Results for the first quarter of 2014

Data related to 2013 has been restated pursuant to IFRS 10, 11 and 12 applicable retrospectively as of 1 January 2014 (see page 5)

  • CONSOLIDATED REVENUES: 807.2 million euros
    (819.1 million euros in the first quarter of 2013)
  • RECURRING EBITDA: 92.7 million euros
    (112.3 million euros in the first quarter of 2013)
  • EBIT: 16.2 million euros
    (31.2 million euros in the first quarter of 2013)
  • NET CONSOLIDATED PROFIT : -13.5 million euros
    (0.5 million euros in the first quarter of 2013)
  • NET FINANCIAL DEBT: 845.5 million euros
    (750.4 million euros as of 31 December 2013 and 910.3 million euros as of 31 March 2013)

****

Paris, 8 May 2014 - At a meeting on 6 May chaired by Jean-Paul Méric, the Board of Directors of Ciments Français (Italcementi Group), examined and approved the unaudited consolidated accounts as of 31 March 2014.

RESULTS FOR THE PERIOD

Cement sales showed a slight recovery in the first quarter of 2014 in all the areas of activity, except for North America which was penalized by particularly adverse weather conditions. The improvement in the economic situation echoed more favorably in the countries of Western Europe than in the emerging countries. The demand remained sustained in the countries of Asia and, to a lesser extent, in North Africa.

In such an environment and given a global price level in line with the previous quarter, with a significant increase in Thailand and in Egypt - where prices followed the costs of fuels -, revenues for the first quarter of 2014 amounted to 807.2 million euros, however down 1.5% on the year-earlier period because of a very negative foreign exchange impact (essentially Egyptian pound, Thai baht and Indian rupee). Excluding that impact, revenues were up 2.5%.

Additionally, operating results for the period were affected by the temporary change in inventories. The overall impact of higher costs was only offset in part by price trend and efficiency measures.

Recurring EBITDA amounted to 92.7 million euros, down 17.4% (-13.3% excluding foreign exchange).

****

Cement and clinker sales volumes were up 1.9% at 9.0 million tonnes. Sales volumes increased in all the countries of the Western Europe zone (+14.3%). Sales remained stable in Morocco (+0.1%) and Egypt (+2.8%) but strongly declined in Bulgaria (-15.0%). North America was affected by adverse weather conditions resulting in a decrease of 15.3% in sales volumes. The price trend was particularly favorable in Thailand (+9.4%) and Egypt (+8.3%).

Aggregates sales volumes amounted to 6.5 million tonnes, slightly down (-2.7%). The slowdown mainly affected North America (-41.2%), Morocco (-40.5%), Spain (-39.6%) and Thailand (-27.5%).

Ready mix concrete sales volumes were up 3.8% at 2.2 million cubic meters primarily due to a significant increase in Thailand (+43.7%) which compensated for the drop in Morocco (-21.7%).

Consolidated revenues for the quarter amounted to 807.2 million euros, down 1.5% (+2.5% at comparable exchange rates) on the year-earlier period.

Recurring EBITDA was down 17.4% at 92.7 million euros despite a slight recovery in volumes and margins, due to the temporary change in inventories and the negative foreign exchange effect.

EBIT declined by 48.1% at 16.2 million euros after recognition of 78 million euros in amortization and depreciation (81 million euros in the first quarter of 2013).

After recognition of 20.3 million euros in net interest expenses (6.5 million euros in the first quarter of 2013), affected by the negative impact in 2014 of foreign exchange movements of -4.1 million euros (as against +7.5 million euros in the first quarter of 2013), the net consolidated profit/loss amounted to -13.5 million euros as against 0.5 million euros in the first quarter of 2013.

The share of profit/loss attributable to owners of the parent was -31.0 million euros as against -22.8 million euros in the first quarter of 2013. The share of profit/loss attributable to non-controlling interests amounted to 17.5 million euros (23.3 million euros in the first quarter of 2013).

Investments in industrial assets over the first three months of 2014 amounted to 118.6 million euros up on the first quarter of 2013 (68.5 million euros). They related mainly to India, Bulgaria, France/Belgium and Egypt.

As of 31 March 2014 net financial debt reported a slight increase of 95.0 million euros at 845.5 million euros as against 750.4 million euros as of 31 December 2013 (but was down 64.8 million euros from 31 March 2013).

Total equity amounted to 3,471.9 million euros as against 3,515.4 million at the end of December 2013. The debt to equity ratio (net financial debt/total equity) was 24.4% compared to 21.3% as of 31 December 2013.

OUTLOOK
Despite a difficult start to the year, the Group confirms its objectives to maintain a stable EBITDA (excluding foreign exchange effect and costs related to the new commercial program launched at the end of September 2013).

****

BUSINESS TREND FOR THE FIRST QUARTER OF 2014

Sales volumes by geographical segment and by business segment

Sales and internal transfers (1)

Cement & clinker
(millions of tonnes)

 Aggregates
(millions of  tonnes)		 Ready mix concrete
(millions of m3)

Q1
2014

% change vs. Q1 2013

Q1
2014

% change vs. Q1 2013

Q1
2014

% change vs. Q1 2013

A B A B A B
Western Europe

2.2

+14.3

+14.3

6.0

+2.8

+2.8

1.2

+3.6

+3.6

North America

0.6

-15.3

-15.3

0.2

-41.2

-41.2

0.1

-6.1

-6.1

Emerging Europe, North Africa & Middle East

3.3

-0.2

-0.2

0.3

-40.5

-40.5

0.6

-4.4

-9.6

Asia

2.8

+1.9

+1.9

ns

ns

ns

0.3

+35.7

+35.7

Cement/clinker trading

0.8

+30.3

+30.3

-

-

-

ns

 ns ns
Eliminations

(0.7)

-

-

-

-

-

-

-

-

Total

9.0

+1.9

+1.9

6.5

-2.7

-2.7

2.2

+3.8

+2.0

Western Europe: France, Belgium, Spain & Greece     North America: U.S.A., Canada & Puerto Rico
Emerging Europe, North Africa & Middle East: Egypt, Morocco, Bulgaria, Kuwait & Saudi Arabia                                                        
Asia: Thailand, India & Kazakhstan
(1)   Amounts given relate to fully consolidated companies and companies consolidated using the proportionate consolidation method up to Group share.
A: at historical consolidation scope     B: at comparable consolidation scope      ns: not significant

ECONOMIC TREND FOR THE FIRST QUARTER OF 2014

Breakdown by business segment

Revenues
(M€)		 Q1 2014 Q1 2013 % changes vs. Q1 2013
Historical basis 		% changes vs.
Q1 2013
Comparable basis & exchange rates
Cement & clinker 541.3 555.8 -2.6% +2.8%
Aggregates / RMC 231.0 231.3 -0.1% +0.7%
Others 34.9 32.0 +9.1% +10.7%
Total 807.2 819.1 -1.5% +2.5%

Breakdown by geographical segment

Western Europe

(M€) Revenues Recurring EBITDA EBITDA EBIT
Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
France/ Belgium 327.7 319.8 34.6 37.2 35.0 36.3 12.7 14.0
Spain 24.9 21.7   2.5  (0.5)  2.5  (0.6)  (0.7)  (4.4)
Other country*  6.4  5.0 (0.5) (1.4) (0.5) (1.4)  (1.6)  (2.0)
Intra-zone eliminations (3.0) (2.5) - - - - - -
Total 356.0 344.0 36.6 35.4 37.0 34.4 10.5 7.7

* Greece


North America

(M€) Revenues Recurring EBITDA EBITDA EBIT
Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
Total 61.3 74.1 (23.0) (11.7) (22.9) (11.3) (39.2) (27.8)

Emerging Europe, North Africa & Middle East

(M€) Revenues Recurring EBITDA EBITDA EBIT
Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
Egypt 137.6 136.4 28.0 37.6 27.9 37.4 16.0 24.0
Morocco 76.1 80.1 30.9 37.1 30.9 37.9 21.7 28.9
Other countries* 24.3 25.3 3.1 1.6 3.2 1.9 13.9 0.3
Total 238.1 241.7 62.0 76.3 61.9 77.1 39.0 53.1

* Bulgaria, Kuwait & Saudi Arabia.

Asia

(M€) Revenues Recurring EBITDA EBITDA EBIT
Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
Thailand 69.1 66.5 18.0 9.1 18.1 9.0 13.3 2.9
India 52.3 61.3 3.6 10.9 3.7 10.9 (0.4) 5.9
Other country* 3.7 8.2 (1.7) (0.3) (1.7) (0.3) (3.1) (2.0)
Total 125.1 136.0 20.0 19.7 20.1 19.6 9.7 6.8

* Kazakhstan

Cement/clinker trading

(M€) Revenues Recurring EBITDA EBITDA EBIT
Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
Total 46.6 39.0 2.5 1.8 2.5 1.8 1.9 1.1

Group total

(M€) Revenues Recurring EBITDA EBITDA EBIT
Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013
Others & eliminations* (20.0) (15.6) (5.4) (9.3) (5.4) (9.3) (5.7) (9.7)
Group Total 807.2 819.1 92.7 112.3 93.3 112.3 16.2 31.2

* Others: fuel trading, headquarters & holding companies
Revenues and recurring EBITDA in "Other countries"

(in millions of euros) Revenues Recurring EBITDA
Q1 2014 Q1 2013 Q1 2014 Q1 2013
Greece 6.4 5.0 (0.5) (1.4)
Western Europe 6.4 5.0 (0.5) (1.4)
Bulgaria 9.7 10.5 2.2 0.4
Kuwait 13.0 14.8 0.7 1.3
Saudi Arabia 1.6 - 0.1 -
Emerging Europe, North Africa & Middle East 24.3 25.3 3.1 1.6
Kazakhstan 3.7 8.2 (1.7) (0.3)
Asia 3.7 8.2 (1.7) (0.3)

***
The results for the first quarter of 2014 of Italcementi and Ciments Français will be illustrated during a Conference Call on Friday 9 May 2014 at 3:30 pm. The presentation will be broadcast in audio streaming on the italcementigroup.com and cimfra.com websites.
***

IFRS accounting standards
The first application of IFRS 10, 11 and 12 has mainly led to account joint-ventures, previously consolidated using proportionate method, under the equity method. This change in method, which has no impact neither on equity nor net profit/loss attributable to owners of the parent, affects the presentation of assets, liabilities, income statement and cash flow statement. For the Group, these impacts are limited.

ON THE INTERNET: www.cimfra.com:
http://www.cimfra.com/ & www.italcementigroup.com:
http://www.italcementigroup.com/

Ciments Français  Ciments Français
Media Relations  Investor Relations 
Tel: + 33 (0)1 42 91 76 87 Tel: +33 (0)1 42 91 76 76

DISCLAIMER
This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its Internet website (www.cimfra.com:
http://www.cimfra.com/). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.

Appendices

Ciments Français Group

Income statement

(in millions of euros) 31 March 2014 31 March 2013 2014/2013
% change
Amounts % Amounts %
Revenues 807.2 100% 819.1 100% -1.5%
Other revenues 2.8 4.2
Change in inventories (0.5) 6.1
Internal work capitalized 1.7 2.1
Raw materials and utilities (332.7) (341.0)
Service expense (224.8) (217.2)
Personnel expense (145.8) (146.2)
Other operating income (expense) (15.1) (14.7)
Recurring EBITDA 92.7 11.5% 112.3 13.7% -17.4%
Net capital gains (losses) on sale of fixed assets 0.6 1.9
Other non-recurring income (expense) ns (1.8)
EBITDA 93.3 112.3 13.7% -17.0%
Amortization and depreciation (77.6) (81.2)
Impairment 0.5 ns
EBIT 16.2 2.0% 31.2 3.8% -48.1%
Finance income 4.0 6.2
Finance costs (19.9) (19.4)
Gains (losses) on derivatives and exchange rates (4.3) 6.7
Finance income (costs), net (20.3) (6.5)
Share of profit (loss) of associates (0.5) (1.3)
Profit (loss) before tax (4.6) -0.6% 23.4 2.9%
Tax expense (8.8) (22.9)
Net profit (loss) (13.5) -1.7% 0.5 0.1%
- attributable to owners of the parent (31.0) (22.8)
- attributable to non-controlling interests 17.5 23.3
Financial position 31 March 2014 31 December 2013 31 March 2013
Net financial debt 845.5 750.4 910.3
Total equity 3,471.9 3,515.4 3,778.1

Ciments Français Group

Statement of change in net financial debt

(in millions of euros) 31 March 2014 31 March 2013
Cash flow from operating activities 51.3 88.0
Change in working capital requirement (9.6) (75.9)
Total cash flow from operating activities 41.7 12.1
Investments in PPE and intangible assets (97.4) (59.5)
Change in PPE and intangible assets payables (21.2) (8.9)
Cash flow from operating activities net of capital expenditure (76.9) (56.3)
Equity investments (0.8) (0.6)
Disinvestments 1.9 2.3
Dividends paid 0.2 (0.7)
Change in foreign exchange on NFP and others (19.4) (16.3)
Change in net financial debt (95.0) (71.6)
Press release:
http://hugin.info/143406/R/1783985/611127.pdf


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Source: CIMENTS FRANCAIS via Globenewswire
HUG#1783985