28 July 2014
Anglo American reports 48% increase in profit 28 July 2014
US: Anglo American plc has reported 48% growth in its first half of 2014 pre-tax profit. Its underlying operating profit declined as revenues were hurt by lower commodity prices, despite increased production. Anglo American has also signed a binding agreement for the sale of its 50% stake in the Lafarge Tarmac Holdings Ltd joint venture in the UK for at least US$1.50bn.
During the first half of 2014, Anglo American's pre-tax profit climbed to US$2.95bn from US$1.99bn in the same period of 2013. Special items and re-measurements, including the attributable share of associates and joint ventures and after tax and non-controlling interests, amounted to a gain of US$180m, compared to a loss of US$847m in 2013. Underlying earnings were US$1.28bn, some 3% higher than the US$1.25bn that was reported in the same period of 2013.
Underlying operating profit fell by 10% to US$2.93bn from US$3.26bn in 2013. Lower realised prices of commodities resulted in a reduction of US$1bn in underlying operating profit. Group revenue, including associates and joint ventures, declined slightly to US$16.1bn from US$16.2bn in 2013, which was attributed to a drop in many commodity prices, continuing weak global economic growth and increases in seaborne commodity supply.
"As we look at the global economic outlook, uncertainty is likely to persist for the balance of 2014, though there are some encouraging signs that activity is strengthening in our key markets," said Anglo American's CEO Mark Cutifani said. "Over the long term, we expect new supply to be constrained and to see tightening market fundamentals and a recovery in price performance."
India: JK Lakshmi Cement has reported a 31% turnover increase to US$111m in the second quarter of 2014, which ended on 30 June 2014, compared to US$85.0m in the corresponding quarter of 2013. The increase was attributed to 14% growth in production and an 18% increase in sales volumes.
JK Lakshmi Cement's operating profit during the quarter stood at US$19.3m. This represents a 58% increase compared to the same period of 2013, when operating profit was US$12.2m. After providing for interest and depreciation, the company's pre-tax profit rose to US$11.0m, compared to US$2.96m in the same period of 2013. After accounting for exceptional items and tax, JK Lakshmi Cement posted a net profit of US$6.73m for the second quarter of 2014, up from US$2.61m in the corresponding quarter of 2013.
JK Lakshmi Cement has reduced its fuel consumption to 715,000Cal/Kg of clinker in the second quarter of 2014, compared to 731,000Cal/Kg of clinker in the corresponding quarter of 2013. It has also reported satisfactory progress in its 2.7Mt/yr capacity greenfield cement plant in Durg, Chhattisgarh, which is expected to be commissioned in the third quarter of 2014.
UAE: During the first six months of 2014, Union Cement Company (UCC) achieved a net profit of US$16.2m compared to US$5.76m during the same period of 2013, a 181% year-on-year increase. UCC's second quarter 2014 results, which ended on 30 June 2014, showed a net profit of US$11.2m compared to US$4.22m during the same period of 2013.