Results for the first quarter of 2011
- CONSOLIDATED REVENUES: 972.6 million euros (+7.0%)
- RECURRING EBITDA: 146.6 million euros (+2.0%)
- EBIT: 56.8 million euros (-7.1%)
- NET CONSOLIDATED GROUP PROFIT: 142.1 million euros
- NET FINANCIAL DEBT: 1,138.4 million euros (-19.3%)
****
Paris, May 6, 2011 - At a meeting on May 3 chaired by Yves René Nanot, the Board of Directors of Ciments Français (Italcementi Group), examined and approved the unaudited consolidated accounts as of March 31, 2011.
SIGNIFICANT EVENTS
On March 25, 2011 Ciments Français (Italcementi Group) completed the sale announced on February 25, 2011 of Set Group Holding and its subsidiaries to Limak Holding. The sale concluded for a total amount of 290 million euros on a cash and debt-free basis resulted in 109.1 million euros in gains recognized under "profit from discontinued operations".
Pursuant to IFRS 5, the profit and loss from sold operations is presented in the caption "Profit (loss) from discontinued operations" and data for Q1 2010 is restated according to the same method.
RESULTS FOR THE PERIOD
The improved pace in the construction sector activity in the first quarter was supported by much more favorable weather conditions than in Q1 2010 in Europe and North America. Most of the emerging countries still enjoyed dynamic growth, particularly in Asia, while Egypt suffered from a temporary suspension of business activity due to the political crisis.
Group sales volumes increased in all three business segments: +3.2% for cement and clinker at 10.3 million tonnes, + 6.1% for aggregates at 8.6 million tonnes and +14.4% for ready mix concrete at 2.4 million m3.
In cement and clinker, sales volumes increased in France/Belgium (+21.9%), India (+24.5%), Thailand (+9.1%), North America (+6.8%) and Morocco (+5.5%). Volumes dropped in Egypt (-13.0%) and Spain (-7.5%).
In aggregates, sales volumes increased in North America (+26.5%) and France/Belgium (+17.0%); they declined in Morocco (-5.6%) and Thailand (-3.5%).
In ready mix concrete, sales volumes grew in France/Belgium (+31.2%), Morocco (+20.3%) and Thailand (+16.0%) but fell in Spain (-20.4%) and Egypt (-14.0%).
In aggregates, sales volumes increased in North America (+26.5%) and France/Belgium (+17.0%); they declined in Morocco (-5.6%) and Thailand (-3.5%).
In ready mix concrete, sales volumes grew in France/Belgium (+31.2%), Morocco (+20.3%) and Thailand (+16.0%) but fell in Spain (-20.4%) and Egypt (-14.0%).
Q1 consolidated revenues at 972.6 million euros (+7.0% compared with the year-earlier period) increased in India (+53.3%), Thailand (+30.4%), France/Belgium (+20.5%), Morocco (+5.1%) and North America (+3.7%). They decreased in Egypt (-21.6%) and Spain (-12.4%).
Recurring EBITDA amounted to 146.6 million euros, a minor increase (+2.0%) primarily due to higher energy costs despite a favorable effect from the sale of CO2 emission rights (5.8 million euros) and lower taxes on raw materials in Egypt. EBIT was down 7.1% at 56.8 million euros mainly because of an increase in amortization and depreciation related to the commissioning of new plants.
After recognition of 7.5 million euros in net interest expense (as against 21.9 million euros in 2010, which included the impact of the US private placements buyback), net consolidated Group profit totaled 142.1 million euros (including the impact of the sale of Set Group Holding for 109.1 million euros) as against 28.1 million euros in Q1 2010. The share of profit attributable to equity owners of Group parent amounted to 115.5 million euros compared with -1.1 million euros in Q1 2010.
Investments in industrial and financial fixed assets over the first three months of 2011 amounted to 50.8 million euros (primarily in France/Belgium) as against 74.5 million euros in Q1 2010. Their decrease resulted from the completion of the new Greenfield plants in Morocco and India.
As of March 31, 2011 net financial debt was down 273.1 million euros (-19.3%) at 1,138.4 million euros as against 1,411.6 million euros as of December 31, 2010. The decrease resulted essentially from the sale of Set Group Holding, with a net reduction of 281.4 million euros in net financial debt.
Total equity amounted to 4,212.1 million euros as against 4,268.0 million at the end of December 2010. The debt to equity ratio (net financial debt/total equity) was 27.0% as against 33.1% as of 31 December 2010.
Total equity amounted to 4,212.1 million euros as against 4,268.0 million at the end of December 2010. The debt to equity ratio (net financial debt/total equity) was 27.0% as against 33.1% as of 31 December 2010.
OUTLOOK
The Group's performance for 2011 should reflect the positive trends reported in India, Thailand and Morocco, thus offsetting the drop in Egypt considering the country's political situation. In Western countries, the demand for major projects is expected to continue to suffer from public deficits, mitigating the first signs of recovery emerging in the early months of the year, particularly in France.
The sales pricing policy will seek to compensate for the continued increase in energy costs and inflation.
In this context, following the cost containing programs implemented over the last three years, the Group's financial strength appears further enhanced by the actions already carried out or forthcoming towards productivity and monetization of non-strategic assets.
On this basis, the Group was able to face difficult economic conditions. The Group will continue to develop its existing operations while watching for external growth opportunities.
The sales pricing policy will seek to compensate for the continued increase in energy costs and inflation.
In this context, following the cost containing programs implemented over the last three years, the Group's financial strength appears further enhanced by the actions already carried out or forthcoming towards productivity and monetization of non-strategic assets.
On this basis, the Group was able to face difficult economic conditions. The Group will continue to develop its existing operations while watching for external growth opportunities.
BUSINESS TREND FOR Q1 2011
Sales volumes by geographical segment and by business segment
| Sales and internal transfers (1) | Cement & clinker (millions of tonnes) | Aggregates (millions of tonnes) | Ready mix concrete (millions of m3) | ||||||
| 2011 | % change vs. 2010 | 2011 | % change vs. 2010 | 2011 | % change vs. 2010 | ||||
| A | B | A | B | A | B | ||||
| Western Europe | 2.5 | +14.1 | +14.1 | 7.8 | +6.4 | +6.4 | 1.5 | +20.9 | +20.9 |
| North America | 0.6 | +6.8 | +6.8 | 0.2 | +26.5 | +26.5 | 0.1 | +0.7 | +0.7 |
| Emerging Europe, North Africa & Middle East | 4.0 | -8.2 | -8.2 | 0.5 | -5.0 | -5.0 | 0.6 | +3.3 | +3.3 |
| Asia | 2.9 | +14.9 | +14.9 | 0.1 | -3.5 | -3.5 | 0.2 | +12.5 | +12.5 |
| Cement/clinker trading | 0.6 | -53.9 | -53.9 | - | - | - | ns | - | - |
| Eliminations | (0.3) | - | - | - | - | - | - | - | - |
| Total | 10.3 | +3.2 | +3.2 | 8.6 | +6.1 | +6.1 | 2.4 | +14.4 | +14.4 |
Western Europe: France, Belgium, Spain & Greece North America: U.S.A., Canada & Puerto Rico
Emerging Europe, North Africa & Middle East: Egypt, Morocco, Bulgaria, Turkey (Afyon) & Kuwait
Asia: Thailand, India, China & Kazakhstan
(1) Amounts given relate to fully consolidated companies and companies consolidated using the proportionate consolidation method up to Group share.
A: at historical consolidation scope B: at comparable consolidation scope ns: not significant
Emerging Europe, North Africa & Middle East: Egypt, Morocco, Bulgaria, Turkey (Afyon) & Kuwait
Asia: Thailand, India, China & Kazakhstan
(1) Amounts given relate to fully consolidated companies and companies consolidated using the proportionate consolidation method up to Group share.
A: at historical consolidation scope B: at comparable consolidation scope ns: not significant
ECONOMIC TREND FOR Q1 2011
Breakdown by business segment
| Revenues (M€) | Q1 2011 | Q1 2010 | % changes vs. 2010 Historical basis | % changes vs. 2010 Comparable basis & exchange rates |
| Cement & clinker | 656.4 | 637.9 | 2.9% | 3.2% |
| Aggregates / RMC | 259.4 | 227.0 | 14.3% | 14.2% |
| Others | 56.9 | 43.8 | 29.8% | 22.0% |
| Total | 972.6 | 908.8 | 7.0% | 6.8% |
Breakdown by geographical segment
Western Europe
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | |
| France/ Belgium | 392.8 | 325.9 | 53.8 | 42.5 | 53.3 | 42.6 | 29.4 | 19.3 |
| Spain | 38.8 | 44.3 | 3.0 | 8.8 | 3.0 | 9.0 | (1.8) | 5.3 |
| Other country* | 12.2 | 17.3 | 0.3 | 3.9 | 0.3 | 3.9 | (0.9) | 2.8 |
| Eliminations intra-zone | (4.8) | (4.4) | - | - | - | - | - | - |
| Total | 438.9 | 383.2 | 57.0 | 55.2 | 56.6 | 55.5 | 26.7 | 27.4 |
* Greece
North America
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | |
| Total | 63.9 | 61.6 | (22.0) | (17.2) | (22.3) | (17.2) | (38.9) | (33.8) |
Emerging Europe, North Africa & Middle East
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | |
| Egypt | 167.6 | 213.7 | 50.9 | 61.8 | 50.9 | 61.8 | 34.3 | 44.1 |
| Morocco | 84.9 | 80.8 | 36.6 | 31.0 | 36.6 | 31.0 | 28.2 | 26.4 |
| Other countries* | 25.1 | 25.1 | 6.6 | 2.9 | 6.7 | 2.9 | 3.1 | (0.8) |
| Total | 277.6 | 319.5 | 94.1 | 95.7 | 94.2 | 95.7 | 65.6 | 69.8 |
* Bulgaria, Turkey (Afyon), Kuwait
Asia
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | |
| Thailand | 54.2 | 41.6 | 10.1 | 6.0 | 10.1 | 5.7 | 4.7 | 0.8 |
| India | 60.5 | 39.5 | 15.5 | 8.0 | 15.5 | 8.0 | 10.7 | 4.4 |
| Other countries* | 15.6 | 14.0 | (0.8) | 0.4 | (0.8) | 0.4 | (3.2) | (1.9) |
| Total | 130.3 | 95.0 | 24.8 | 14.4 | 24.8 | 14.1 | 12.2 | 3.3 |
* Chine & Kazakhstan
Cement/clinker trading
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | |
| Total | 41.3 | 64.7 | 2.8 | 3.0 | 2.8 | 3.0 | 1.9 | 2.4 |
Group total
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | Q1 2011 | Q1 2010 | |
| Others & eliminations* | 20.6 | (15.2) | (10.1) | (7.3) | (10.1) | (7.3) | (10.7) | (7.9) |
| Group Total | 972.6 | 908.8 | 146.6 | 143.8 | 146.1 | 143.9 | 56.8 | 61.2 |
* Others: fuel trading, headquarters & holding companies
***
The results for the first quarter of 2011 of Italcementi and Ciments Français will be illustrated during aConference Call on Friday 6 May 2011 at 3:30 pm. The presentation will be broadcast in audio streaming on the italcementigroup.com and cimfra.com websites.
No comments:
Post a Comment