Imerys Group reports turnover growth

Imerys Group, one of the world’s largest producers of industrial minerals, reported a 4.2% increase in turnover in the third quarter of 2008 reaching a total of 2,660 million euro compared to 2,552 million euro during the same period in 2007. The rise in sales was largely due to an excellent performance in emerging countries where the Group reported a 24% increase in sales (23% of total turnover). A significant contribution was also made by the increase in raw materials prices (+3.7%) while sales volumes increased more moderately (+0.7%) due to the difficulties in the construction sector.

Operating margins were hit by the sharp rise in energy costs, with EBITDA falling to 328.3 million euro (compared to 361.8 million euro in 2007) and EBIT dropping by 4.8% to 220.8 million euro (compared to 231.8 million euro in the same period the previous year).

The Minerals for Ceramics, Refractories, Abrasive & Foundry division is also in a good state of health. In spite of the fall in demand for minerals for the ceramic industry throughout Europe due to the crisis in the construction industry, sales to 30 September 2008 rose by 14.6% to a total of 890.8 million euro. The acquisitions made by the Group in 2007 contributed significantly to these results.

A fall in the volume of sales is expected in the fourth quarter of 2008, a trend that is already evident in some areas of the group’s activity. A 15% fall in net profits over 2007 is expected.