VICAT PRESS RELEASE
Higher business levels in all regions except France and Italy
Accelerating deployments in India and Kazakhstan
Continued recovery in business in Egypt and the USA
Solid financial position
Paris La Défense, November 4, 2014: The Vicat group (NYSE Euronext
Paris: FR0000031775 - VCT) has today reported its sales for the nine months
ended Sept
mber 30, 2014, which rose +6.1% year-on-year to €1,847 million.
At constant scope and
exchange rates, sales were up
+9.7% relative to the
year-earlier
period. In
the third quarter, sales were up +6.2%
or +7.4% at
STÉPHANE BISSEUIL TEL: +33 (0)1 58 86 86 13
stephane.bisseuil@vicat.fr
constant scope and exchange rates. Consolidated sales by business segment:
FRANCOIS LESAGE
TEL: +33 (0)1 58 86 86 26 francois.lesage@tbwa- corporate.com
Commenting on these figures, the Group's CEO stated: "Vicat'sperformance in the first nine months of 2014 once again confirms the wisdom of
the Group's
diversification strategy. The
acroeconomic situation remains
HEAD OFFICE:tough in Eu ope, and particularly in France. However,
the Group is benefiting
TOUR MANHATTAN
6 PLACE DE L'IRIS
F-92095 PARIS - LA DEFENSE CEDEX
TEL : +33 (0)1 58 86 86 86
FAX :+33 (0)1 58 86 87 88
from investments made in recent years, which are driving further solid business growth. We are rapidly ramping up our business in India and Kazakhstan, and our recovery in Egypt and the USA is also continuing at a strong pace. Against that backdrop, we are maintaining our aim of maxiimising cash flow and reducing debt."
A FRENCH REGISTERED COMPANY WITH SHARE CAPITAL OF €179,600,000
EU VAT IDENTIFICATION NUMBER: FR
92 - 057 505 539
RCS NANTERRE
1/11
PRESS RELEASE
Consolidated sales in the first nine months of 2014 totalled €1,847 million, an increase of +6.1% or
+9.7% at constant scope and exchange rates relative to the year-earlier period.
In the first nine months of 2014, operational sales grew +15.8% in the Cement business, were stable in Concrete & Aggregates (+0.9%) and increased slightly in Other Products & Services (+1.9%). As a result, the breakdown of nine-month operational sales by business shows that the contribution of the Cement business rose substantially, accounting for 53.6% of the total as opposed to 51.1% in the first nine months of 2013. The Concrete & Aggregates business accounted for 31.8% of total operational sales, versus 33.5% in the year-earlier period. Other Products & Services accounted for a smaller share of operational sales, i.e. 14.7% in the first nine months of 2014 as opposed to 15.3% in the year-earlier period.
Consolidated sales in the third quarter of 2014 totalled
629 million, up +6.2% year-on-year or +7.4%
at constant scope and exchange rates. At constant scope and exchange rates, operational sales rose
+18.7% in the Cement business but fell -4.3% in Concrete & Aggregates and -4.0% in Other Products
& Services.
In this press release,
and unless indicated
otherwise,
all changes are based on the first nine
months of 2014 by comparison with the first nine months of 2013, and are at constant scope and exchange rates.
1. Geographical breakdown of consolidated sales in the nine months ended 30 September 20141.1. France
(€ million) | 9 months 2014 | 9 months 2013 | Change | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope |
Consolidated sales | 642 | 651 | -1.3% | -2.2% |
Sales in France fell -2.2% in 2014 in the first nine months of 2014. The decline was mainly the result of a weak macroeconomic environment, particularly the slowdown in the construction market.
Whereas business levels in early 2014 were supported strongly by good weather conditions, sales fell
-9.1% in the third quarter. That decrease was partly due to the fact that there was one less business day in Q3 2014 than in Q3 2013.
In the Cement business, consolidated sales fell by -3.2%. Operational sales were down -
2.5%, with stable volumes (+0.2%) but a fall in selling
prices, due in particular to an
unfavourable change in the product mix. Consolidated sales in Q3 fell by -13.6%. Operational sales were down -10.1%, affected by record rainfall and a lower number of business days. Taking into account those factors, along with the macroeconomic enviironment, volumes fell -
7% in Q3.
2/11
PRESS RELEASE
In the Concrete & Aggregates
business,
consolidated sales fell by -3.2%. Concrete
volumes were
up almost +2%, whereas aggregates
volumes felll by more than -5%.
Conversely, average selling prices fell slightly in concrete, but rose in aggregates. In the third quarter, sales fell -8.0% because of lower volumes in both concrete and aggregates.
In the Other Products & Services
business, sales rose +2.0% in the first nine months of2014, but fell -5.0% in the third quarter.
1.2. Europe (excluding France)
(€ million) | 9 months 2014 | 9 months 2013 | Change | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Consolidated sales | 317 | 318 | -0.2% | -1.4% |
Sales in Europe excluding France fell slightly (-1.4%) at constant scope and exchange rates, and were down -7.0% in the third quarter.
In Switzerland, sales fell -1.3% in the first nine months of the year at constant scope and exchange rates, although overall conditions remained supportive. In the third quarter, sales were down -7.4% at constant scope and exchange rates. The contraction resulted from a high base for comparison, since Q3 2013 figures were boosted by a catch-up effect following a particularly harsh winter. The end of certain projects that had begun in 2013 also affected this year's third quarter performance. In Cement, consolidated sales fell -5.7% at constant scope and exchange rates. Operational
sales were down -4.4%.
The decline was due
to a fall
in volumes of aroun
-3%, while
average selling prices were slightly lower, mainly because of an unfavourable change in the
product mix. In
the third
quarter, consolidated
sales fell
by -3.7%
at constant scope and
exchange rates. Operational sales were down -9.5%, with volumes falling by a little more than
-8%.
In the Concrete & Aggregates business, consolidated sales were stable (+0.3%) in the first
nine months of 2014. Volumes fell
slightly in concrete, and rose in
aggregates. In the third
quarter, Concrete & Aggregates sales were down -13.2% because of a sharp fa l in concrete volumes, resulting from the end of some major projects. Aggregates volumes also fell, but by a much smaller margin. Selling prices rose slightly in concrete but fell in aggregates in both the third quarter and the whole nine-month period.
The Precast business posted a +0.7% increase in sales i third quarter sales fell -2.7%.
the first niine months of 2014, but
In Italy, sales were down -4.9% in the first nine months of the year but up +3.9% in the third quarter. Since the start of 2014, the sector background in Italy has been badly affected by tough macroeconomic conditions.3/11
PRESS RELEASE
1.3. United States
(€ million) | 9 months 2014 | 9 months 2013 | Change | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Consolidated sales | 184 | 166 | +10.8% | +13.7% |
Sales in the United States rose +13.7% at constant scope and exchange rates, including a +9.5% increase in the third quarter. This performance reflects the gradual upturn in the US economy over the last few quarters.
The Cement business continued to recover, with consolidated sales up +17.1% in the first nine months of the year and a +17.9% increase in operational sales. Volumes continued to rise in the first nine months (+11%), and growth was stronger in California (+13%) than in the Southeast (+9%), where the business was affected by poor weather conditions in the first quarter. Selling prices were more than 8% higher than in the year-earlier period. In the third quarter, consolidated sales were up +13.9% (operational sales up +17.5%), driven by volume
growth of over 8% in both California and Alabama, and
y the full
effect of the April price
increases. Changes in the client mix also had a positive effect on average selling prices in
California in the third quarter.
In Concrete, consolidated sales grew +12.4% at constant
cope and exchange rates. Growth
was driven by a +7% increase in selling volumes, with a substantial increase in California and a very slight rise in the Southeast. There was a solid increase in selling prices in the first nine months of 2014, reflecting the improved macroeconomic and sector environment. In the third quarter, sales growth remained firm at +7.8%.
4/11
PRESS RELEASE
1.4. Asia (Turkey, India and Kazakhstan)
(€ million) | 9 months 2014 | 9 months 2013 | Change | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Consolidated sales | 403 | 361 | +11.6% | +28.3% |
Sales rose +28.3% in the first nine months of 2014, with solid growth in all three countries. In the third quarter, business momentum remained strong in the region, with sales up +35.5% at constant scope and exchange rates.
In Turkey, sales amounted to €171 million, up +11.3% at constant scope and exchange rates. In the
first half of 2014, the Group enjoyed good
weather conditions and a positive macroeconomic and
sector environment, although growth was slower than in 2013. However, sales grew more slowly in the third quarter (+4.1%), mainly because of a high base for comparison.
In the Cement division, consolidated sales grew +21.1% at constant scope and exchange rates in the first nine months of 2014. Operational sales were up +15.1%. Growth was driven
by higher selling prices,
offsetting a
near -7%
fall in volumes during the period. Although
weather conditions were excellent in Q1, they were much less favourable in the following two
quarters. Volumes were also affected by delays and postp
nements affecting a large number
of projects following government
measures
taken in response to the Soma disaster.
Nevertheless, consolidated sales rose +13.5% in the third quarter.
Sales in Concrete & Aggregates fell -2.9% at constant scope and exchange rates. Volumes
fell
in both concrete and
aggregates. Selling
prices rose firmly because of
the Group's
selective strategy in this
business
segment. In the third
quarter,
sales fell
more sharply
(-11.4%) because of a high base for comparison, although price condi tions remained positive.
In the third quarter, sales in India were up +83.5% at constant scope and exchange rates, supported by volume growth of almost +54%. Selling prices increased substantially in the third quarter.
In Kazakhstan, the Group is continuing to ramp up its business. Sales in the first nine months of the year totalled €59 million (+19.8%), underpinned by a near +27% increase in volumes. Over the period as a whole, the Group shipped almost 1.1 million tonnes of cement. However, selling prices fell during the period, due in particular to uncertainty relating to the country's recent devaluation even if, they
should start rising again given the market's
fundamentals. Volumes rose almost +70% in the third
quarter, driving a +59.4% increase in sales at constant scope and exchange rates.
5/11
PRESS RELEASE
1.5. Africa and Middle East
(€ million) | 9 months 2014 | 9 months 2013 | Change | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Consolidated sales | 301 | 245 | +22.9% | +25.3% |
In the Africa and Middle East region, consolidated sales were up +25.3%
at constant scope and
exchange rates in the first nine months of 2014 and up +37.3% in t
e third quarter.
nd exchange rates. That increase
resulted from growth
in shipped
volumes,
which rose more than +34%, supported by a buoyant
market and
an improved security situation
in the North Sinai region. Since the start
of the year,
demand has remained firm, while supply has continued to be hampered by power cuts. That situation has resulted in a substantial increase in selling prices. In the third quarter, sales rose +135.9%, driven by volume growth of almost 84% and ongoing price increases. Volume growth in the third quarter was also boosted by a very low base of comparison as the Egyptian army had intervened in August 2013 to restore security in the Sinai region, seriously affecting Group sales at the time.
In West Africa, sales
rose by +13.4%, with positive
market conditions in
all countries within the
region. Cement volumes grew more than +15%. Although selling prices are stabilising gradually on a sequential basis, they continued to show a year-on-year decline because of price decreases in 2013. In the third quarter, commercial momentum remained positive with sales growth of +13.0%.
6/11
PRESS RELEASE
2.1. Cement
for the nine months ended 30 September 2014 by business(€ million) | 9 months 2014 | 9 months 2013 | Ch ange | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Volume (thousands of tonnes) Operational sales Eliminations Consolidated sales | 15,822 1,129 (169) 960 | 13,679 1,026 (171) 855 | +15.7% +10.1% +12.2% | +15.8% +18.6% |
Consolidated sales in
the Cement business were up
+12.2% or +18.6%
at constant scope and
exchange rates. Volumes were up +15.7% in the first nine months.
In the third
quarter, consolidated sales rose +19.0%
or +21.8% at constant scope and exchange
rates. Cement volumes increased by +17.5% in the third quarter.
2.2. Concrete & Aggregates
(€ million) | 9 months 2014 | 9 months 2013 | C hange | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Concrete volumes (thousands of m3) Aggregates volumes (thousands of tonnes) Operational sales Eliminations Consolidated sales | 6,267 16,208 670 (17) 653 | 6,405 17,181 673 (18) 655 | -2.1% -5.7% -0.4% -0.2% | +0.9% +1.0% |
Consolidated sales in
the Concrete & Aggregates business were stable (-0.2%) or
up +1.0% at
constant scope and exchange rates.
Shipped concrete volumes were down -2.1% in the first nine months, and aggregates volumes were down -5.7%.
In the third quarter, consolidated sales fell by -5.4% or -5.3% at constant scope and exchange rates. Volumes were down -6.7% in concrete and down -13.9% in aggregates.
7/11
PRESS RELEASE
2.3. Other Products & Services
(€ million) | 9 months 2014 | 9 months 2013 | Ch ange | |
(€ million) | 9 months 2014 | 9 months 2013 | Reported | At constant scope and exchange rates |
Operational sales Eliminations Consolidated sales | 309 (75) 234 | 307 (77) 230 | +0.8% +1.6% | +1.9% +1.2% |
Consolidated sales in the Other Products & Services business were up +1.6% or +1.2% at constant scope and exchange rates. In the third quarter, consolidated sales fell -3.1% or -3.9% at constant scope and exchange rates.
3. Financial position
Vicat's financial
position
remains
very
healthy.
Gearing
was
51.7% at
30 September 2014, versus 52.7% at 30 June 2014.
This level of gearing, slightly lower than at 30 June 2014, includes the net payment of 46 million euros
related to the 100% acquisition of Vicat Sagar Ceme
t in India, the suspensive conditions having
been definitely lifted. This company, based in the North of Karnataka, operates a plant with a capacity
of 3 million tonnes of cement per year and benefits from the latest cement electric generation system and access to rail network.
technologies, a captive
Bank covenants do not pose a threat either to the Group's financial position or to its balance sheet
liquidity. Vicat complies with all financial agreements.
ratios required by covenants
contained
in financing
Events subsequent to 30 September 2014
As part of the Group's debt-reduction strategy, the holding companies that own a majority of Vicat SA's capital - SOPARFI and PARFININCO - decided on Wednesday 29 October 2014 to acquire 24.6% of SOPARFI shares held by Group subsidiaries BCCA and SAPV.
Those purchases are part of an initiative to streamline and simplify the Group's holding company-based
ownership
structure.
Based on
a valuation of SOPARFI shares establlished by
an independent
international audit firm, the overall amount of the transaction will be €114 million.
After the transaction, and before the cancellation of SOPARFI shares held b y SOPARFI itself, BCCA and
SAPV's combined stake in SOPARFI will amount to 18.4%.
The overall after-tax capital gain from the disposal transaction will be €72 million. That amount will be recognised in Vicat's consolidated equity and will be used to pay down the Group's debt.
8/11
PRESS RELEASE
or 2014, the Group wishes to provide the following co
ments concerning its various markets:
In France, in
2014, the
Group expects market conditi
ns to continue to be affected
by a
macroeconomi
situation that is likely to stabili
e only very slowly. Volumes are expected to fall
slightly and the price environment should decline slightly.
In Switzerland, the market is expected to remain dynamic, although volume gro
th will refl
ct the
effe
ts of a high basis of comparison from the strong year in 2013. Average pric
s are likely to be
down very slightly.
In Italy, the macroeconomic situation remains weakened by the recent recession, and volumes are
exp
cted to fall, although the pace should gra
ually slow. Given the
low volumes expected this
year, prices are likely to be affected by tougher competitive pressures.
In t
e USA, v
lumes are expected to continue to rise, in line with the economic recovery in the
cou
try. Selling prices are also expected to rise.
In Turkey, in
year mar
ed by elections, the Group's performances
will benefit from continued
favourable market conditions albeit in a macroeconomic climate marked by exchange rate v
latility
and rising interest rates.
iven these circumstances, the
roup expects performance to continue
improving in Turkey, altho
gh at a slower pace t
an in the past.
In India, following May's elections, and given the first elements of the economic stimulus package to have been announced, the Group is expecting a gradual improvement in the economic climate
and market co
ditions ov
r the course of the year. Again
t this background, and with continued
gains being m
de by Bh
rathi Cement and Vi
at Sagar Cement, th e volumes delivered by the
Gro
p in this region are likely to grow strongly. Selling prices are likely to remain
ighly volatile, but
sho
ld be bolstered by th
gradual recommenc
ment of infrastructure and housing projects in the
second half of
014. On a medium- t
long-term view, the
roup remaiins very confident that it can
take
full advantage of its
high-quality positions
in the In
ian market, which c
ntinues to
show
excellent potential.
In Kazakhstan, the Gro
p's ideal
geographical location
and highly effective
production
base
sho
ld enable it to benefit from a market poised for solid growth.
In Egypt, the
macroeconomic situation and the gradual
improvement in security will help the
Gro
p to return to growth in more favourable market conditions. Thus the improv
ment in volumes
and prices is li
ely to partially offset the sharp rise in ener
y costs and allow the Group to record
an improvement in its results over the course of 2014.
In
est Afric
, the market should remain favourably ori
nted over
ll in terms of consu
ption.
Prices are likely to remain under pressure, but the trend will depend, among other things, on the
potential arrival in the market of a
new com
etitor. In the mediu
term, th
Group remains
confident in its ability to reap the full
enefits from its modern producti
n facilities, its knowledge of
the Senegalese market and its ability to export throughout t
e region.
9/11
PRESS RELEASE
To accompany the publication of its sales for the nine months ended 30 September 2014, the Vicat group is organising a conference call that will be held in English on Wednesday, 5 November 2014 at
3pm Paris time (2pm London time and 9am New York time).
To take part in the conference call live, please dial one of the following numbers:
France:
United Kingdom: United States:
+33 (0)1 76 77 22 30
+44 (0)20 3427 1912
+1 718 444 0896
To listen to a playback of the conference call, which will be available until 7pm on 12 November 2014, please dial one of the following numbers:
France:
+33 (0)1 74 20 28 00
United Kingdom: +44 (0)20 3427 0598
United States: +1 347 366 9565
Access code: 2995700#
Investor relations contact:
Stéphane Bisseuil
Tel: +33 (0)1 58 86 86 13 stephane.bisseuil@vicat.fr
Press contacts:
François Lesage
Tel: +33 (0)1 58 86 86 26
ABOUT VICAT
The Vicat Group has over 7,500 employees working in three core divisions, Cement, Concrete & Aggregates and Other Products & Services, which generated consolidated sales of €2,286 million in 2013.
The Group operates in 11 countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan and India. More than 63% of its sales are generated outside France.
The Vicat Group is the heir to an industrial tradition dating back to 1817, when Louis Vicat invented
artificial cement. Founded in 1853, the Vicat Group now operates three core lines
Cement, Ready-Mixed Concrete and Aggregates, as well as related activities.
of business:
10/11
PRESS RELEASE
This press release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company's
annual report available on its website (www.vicat.fr).
These statements do not reflect the future
performance of the Company, which may provide updates of these statements.
differ significantly. The Company
does not undertake to
Further information about Vicat is available from its website (www.vicat.fr).
Cement | Concrete & Aggregates | Other Products & Services | Intra-gr oup sales | Consolidated sales | |
France Europe (excl. France) USA Turkey, Kazakhstan, India Africa and Middle East | 275 130 85 356 283 | 324 129 130 69 18 | 182 100 - 27 - | (138) (42) (31) (49) (0) | 642 317 184 403 301 |
Operational sales | 1,129 | 670 | 309 | (261) | 1,847 |
Intra-group sales | (169) | (16) | (75) | 261 | - |
Consolidated sales | 960 | 653 | 234 | - | 1,847 |
11/11
|
distributed by
|
