Financial challenges impact Ciments Francais
First publishedon www.AggBusiness.com
France-based Italcementi subsidiary Ciments Francais has announced a drop in sales and profit in the first half of 2011, compared to the same period last year, due to financial challenges. The company recorded a turnover of €2.04billion, down 1.8% on 2010, and a recurring EBITDA of €386million, a drop of 12.8% on last year.
In a statement, the company said, “During the first six-month period of 2011, the group’s business activity remained stable compared with the year-earlier period mostly because of the sound results posted in the first quarter supported by particularly favourable weather conditions.
“Most of the industrialised countries faced a still difficult economic situation, whereas major Asian countries and Morocco reported significant business growth. In Egypt, operations slowed down considerably although results at the end of June remained strongly positive. Cement demand on the Egyptian market decreased due to the political crisis. This together with the commissioning of new production capacities created pressure on prices.”
Ciments Francais also said that increased energy costs and a negative exchange effect also impacted on the business.