Italcementi Group revenue 4,235.4 million euro (-5.4%, -2.2% like-forlike and at constant exchange rates)

Transcription

1 BOARD OF DIRECTORS EXAMINES SALES FIGURES FOR YEAR TO DECEMBER 31, Italcementi Group revenue 4,235.4 million euro (-5.4%, -2.2% like-forlike and at constant exchange rates) Sales volumes: 43.1 million metric tons of cement and clinker, 32.5 million metric tons of aggregates and 12.3 million m 3 of ready mixed concrete. Net debt shows further reduction to 1,940 million euro (an improvement of approximately 60 million euro from the end of ). Fourth-quarter estimates confirm an additional improvement in profitability. Bergamo, February 6, 2014 The Italcementi Board of Directors has examined figures on the Group sales performance for the year to December 31,. In the countries where the Group operates, was another year affected by the repercussions of the economic crisis, which had a particularly notable impact on demand for construction materials in Continental Europe; meanwhile, the Asian markets continued to make a positive contribution, while a recovery emerged in North America, although trends were not uniform in all areas. The situation remained difficult in Egypt, where strong potential domestic demand was contrasted by limited energy availability, which reduced cement production capacity. Overall, these effects generated a reduction in sales volumes (cement and clinker -6%, aggregates -4.2%, ready mixed concrete -4.7%). With the trend in local currency sales prices showing a general improvement compared with with the exception of India in the Italcementi Group recorded consolidated revenue of 4,235.4 million euro, a downturn of 5.4% from. Net of the significant impact of the exchange-rate effect, the revenue reduction was 2.2%. For the fourth quarter, despite a 6% reduction in revenue to 1,017.9 million euro, arising mainly from a negative exchange-rate effect and a smaller contribution from exports, the estimates of a further improvement in profit margins were confirmed. fourth-quarter recurring EBITDA will be up on the year-earlier period, thanks to a positive price dynamic and the significant impact of the management and industrial efficiency plans introduced during the year. These measures, together with the action taken to optimize cash flows, also generated an additional reduction in net debt, which stood at approximately 1,940 million euro at the end of the year, an improvement of approximately 60 million euro from the end of.

2 ***** In, consolidated cement and clinker sales volumes totaled 43.1 million metric tons (-6.0%), a reduction chiefly due to the continuing stagnation in demand in southern Europe (the largest decrease was on the Italian market, where demand dropped by 19.9%) and to the situation in Egypt (-17.6% considering that energy procurement difficulties also halved the country s exports). The Asian markets continued to make a positive contribution, notably Thailand (+5.5%) and India (+1.6%), while the sales upturn in North America was confirmed (+1.5%). Sales volumes of aggregates amounted to 32.5 million metric tons (-4.2%), reflecting a fall on all markets except Morocco and France-Belgium, while sales volumes of ready mixed concrete were 12.3 million cubic meters (-4.7%), a decrease largely caused by market weakness in Central Western Europe, mitigated by healthy performance in North Africa and Asia. Sales volumes and internal transfers vs. Aggregates vs. Ready mixed concrete (millions of m 3 ) vs. A B A B A B Central Western Europe 14.5 (9.3) (9.3) 29.1 (4.3) (4.3) 8.0 (11.0) (11.0) North America (10.0) (10.0) 0.7 (9.7) (9.7) Emerging Europe, North Africa and Middle East 13.2 (11.7) (11.7) Asia n.s. n.s trading 3.0 (17.0) (17.0) n.s. n.s. n.s. Eliminations (2.3) n.s. n.s Total 43.1 (6.0) (6.0) 32.5 (4.2) (4.2) 12.3 (4.7) (4.7) Central Western Europe: Italy, France-Belgium, Spain, Greece North America: U.S.A., Canada, Puerto Rico Emerging Europe, North Africa and Middle East: Egypt, Morocco, Bulgaria, Kuwait, Saudi Arabia. Asia: Thailand, India, Kazakhstan Amounts refer to consolidated and proportionately consolidated companies; A: Historic B: On a like-for-like basis; n.s.: not significant Consolidated revenue was 4,235.4 million euro, down 5.4% from. The decline was caused by the exchange-rate effect for 3.2% (specifically, the performance of the Egyptian pound, the rupee and the US dollar). Net of the exchange-rate effect, the positive sales prices trend generated growth in the emerging countries (+9.2% in Asia and +2.5% in Emerging Europe, North Africa and Middle East) and substantial stability in North America Page 2

3 (+0.7%), whereas Central Western Europe reported a revenue decline of 7.5% (largely arising from performance on the Italian market). Revenue by geographical area Central Western Europe 2, ,416.6 (7.5) (7.5) North America (2.5) 0.7 Emerging Europe, North Africa and Middle East 944 1,008.7 (6.4) 2.5 Asia trading (17.3) (13.0) Others (9.9) (8.8) Eliminations (388.7) (462.2) Total 4, ,478.8 (5.4) (2.2) The table below sets out consolidated revenue by business segment: Revenue by business segment 2, ,903.5 (6.4) (2.1) RMC/Aggregates 1, ,280.3 (2.5) (1.4) Other (8.5) (6.9) Total 4, ,478.8 (5.4) (2.2) sales in the fourth quarter were down 7.2% compared with the yearearlier period, largely as a result of the downturn on the European markets with the exception of France/Belgium -, the situation in Egypt (where exports were particularly badly affected) and the contraction in North America and in Bulgaria. Page 3

4 Sales volumes and internal transfers Central Western Europe Aggregates Ready mixed concrete (millions of m 3 ) vs. vs. vs. A B A B A B 3.5 (8.3) (8.3) 7.1 (4.3) (4.3) 1.9 (11.7) (11.7) North America 1.0 (4.9) (4.9) 0.3 (21.5) (21.5) 0.2 (6.2) (6.2) Emerging Europe, North Africa and Middle East 3.4 (10.7) (10.7) 0.3 (31.4) (31.4) Asia n.s. n.s. n.s trading 0.6 (42.4) (42.4) n.s. n.s. n.s. Eliminations (0.5) n.s. n.s Total 10.5 (7.2) (7.2) 7.8 (6.9) (6.9) 3.0 (6.5) (6.5) Amounts refer to consolidated and proportionately consolidated companies; A: Historic B: On a like-for-like basis; n.s.: not significant Fourth-quarter consolidated revenue amounted to 1,017.9 million euro (-6.0% from the fourth quarter of ). Revenue by geographical area Central Western Europe (5.7) (5.7) North America (9.0) (4.4) Emerging Europe, North Africa and Middle East (5.7) 4.3 Asia (5.5) 7.4 trading (31.5) (27.5) Others (8.8) (7.8) Eliminations (89.1) (111.7) Total 1, ,083.1 (6.0) (1.7) The Board of Directors will examine the figures in the financial statements at a meeting scheduled for March 6, Page 4

5 The manager in charge of preparing the company s financial reports, Carlo Bianchini, declares, pursuant to paragraph 2 article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting entries. Disclaimer This press release, and the section headed Outlook in particular, may contain forward-looking statements. These statements are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: continued volatility and further deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in laws and regulations and the institutional environment (in each case in Italy or abroad), and many other factors, most of which are beyond the Group s control. ITALCEMENTI GROUP ON THE INTERNET: Italcementi Italcementi Media Relations Investor Relations Tel. (39) Tel. (39) /866 Page 5