Exchange rates hit Italcementi third quarter

By Helen Wright14 November 2013

Third quarter revenues and profit at Italian cement producer Italcementi were hit by exchange rate effects, but it reported improving market conditions.

Revenues for the three months to 30 September stood at €1.06 billion, down from €1.09 billion for the same period in 2012. However, stripping out the effects of exchange rates, Italcementi said revenues increased 1.2% year-on-year.

Recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) were stable year-on-year at €175 million for the third quarter.

Earnings before interest and taxes (EBIT) stood at €30.7 million, compared to €61.9 million for the third quarter of 2012. Total cement and clinker sales volumes dropped 2.4% year-on-year.

In terms of markets, Italcementi reported an easing in the reduction in volumes, assisted by a continuing healthy performance in Asia, a confirmed upturn in the North American market and slower declines in the EU.

Group COO Giovanni Ferrario said the company had seen improvements despite the stagnation in demand from European markets.

"With the exception of March, which was severely affected by the impact of bad weather on construction operations, the Italcementi group has reported a positive trend in results for its industrial operations over the last four quarters,” he said.

For the full-year, Italcementi said it expected recurring EBITDA to be in line with its 2012 results, stripping out exchange rates and CO2 charges.

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