Cimpor-Cimentos de Portugal SGPS SA, the Portuguese cement maker with operations in a dozen countries, posted its fastest revenue growth in more than two years in the second quarter, led by expansion in Brazil.
Revenue rose 12 percent, the fastest pace since the fourth quarter of 2007, to 608 million euros ($784 million). Sales jumped 51 percent to 149 million euros in Brazil, which overtook Portugal last year as the biggest revenue source. Brazilian growth helped offset declines in Portugal, Spain, India and South Africa.
The company forecast positive trends throughout the year in Morocco, Tunisia, Egypt and Turkey, while Portugal and Spain haven’t yet started recovering, Cimpor said in a presentation. Brazil’s construction industry will maintain its “dynamics” for the next few years, Cimpor said. The country accounted for 25 percent of revenue in the second quarter and the first half.
The results appear “positive for the stock, as they imply a significant operational growth, which should lead us to reiterate our buy rating.” Francisco Sequeira, an analyst in Lisbon at Banif SGPS SA, said in a note today.
Net income fell 4.9 percent to 53.1 million euros from 55.9 million euros a year earlier, as taxes almost doubled to 36.9 million euros, the Lisbon-based company said today in a regulatory filing. Pretax profit rose 22 percent.
Cimpor shares rose as much as 4.4 percent, the most since June 30, to 4.678 euros, trading at 4.675 euros as of 11:24 a.m.
A new plant in China and “local market seasonality may enable a better second half,” Cimpor said. Revenue from the country dropped 1.2 percent in the second quarter after a 44 percent drop in the previous three months.
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