Profits at cement company Cimpor fall 15.4 pct in first quarter and assets in China may be handed over to Brazil’s Votorantim

8 May 2012

Portugal-based cement company Cimpor – Cimentos de Portugal posted net profit of 49 million euros in the first quarter of the year, a year-on-year drop of 15.4 percent, due to a number of factors, the main one of which being an 8 percent decrease in cement sales the company said in a report published Monday in Lisbon.

According to the interim consolidated financial report, published via Portuguese market regulator CMVM, cement sales growth seen in Brazil and Mozambique was not enough to mitigate steeper drops seen in Turkey, Spain, and China.

The company’s result were also affected by “Economic contraction in Iberia, construction slowdown, reduction of credit and increased supply in China, harsh winter conditions in Turkey and no CO2 sales.”

In the period the Portuguese cement company – on which Brazil’s Camargo Corrêa launched a takeover bid at the end of March – posted consolidated turnover of 521.2 million euros, or 4.9 percent less than in the same period of 2011.

As part of the bid, Camargo Corrêa proposed to hand over all the assets Cimpor has in China, Spain (except for Cimpor Inversiones and Cimpor Sagesta), India, Morocco, Tunisia, Turkey, and Peru to Brazilian company Votorantim in exchange for the 21.2 percent stake the company owns in Cimpor.

“The assets to be swapped will be valued by independent bodies in line with applicable legal and statutory rules and Votorantim’s shares in Cimpor will be valued at the price offered in the takeover,” said InterCement, the company that launched the takeover on behalf of Camargo Corrêa.

In the statement, Intercement said that there was a strong possibility that Votorantim would accept the proposal, “taking into consideration the interests at play, the regulatory context in Brazil and discussions with Votorantim in the meanwhile, after the preliminary announcement of the takeover bid.” (macauhub)