Italy's Buzzi posts H1 sales fall, keeps upbeat outlook (updated)
02/08/2024 14:48
(Adds details of Ukraine (paragraphs 5-8), Russia (9)
Aug 2 (Reuters) - Italian construction group Buzzi
BZU.MI posted a 4.5% drop in first-half revenue on Friday,
hurt by weak demand in Central Europe and adverse weather in
Italy and the United States, but it said it expected demand in
Italy to stabilise.
Buzzi said its revenue fell to 2.1 billion euros ($2.27
billion) in the first six months compared to the same period
last year, with sales of cement and clinker down 8.0% and
concrete sales dropping by 8.8%.
"The decline at the beginning of the year continued into the
second quarter, albeit to a lesser extent, due to still weak
demand in Central Europe and increased rainfall, especially in
Italy and the United States," the company said in a statement.
Buzzi retained an upbeat outlook, however, saying it
expected demand in Italy to stabilise in the second half, thanks
in part to the country's National Recovery and Resilience Plan.
Sales volumes improved in Ukraine, growing to 44.7 million
euros during the first half of the year, compared to 35.1
million euros in the first six months of 2023, despite the
impact of the devaluation of the local currency.
Buzzi in 2023 reached an agreement for the sale of its
Ukrainian operations to CRH CRH.N , although the closing of the
transaction is subject to regulatory approvals.
Ukraine's competition watchdog, the Antimonopoly Committee
of Ukraine, said on July 25 that the that the deal "may lead to
monopolization or significant restriction of competition" in the
cement and concrete market.
It did not halt the sale, however, on condition that CRH
take certain steps to ensure the competition.
Buzzi subsidiaries in Russia reported net sales of 132.5
million euros in the first six months of 2024, a 7,2% drop from
the same period of 2023. Buzzi in May 2022 ceased all
operational involvement in activities carried out by its
subsidiaries in Russia, the statement said.
($1 = 0.9234 euros)
(Reporting by Luca Fratangelo, Andrey Sychev; editing by Conor
Humphries)
((luca.fratangelo@thomsonreuters.com; +48587696613;))