2012 still haven't been told what the company's next move will be.
Italcementi reached a deal in 2008 with the regional government in which it pledged that while consolidating all its operations on the island, it would transfer existing employees rather than lay them off. Yet in May 2010 the factory closed. Italcementi blamed the economic crisis.
Italcementi results for 2012 so far
01 August 2012Italy: Italcementi Group has released consolidated results for the six months to 30 June 2012, which show mixed results across its operations. Revenue and earnings were both down, as was the group's net profit, which was drastically down due to the absence of a major one-off receipt seen in the year-ago period. The company announced that it expected the second half of 2012 to be broadly in line with that of 2011.
The group's consolidated revenue for the first half of 2012 was Euro2.29bn compared to Euro2.42bn in the first half of 2011. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Euro328.7m compared to Euro371.7m in the first half of 2011. Italcementi's total profit for the period was Euro0.8m, compared to Euro187.8m in the first half of 2011. This apparent drop was due to the absence of a receipt from the sale of Turkish operations, which was conducted in the first half of 2011.
In the first half of 2012 consolidated cement and clinker sales totalled 23.5Mt, a drop of 7.5% compared to the first half of 2011. The reduction was largely due to the decline in central western Europe and, to a lesser degree, in Egypt. Sales in Asia continued to make good progress and sales volumes in North America and Bulgaria showed a strong recovery.
Italcementi said that its first half results confirm the upturn in North America and the recovery in prices in some markets, although demand was down in the Eurozone. Among emerging countries, it recorded positive market performances in India and Morocco, while the sales trend in Egypt remained negative, although better than expected. It added that its withdrawal from the Turkish market a and new strategic agreement in China had generated positive impact on its financial position.
Going forward, Italcementi said that the effects of efficiency measures, together with a positive dynamic in prices on a number of markets should enable it, in the absence of currently unforeseen events, to reach full-year operating margins broadly in line with those of 2011.
Buzzi Unicem reports Euro45.9m loss in Q1
16 May 2012Italy: Buzzi Unicem has reported a widened net loss of Euro45.9m for the first quarter of 2012 from Euro32.8m for the same period in 2011, a drop of 29%. The producer, Italy's biggest cement maker by market value, blamed the performance on lower cement demand and the extremely cold winter in Europe.
Net sales fell by 1.3% year-on-year to Euro562.2m. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 47.6% to Euro22.4m. The net debt rose to Euro1.21bn at the end of March 2012 from Euro1.14bn at end of December 2011. Buzzi Unicem confirmed it expects to post in 2012 operating results similar to the ones booked in 2011.
Italcementi back in the red
08 May 2012Italy: Italcementi has posted a net loss of Euro34.6m for the first quarter of 2012, compared with a net profit of Euro127.6m for the same period of 2011. The 2011 results benefited from the sale of Italcementi's operations in Turkey.
Revenues fell by 6.8% year-on-year to Euro1.07bn. Recurring earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 3.1% to Euro126.7m and EBITDA went down by 8.7% to Euro135.5m. Earnings before interest and tax (EBIT) slumped by a massive 41.4% to Euro21.3m.
Italcementi posted a pre-tax loss of Euro7.8m for the quarter compared with a pre-tax profit of Euro24m for the first quarter of 2011. Its net financial debt rose to Euro2.18bn on 31 March 2012 compared to Euro2.09bn at 31 December 2011.