Buzzi Unicem race accelerates after the release of half-yearly data: the share rises by 6,64% to 7,465 euros per share, among the best in the Ftse Mib. The group sees a decrease in net profits of 29,8% to 11,9 million euro, but confirms for 2011 recurring operating results better than 2010 thanks to a second half expected to improve.
“On the price front, thanks to the more favorable comparison base and lively demand, we believe that the average value at the end of the year will generally be higher than in 2010, with a few exceptions (Czech Republic, United States). The absolute level of energy costs remains very high but volatility could decrease in the second half of the year. Overall, we believe the premises exist for obtaining an improvement in the second half of the year compared to 2010 and therefore confirming, for the whole of 2011, the forecast of better recurring operating results than the previous year”, reads the Buzzi unicem note.
However, the two-speed trend of the markets in which the group operates will continue in the second half of the year: persistent difficulties in the construction sector in Italy and the United States and a good recovery in sales volumes in Eastern Europe, Central Europe and Mexico which has allowed the end the group to increase net revenues by 9,1% to 1,24 billion against 1,23 billion in the first six months of 2010.
However, the favorable volume effect has not yet translated into an improvement in prices, although, the group notes, the situation at the end of June improved almost everywhere compared to the output values. The unfavorable price effect and the sharp increase in energy costs (especially fuel) continued to penalize operating profitability: the gross operating margin was equal to 183,1 million, against 189,3 million in 2010 (-3,2, 5,1%) but at constant exchange rates and perimeter EBITDA would have contracted by XNUMX%
