Buzzi Unicem reported consolidated net sales of $2,829m (€2,669m) in its preliminary results for 2016, up 0.3% (+1.7% like for like) on 2015.
Cement volumes were 25.6 million tons (+0.3%); ready-mix concrete 11.9 million cubic meters (as in 2015).
Sales declines in Russia, the US and Italy were offset by more positive results from Central and Eastern Europe.
“In Poland and the Czech Republic the trend of the building sector was lively,” the company, while “the recovering of construction activity in Germany was better than expected.” Ukraine also showed “tangible signs of recovery from recession and of stabilisation of the economy,” with construction investments returning to modest growth.
Recovery in Italy remained weak, however, despite an upturn in the residential market, as spending in the public sector was low. Investment was also down in Russia, while the US returned to more normal levels of growth after robust growth between 2014 and 2015.
Cement and clinker sales totalled 25.6 million t – level with the previous year. Ready-mixed concrete output was also inline with the previous year at 11.9 million m3.
Positive cash flow from operations helped the company reduce its net debt by €88 million to €942 million. It also covered capex spending of €75 million for the renovation of the Maryneal cement plant in Texas.
Thje company said "global growth has gradually consolidated since the summer months, but did not result in a solid recovery in world trade which, after the slight strengthening in the second quarter, continued to grow at a modest pace, driven by the trade of emerging economies, but with abrupt slowdown in the advanced countries that were affected by the weakening of investments, particularly the United States and Japan."
"The development of business activity, especially in the third quarter, exceeded expectations in the advanced economies: in the United States GDP accelerated to 3.5% on an annual basis, thanks to the contribution of net exports and to the increasingly robust expansion in domestic consumption, while growth dynamics in the fourth quarter are foreseen below expectations.
"In Europe, thanks to the drive coming from domestic demand, GDP growth continued with gradual consolidation, although at a moderate pace, with the contribution of household spending, public administration consumption and changes in inventory.
In the United States cement sales for the full year showed a slight decrease (-1.7%), with more pronounced weakness of demand in Texas, particularly in the Houston area, whose economy is strongly influenced by the trend in oil prices.
"The deliveries of special oil well products, albeit still declining over the 12 months, posted some signs of recovery at the beginning of winter. Ready-mix concrete output, mainly present in Texas, suffered from both the unfavorable weather conditions and, indirectly, the oil and gas crisis, closing down 9.8% on the previous year.
"Selling prices trend dynamics in local currency were favorable, thus causing in the cement sector a greater variance than in the ready-mix concrete one. Overall net sales increased from €1,109 to €1,118 million (+0.8%). The development of the dollar marginally favored the turnover; at constant exchange rates, net sales would have increased by 0.6%."
