2011 Annual Report - Italcementi Group

2011 Annual Report
Presentation 4
General information 15
Annual Report Consolidated Annual Report Directors’ report 150
Extraordinary session Italcementi S.p.A. Annual Report Separate financial statements 239
Results and significant events for the year
Results
Italcementi S.p.A. ended 2011 with a 7.0 million euro profit (against a 34.4 million euro loss
in 2010) primarily as a result of a positive sales price effect, income relating to CO 2
emission rights, an increase in finance income, while being penalized by higher impairment
losses on financial assets.
Condensed income statement
2011 2010 % change
(in millions of euro)
on 2010
Revenue 613.8 614.1 -
Recurring EBITDA (0.5) (54.5) n.s.
% of revenue (0.1) (8.9)
Other non-recurring income/expense 8.2 3.1 >100.0
EBITDA 7.7 (51.4) n.s.
% of revenue 1.3 (8.4)
Amortization and depreciation (81.6) (80.7) 1.2
Impairment losses on non-current assets (0.7) 1.7
EBIT (74.6) (130.3) 42.7
% of revenue (12.2) (21.2)
Finance income 109.8 78.8 39.4
Impairment losses (52.3) (38.2) 36.8
Profit (loss) before tax (17.1) (89.7) 81.0
% of revenue (2.8) (14.6)
Income tax expense 24.1 55.4 (56.5)
Profit (loss) for the period 7.0 (34.4) n.s.
% of revenue 1.1 (5.6)
Cash flow from operating activities 36.1 54.8 (34.1)
Capital expenditure 131.6 142.4 (7.6)
n.s.: not significant
In 2011, the Italian economy did not capitalize on the hints of recovery seen the year
before. After a positive – albeit considerably slower – first half, the second part of the year
saw the return of recessionary conditions. At the core of the new downward cycle was the
progressive decline in foreign demand and, above all, a contraction in domestic demand.
Specifically, consumer demand was affected by a further employment deterioration and
measures to further contain public spending, which immediately affected confidence, and
finally by the considerable reduction in household spending power as a result of the losses
witnessed in all types of business. In the second half of the year, production and
investments were significantly affected by the tightening of lending conditions resulting from
the sovereign debt crisis in some euro zone countries.
The construction recession was severe, if partially alleviated in the first few months of the
year by favorable weather conditions. The decline in business indices slowed down only in
the residential construction segment – largely due to contributions towards restructuring,
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