Wednesday, November 10, 2010

PORTUGAL: Cimpor profit drops 4 pct on tax, beats forecast

Net profit dips to 170.5 mln euros, f'cast was 167 mln

* Sales rise 6.7 percent, EBITDA beats f'cast


LISBON, Nov 9 (Reuters) - Portuguese cement maker Cimpor posted a 4 percent drop in nine-month net profit due to higher taxes, but it beat the market forecast as sales growth in emerging markets offset sickly Iberian figures.

Portugal's largest cement maker -- the target of a takeover battle earlier this year when Brazilian companies Camargo Correa and Votorantim bought large minority stakes -- said sales in Brazil jumped 45 percent, followed by Turkey, where revenues rose 38 percent.

In Portugal, sales were virtually unchanged, while in neighbouring Spain they fell almost 16 percent. Both Iberian countries have been hard hit by the financial crisis, and government austerity plans are expected to weigh on growth.

Total revenues rose 6.7 percent to 1.68 billion euros, in line with analysts' expectations. Net profit fell to 170.5 million euros, exceeding the avearge forecats of 167 million euros.

Earnings before interest, taxes, depreciation and amortisation rose 4 percent to 475 million euros, slightly exceeding the average forecast of 471 million.

Cimpor did not provide any forward-looking statements. It said in August it viewed the second half of 2010 with moderate optimism, expecting most demand growth in Brazil and China, as well as north Africa.

Cimpor shares were down 0.3 percent at 5.235 euros in early trading, slightly outperforming the broader market in Lisbon .PSI20, which was down 0.5 percent.

No comments: