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Cementos Portland Valderrivas returns to profit

28/07/2010

Cementos Portland Valderrivas returns to profit

The group attained 109 million euro in EBITDA and 2.4 million euro in net profit in the first half of 2010. The EBITDA margin improved to 25.2%.
Cementos Portland Valderrivas returns to profit

The Cementos Portland Valderrivas group is back in the black. In the first half of 2010, it attained 109.6 million euro in EBITDA and 2.4 million euro in attributable net profit on 435 million euro in revenues.

The EBITDA margin increased to 25.2%, 2 points more than in the first quarter, basically due to attainment of recurrent savings under the Plan 100+. Capital expenditure was contained, cash flow was maximised and profit margins improved. The result is that the cement group is now in a better competitive position to address the change in the economic cycle.

Cement consumption improved in the second quarter, enabling the group to project a profit in 2010 as a whole. International economic agencies maintain a positive outlook for the economic recovery. The improvement in industrial output indicators augurs well for the coming months.

Recurrent savings of over 100 million euro
Good progress was made with the Plan 100+ cost saving programme in 1H10. On an annualised basis, the savings attained to date exceed the target of 100 million euro. Consequently, that target is expected to be exceeded by year-end, bringing forward the achievements projected for 2009-2011 by one year.

Eco-efficiency measures
The Group maintains two lines of action under its eco-efficiency policies. The first aims to increase the use of alternative fuels at its plants. The second seeks to adapt all the Group's facilities to be able to use new alternative fuels such as biomass. The Group plans for 30% of fuel use to be from alternative sources by 2013, which will significantly reduce CO2 emissions.

In June, the Madrid Regional Government granted Cementos Portland the European Excellence Award, basically for the steps taken at the El Alto plant in Morata de Tajuña (Madrid) and the results obtained with its strict environmental management approach.

Concrete roads
Following satisfactory tests with new concrete road surfaces, a scientific and technical manual is being developed to disseminate innovative construction procedures and highlight concrete's advantages for roads in terms of technology, economics and sustainability. Concrete will be the alternative material in road and highway construction in Spain as from 2011.

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