FINANCE
13
CONSTRUCTION EUROPE
SEPTEMBER 2014
Company
Currency Price
Price Change Change
at start at end
(%)
CEM Index
162.82 157.39 -5.43
-3.33%
Buzzi Unicem (Ord)
€
12.60
11.53
-1.07
-8.49%
Cemex (CPO)
MXP
17.36
16.95
-0.41
-2.36%
Cimpor
€
2.63
2.24
-0.39 -14.83%
CRH
€
18.98
17.51
-1.47
-7.74%
Heidelberg Cement
€
60.21
57.03
-3.18
-5.28%
Holcim
CHF
78.40
73.55
-4.85
-6.19%
Italcementi
€
6.53
5.51
-1.02 -15.56%
Kone (B)
€
30.32
32.46
2.14
7.06%
Lafarge
€
63.51
58.45
-5.06
-7.97%
Saint-Gobain
€
38.12
38.37
0.25
0.67%
Schindler (BPC)
CHF
134.00 132.70
-1.30
-0.97%
Schneider Electric
€
66.96
64.59
-2.37
-3.54%
Titan Group (Common)
€
22.00
20.35
-1.65
-7.50%
Vicat Group (Common)
€
59.59
55.60
-3.99
-6.70%
Wienerberger
€
12.50
11.37
-1.13
-9.04%
Wolseley
UK£
31.89
32.32
0.43
1.35%
Period: Week 28 - 34
MATERIALS PRODUCERS
The company has seen two
CEOs resign since the start of
January 2013 because of profit
warnings, so it has a lot to prove.
The materials sector also saw
some heavy losses in late July
and August, with the CEM Index
falling 3.33%.
Most of the companies that
form the index saw their share
such as bonds and asset-backed
securities. This would increase
the supply of money in the
financial system and hopefully
push prices up.
MARKET PERFORMANCE
Although Eurozone deflation is a
serious global economic threat,
the market reaction was not as
bad as it could be.
From weeks 28 to 34, the Dow,
FTSE and Nikkei 225 were all
up. However, the worries clearly
weighed heavier within the
Eurozone, with both the CAC 40
and DAX losing ground.
The construction sector was
down over the same six-week
period, with the CET Index for
the whole industry losing 1.95%
of its value – about in line with
losses on the German and French
bourses.
The heaviest loss was for
contractors’ shares, with the CEC
Index for this sector losing 3.88%
of its value between weeks 28
and 34.
There were a number of
companies that saw double-digit
falls – Astaldi, Ballast Nedam,
Bauer, Bilfinger, FCC, OHL, Salini
Impregilo and YIT. In some cases
this was a result of poor half-year
results.
Indeed, in Bilfinger’s case, a
trading statement warning of
weaker than expected profits was
enough to prompt Ronald Koch,
the chairman of the executive
board to resign.
Among the few companies that
saw their share prices rise over
the six-week period were Balfour
Beatty and Carillion, which was a
result of the on/off merger talks
between the two companies.
The fact that the two companies
were in talks emerged at the end
of July, however, Balfour Beatty
walked away from it about a
week later.
The sticking point seemed to be
Balfour Beatty’s previously stated
plan to divest its US engineering
subsidiary Parsons Brinckerhoff.
Two further offers were made
by Carillion, but Balfour Beatty
rebuffed both of these.
Both companies’ share prices
rose on the back of the news, but
now a deal looks unlikely.
Balfour Beatty’s board in
particular will have to work hard
to show it was right to turn down
an offer that would have paid a
premium to shareholders.
2 / 3
Built to Bobcat’s high equipment standards, Bobcat excavators are
designed to deliver strong performance in low weight machines
to put operators and owners in charge of labour-saving strength
and productivity. The Bobcat line of compact excavators is a perfect
example of our approach to design: never stop making it better.
E20
LATER THAT NIGHT…
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