Italcementi sees negative trend in European markets lasting into 2010

Italcementi, the world's fifth largest cement maker, said that recovery would take longer than previously expected and that some of the cost cuts planned for 2009 would instead be achieved next year.

Chief Operating Officer Giovanni Ferrario forecast what he called a negative trend to continue into 2010 inGreece, Bulgaria, Turkey, Italy, France, Belgium and Spain, referring to volumes and in some cases to prices.

The countries contributed to more than half of the group's revenues in nine-month 2009.

Family-controlled Italcementi said its nine-month net profit nearly halved and forecast a 2009 operating result lower than 2008.

"Visibility is quite complicated," Ferrario said of 2010 during a conference call.

"We will probably see some delay in recovery compared with previous expectations. But the fundamentals of this business still remain very positive and we will come out of this crisis with much better margins," Ferrario noted. "It's just a matter of crossing a difficult period that could be six months, nine months."

Another company executive reported that the group would achieve cost savings of 205-210 million euros in 2009, against the forecast 220 million, with the remainder to be achieved next year.

From China Cement (2009-11-16)