(CMA)
Delayed Euronext Paris – 05/04 11:35:00 am47.26EUR-1.55%
05/04/2012 | 12:55pm
Results for the first quarter of 2012
CONSOLIDATED REVENUES: 892.3 million euros (968.9 million euros in the first quarter of 2011)
- RECURRING EBITDA: 127.6 million euros (147.0 million euros in the first quarter of 2011)
- EBIT: 40.6 million euros (57.6 million euros in the first quarter of 2011)
- NET CONSOLIDATED GROUP PROFIT: 0.8 million euros (as against 142.1 million euros including 108.5 million euros corresponding to the activities sold in Turkey in the first quarter of 2011)
- NET FINANCIAL DEBT: 1,057.6 million euros (1,021.4 million euros as of December 31, 2011)
****
Paris, May 4, 2012 – At a meeting on May 2 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, 2012.
RESULTS FOR THE PERIOD
Beyond the effects of the recession in some industrialized countries, the volumes sold during the first quarter of 2012 in the three businesses were penalized by particularly harsh weather conditions in Western Europe, as opposed to milder weather conditions in the first quarter of 2011.
Business activity in the emerging countries was sustained by the Indian and Moroccan markets and by the recovery in Bulgaria, where the Group is embarked in projects to increase production capacity. The first quarter of 2012 confirmed the good results in North America since the end of 2011.
In Egypt, following a long period of uncertainty, the market showed signs of recovery and prices, although still below the level of the first quarter of 2011, strengthened the trend towards recovery that emerged in the last months of 2011.
Group revenues for the first quarter declined compared to the first quarter of 2011 due to a negative volume effect, particularly pronounced in Europe in January and February with some signs of improvement in March, mitigated in part by stable prices in most countries but Egypt.
The positive impact from the fixed-costs reduction programs and productivity growth following recent investments in Group production facilities partially offset the increase in energy costs and the effects related to the drop in volumes.
Cement and clinker sales volumes (9.8 million tonnes, -3.9%) particularly decreased in France/Belgium (-11.9%) and Egypt (-4.9%) – with new players entering the market – but improved significantly in Bulgaria (+64.5%), North America (+19.5%), Morocco (+6.6%) and trading (+45.9%).
Aggregates sales volumes (7.2 million tonnes, -16.3%) globally declined except for North America (+29.2%).
Ready mix concrete sales volumes (2.2 million cubic meters, -10.6%) increased in North America (+41.5%), Morocco (+6.3%) and Kuwait (+9.4%) but dropped in all the other countries.
Consolidated revenues for the quarter amounted to 892.3 million euros (-7.9% compared with the year-earlier period). They increased significantly in Bulgaria (+40.8%), North America (+25.0%), as well as Morocco (+8.3%) and India (+5.7%). They fell in Greece (-53.2%), Spain (-32.1%), Egypt (-18.8%) and France/Belgium (-10.1%).
Recurring EBITDA was down 13.2% at 127.6 million euros, primarily because of the volume effect and rising energy costs partially offset by the cost reduction programs and their resulting impact. EBIT dropped by 29.6% at 40.6 million euros. North America distinctly improved its results as did Morocco which consolidated its growth; the most significant decreases related to Egypt and France/Belgium.
After recognition of 17.4 million euros in net interest expense as against 7.7 million euros in the first quarter of 2011, which had benefited from the sale of some of the Goltas shares (Turkey) in portfolio for an amount of 14 million euros, net consolidated Group profit totaled 0.8 million euros as against 142.1 million euros in the first quarter of 2011, which also included 108.5 million euros corresponding to the divested Turkish industrial sites. The share of profit/loss attributable to owners of the parent was -16.9 million euros compared to +115.5 million euros in the first quarter of 2011. The share of profit attributable to non-controlling interests (minority interests) amounted to 17.7 million euros (26.5 million euros in the first quarter of 2011).
Investments in industrial and financial fixed assets over the first three months of 2012 amounted to 48.3 million euros (mainly in France/Belgium) consistent with the 50.8 million euros of the same period of 2011.
As of March 31, 2012 net financial debt was slightly up (+36.1 million euros) at 1,057.6 million euros as against 1,021.4 million euros as of December 31, 2011, mainly because of the seasonal change in working capital requirement. Total equity amounted to 4,199.3 million euros as against 4,257.7 million at the end of December 2011.
The debt to equity ratio (net financial debt/total equity) was 25.2% compared to 24.0% as of 31 December 2011.
OUTLOOK
The general economic conditions in the emerging countries should enable the construction sector to improve satisfactorily during the coming months and a slight recovery should be confirmed in the United States. However, some European countries will remain in recession.
Energy costs seem to stabilize worldwide, albeit with an upward trend in certain emerging countries.
Against such a backdrop, productivity improvement programs, fixed cost reduction and tight management of cash flows should allow the Group to confirm – despite the drop in the first quarter – operating results in line with those of 2011 and a slightly higher net financial debt following major strategic investments in Bulgaria and India.
BUSINESS TREND FOR THE FIRST QUARTER OF 2012
The information disclosed below does not include Afyon’s contribution (Turkey), whose disposal is currently being finalized.
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) |
||||||
Q1
|
% change vs. Q1 2011 |
Q1
|
% change vs. Q1 2011 |
Q1
|
% change vs. Q1 2011 |
||||
| A | B | A | B | A | B | ||||
Western Europe |
2.4 |
-14.0 |
-14.0 |
6.7 |
-17.7 |
-17.7 |
1.2 |
-17.8 |
-18.9 |
North America |
0.8 |
+19.5 |
+19.5 |
0.3 |
+29.2 |
+29.2 |
0.2 |
+41.5 |
+41.5 |
Emerging Europe, North Africa & Middle East |
3.9 |
-1.0 |
-1.0 |
0.5 |
-2.0 |
-2.0 |
0.6 |
+1.8 |
+1.8 |
Asia |
2.8 |
-4.6 |
-4.6 |
ns |
-43.3 |
-43.3 |
0.2 |
-14.3 |
-14.3 |
Cement/clinker trading |
0.8 |
+45.9 |
+45.9 |
– |
– |
– |
ns |
-31.8 |
-31.8 |
Eliminations |
(0.8) |
– |
– |
– |
– |
– |
– |
– |
– |
Total |
9.8 |
-3.9 |
-3.9 |
7.2 |
-16.3 |
-16.3 |
2.2 |
-9.9 |
-10.6 |
Western Europe: France, Belgium, Spain & Greece North America: U.S.A., Canada & Puerto Rico
Emerging Europe, North Africa & Middle East: Egypt, Morocco, Bulgaria & 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 THE FIRST QUARTER OF 2012
Breakdown by business segment
| Revenues (M€) |
Q1 2012 | Q1 2011 | % changes vs. Q1 2011 Historical basis |
% changes vs. Q1 2011 Comparable basis & exchange rates |
| Cement & clinker | 612.6 | 641.9 | -4.6% | -5.2% |
| Aggregates / RMC | 240.7 | 259.4 | -7.2% | -7.9% |
| Others | 39.0 | 67.5 | -42.3% | -39.9% |
| Total | 892.3 | 968.9 | -7.9% | -8.2% |
Breakdown by geographical segment
Western Europe
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| France/ Belgium | 353.6 | 392.8 | 47.2 | 53.8 | 48.6 | 53.3 | 25.3 | 29.4 |
| Spain | 30.5 | 38.8 | 1.4 | 3.0 | (0.1) | 3.0 | (4.7) | (1.8) |
| Other country* | 5.8 | 12.2 | (0.6) | 0.3 | (0.6) | 0.3 | (1.7) | (0.9) |
| Eliminations intra-zone | (4.6) | (4.8) | – | – | – | – | – | – |
| Total | 385.3 | 438.9 | 48.0 | 57.0 | 47.9 | 56.6 | 18.9 | 26.7 |
* Greece
North America
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| Total | 79.8 | 63.9 | (12.6) | (22.0) | (12.5) | (22.3) | (28.4) | (38.9) |
Emerging Europe, North Africa & Middle East
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| Egypt | 146.6 | 167.6 | 35.4 | 50.9 | 35.6 | 50.9 | 19.2 | 34.3 |
| Morocco | 91.4 | 84.9 | 41.0 | 36.6 | 41.0 | 36.6 | 32.1 | 28.2 |
| Other countries* | 23.1 | 21.4 | 5.5 | 7.0 | 5.4 | 7.1 | 2.8 | 3.9 |
| Total | 261.2 | 273.9 | 81.8 | 94.5 | 82.0 | 94.5 | 54.0 | 66.4 |
* Bulgaria & Kuwait
Asia
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| Thailand | 53.3 | 54.2 | 6.8 | 10.1 | 6.9 | 10.1 | 1.0 | 4.7 |
| India | 63.9 | 60.5 | 15.3 | 15.5 | 15.2 | 15.5 | 10.5 | 10.7 |
| Other countries* | 12.2 | 15.6 | (3.3) | (0.8) | (3.3) | (0.8) | (5.7) | (3.2) |
| Total | 129.4 | 130.3 | 18.9 | 24.8 | 18.8 | 24.8 | 5.8 | 12.2 |
* Chine & Kazakhstan
Cement/clinker trading
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| Total | 51.8 | 41.3 | 1.8 | 2.8 | 1.8 | 2.8 | 1.1 | 1.9 |
Group total
| (M€) | Revenues | Recurring EBITDA | EBITDA | EBIT | ||||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| Others & eliminations* | (15.3) | 20.7 | (10.3) | (10.1) | (10.3) | (10.1) | (10.8) | (10.7) |
| Group Total | 892.3 | 968.9 | 127.6 | 147.0 | 127.7 | 146.4 | 40.6 | 57.6 |
* Others: fuel trading, headquarters & holding companies
Revenues and recurring EBITDA in “Other countries”
| (in millions of euros) | Revenues | Recurring EBITDA | ||
| Q1 2012 | Q1 2011 | Q1 2012 | Q1 2011 | |
| Greece | 5.8 | 12.2 | (0.6) | 0.3 |
| Western Europe | 5.8 | 12.2 | (0.6) | 0.3 |
| Bulgaria | 7.6 | 5.3 | 3.9 | 5.1 |
| Kuwait | 15.6 | 16.1 | 1.5 | 1.9 |
| Emerging Europe, North Africa & Middle East | 23.1 | 21.4 | (5.5) | (7.0) |
| China | 8.4 | 10.4 | (2.0) | (0.7) |
| Kazakhstan | 3.8 | 5.2 | (1.2) | (0.1) |
| Asia | 12.2 | 15.6 | (3.3) | (0.8) |
***
The results for the first quarter of 2012 of Italcementi and Ciments Français will be illustrated during a Conference Call on Monday 7 May 2012 at 3:30 pm. The presentation will be broadcast in audio streaming on the italcementigroup.com and cimfra.com websites.
***
ON THE INTERNET: www.cimfra.com:
http://www.cimfra.com/ & www.italcementigroup.com:
http://www.italcementigroup.com/
| Ciments Français | Ciments Français |
| Media Relations | Investor Relations |
| Tel: + 33 (0)1 42 91 76 87 | Tel: +33 (0)1 42 91 76 76 |
DISCLAIMER
This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company’s results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company’s annual report available on its Internet website (www.cimfra.com:
http://www.cimfra.com/). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.
Appendices
Ciments Français Group
Income statement
| (in millions of euros) | 31 March 2012 | 31 March 2011 | 2012/2011 % change |
||
| Amounts | % | Amounts | % | ||
| Revenues | 892.3 | 100% | 968.9 | 100% | -7.9% |
| Other revenues | 3.6 | 2.8 | |||
| Change in inventories | 4.8 | (29.5) | |||
| Internal work capitalized | 1.5 | 1.1 | |||
| Raw materials and utilities | (376.3) | (391.3) | |||
| Service expense | (232.4) | (237.6) | |||
| Personnel expense | (155.5) | (154.1) | |||
| Other operating income (expense) | (10.4) | (13.2) | |||
| Recurring EBITDA | 127.6 | 14.3% | 147.0 | 15.2% | -13.2% |
| Net capital gains (losses) on sale of fixed assets | 1.7 | (0.1) | |||
| Other non-recurring income (expense) | (1.6) | (0.4) | |||
| EBITDA | 127.7 | 14.3% | 146.4 | 15.1% | -12.8% |
| Amortization and depreciation | (86.9) | (88.5) | |||
| Impairment | (0.3) | (0.4) | |||
| EBIT | 40.6 | 4.5% | 57.6 | 5.9% | -29.6% |
| Finance income | 4.8 | 22.2 | |||
| Finance costs | (21.7) | (25.1) | |||
| Gains (losses) on derivatives and exchange rates | (0.5) | (4.7) | |||
| Finance income (costs), net | (17.4) | (7.7) | |||
| Share of profit of associates | (0.7) | 1.5 | |||
| Profit before tax | 22.5 | 2.5% | 51.4 | 5.3% | -56.3% |
| Tax expense | (20.9) | (17.9) | |||
| Net profit from continuing operations | 1.6 | 0.2% | 33.6 | 3.5% | -95.3% |
| Net profit (loss) from discontinued operations | (0.8) | 108.5 | |||
| Net consolidated Group profit | 0.8 | 0.1% | 142.1 | 14.7% | |
| Continuing operations | |||||
| Net profit (loss) attributable to owners of the parent | (16.5) | -1.9% | 6.8 | 0.7% | |
| Net profit (loss) attributable to non-controlling interests | 18.1 | 2.0% | 26.7 | 2.8% | |
| Discontinued operations | |||||
| Net profit (loss) attributable to owners of the parent | (0.4) | 108.7 | |||
| Net profit (loss) attributable to non-controlling interests | (0.4) | (0.2) | |||
| Financial position | 31 March 2012 | 31 December 2011 | 31 March 2011 | ||
| Net financial debt | 1,057.6 | 1,021.4 | 1,138.4 | ||
| Total equity | 4,199.3 | 4,257.7 | 4,212.1 | ||
Ciments Français Group
Statement of change in net financial debt
| (in millions of euros) | 31 March 2012 | 31 March 2011 |
| Cash flow from operating activities | 76.5 | 106.4 |
| Change in working capital requirement | (61.2) | (33.5) |
| Total cash flow from operating activities | 15.3 | 72.9 |
| Investments in PPE and intangible assets | (48.3) | (50.8) |
| Change in PPE and intangible assets payables | (6.5) | (35.8) |
| Cash flow from operating activities net of capital expenditure | (39.5) | (13.7) |
| Equity investments | – | – |
| Disinvestments | 3.3 | 23.2 |
| Dividends paid | (10.1) | (57.0) |
| Change in foreign exchange on NFP and others | 11.3 | 41.5 |
| Cash flow related to discontinued operations (Turkey) | (1.1) | 279.2 |
| Change in net financial debt | (36.1) | 273.1 |
Press release:
http://hugin.info/143406/R/1609068/510832.pdf
