2011 Annual Report - Italcementi Group

In cement and clinker, performance in the mature countries slowed, despite the progress
reported in France – Belgium and North America. In Emerging Europe, North Africa and
Middle East, the growth in Morocco and Bulgaria did not counterbalance the decline in
Egypt. In Asia, the rise in sales volumes in India was not sufficient to cover the contraction
on the other markets, which were also affected by the floods that hit Thailand. Trading
operations also reported a downturn, primarily in intragroup trading.
In aggregates, the growth achieved with respect to the fourth quarter of 2010 arose mainly
from the strong performance in France – Belgium, Italy and North America, set against
sharp falls in Greece and Spain.
The small improvement in ready mixed concrete, on a like-for-like basis, arose in part
from the trends already described for aggregates, with increases in France – Belgium, Italy
and North America, and falls in Greece and Spain. The sector also reported strong
progress in Morocco and Kuwait, and a significant contraction in Egypt.
Fourth-quarter results
Fourth-quarter revenue amounted to 1,120.3 million euro (+2.9%), with growth reported in
Central Western Europe as a result of the upward trend in prices and the perimeter effect in
Italy, and in North America, thanks to positive sales volumes. Conversely, a decline was
reported on the emerging markets as a whole, penalized chiefly by Egypt and Thailand,
despite the progress in Morocco and India. On a like-for-like basis and at constant
exchange rates, revenue would have been 1.7% down from the fourth quarter of 2010.
Recurring EBITDA, at 133.4 million euro, was down 24.6% from the year-earlier quarter.
EBIT was negative at 107.3 million euro, compared with positive EBIT of 54.1 million euro
in the year-earlier fourth quarter. The downturn arose mainly from significant impairment
losses (134.4 million euro) on property, plant and equipment, intangible assets and
goodwill, compared with 7.4 million euro in the year-earlier quarter.
As a result of these impairment losses, a loss of 121.6 million euro was posted for the
fourth quarter (profit of 63.6 million euro in the fourth quarter of 2010).
Full-year sales volumes and internal transfers
As noted in the remarks on the fourth quarter, the figures and changes in full-year volumes
do not include Set Group operations, but reflect the re-inclusion of the Calcestruzzi group in
the scope of consolidation.
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