Italy: Italcementi has reported that its revenue fell by 6.2% to Euro2.16bn for the first half of 2013 from Euro2.30bn in the same period in 2012. The Italian-based cement producer commented that, despite the decrease in sales volumes, its revenue reduction was smaller (3.6%) in the second quarter of 2013.
"Our programme to contain fixed costs together with close control of variable costs enabled us to lower our breakeven point, slightly ahead of our targets, despite continuing difficulties in market conditions, especially in Italy," said Italcementi group chief operating officer Giovanni Ferrario.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 10.6% to Euro299m from Euro334m. The group posted a loss for the period of Euro43.3m compared with a profit of Euro1.3m in the first half of 2012, when gains of Euro8.6m were reported on the sale of its subsidiaries Afyon and Fuping. Net debt for the period was broadly unchanged for the period at Euro2bn.
Overall cement sales fell by 7.1% to 21.8Mt. By region, cement sales fell by 12.4% to 7.2Mt in Central Western Europe and by 11.7% to 6.9Mt in Emerging Europe, North Africa and Middle East. Cement sales rose by 1% to 2Mt in North America and by 5.3% in Asia. In the cement business, for the second quarter the group reported a significant reduction in the decline in Europe and Morocco, positive performance in North America and stability in sales in Asia. Sales volumes in Egypt were affected by difficulties in fuel procurement. A particular poor performance in Italy was singled out.
In its outlook, Italcementi speculated that its results in the second half of 2013 should be in line with the second half of 2012 due to market improvements in selected countries and the impact of cost cutting exercises, particularly in Italy and Spain. However, it warned that full-year profitability would be hit by the poor first quarter of 2013.
