05 August 2014
Lafarge and Holcim announce Brazilian divestment details 05 August 2014
Brazil: Lafarge and Holcim have announced further details on their proposal for comprehensive divestments in Brazil as part of their planned mega-merger to create LafargeHolcim.
As announced on 7 July 2014, and to anticipate potential competition authorities' requirements, the joint Divestment Committee has agreed to propose to Brazilian competition authority CADE a package of high-quality assets from both Holcim and Lafarge. This will include three integrated cement plants and two grinding stations that share a combined capacity of 3.6Mt/yr. Also included is one ready-mix concrete plant in the south east of the country.
These proposed divestments have been presented to CADE in the context of pre-filing negotiations and will now be subject to review and further discussion until a final decision is reached with the authority.
The divestment process will be carried out in the framework of the relevant social processes and on-going dialogue with the employee representatives' bodies and will be conducted in parallel to discussions with the competition authorities and potential buyers. The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge.
A Lafarge and Holcim joint statement said that Brazil is an important market for the future LafargeHolcim Group and that the company will remain committed to the country, serving customers from a network in cement, aggregates and ready-mix concrete.
Vicat profit increases by 6% in first half of 2014 05 August 2014
France: Vicat Group's financial results for the first half of 2014 show consolidated sales of Euro1.22bn, a 6.1% improvement over the same period of 2013 and 10.8% higher at constant scope and exchange rates. Vicat's cement sales were up by 17.1% at constant scope and exchange rates.
The group's consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) came to Euro208m, an increase of 3.1% in absolute terms and an increase of 8.8% at constant scope and exchange rates.
The cement sector remains Vicat's most important activity, accounting for 53.5% of income as opposed to 53.4% in the first half of 2013. Vicat highlighted that continued growth in India, West Africa and the USA, a return to growth in Egypt and favourable winter weather conditions in mainland Europe (especially France and Switzerland) helped drive its increased sales. It noted a fall in volumes in Turkey but this was partially offset by increased sales prices in that country.
"Over the first half, Vicat saw strong growth in business volumes and operating profit," states the group report. "Nearly all regions contributed to this performance, particularly Egypt which saw a return to growth, India, which saw significant progress despite continued competitive pressures and the USA, which is once again generating positive operating profits. In France, despite a promising first quarter helped by good weather conditions, performances were down slightly, due to a persistently unfavourable macroeconomic and sector conditions."
Spain: Cementos Portland Valderrivas (CPV) has seen its net loss widen to Euro31m in the first half of 2014 compared to a loss of Euro0.6m in the same period of 2013. It said that its performance was due to 'exceptional circumstances' and that without one-off items it would have improved its result by 36%.
CPV's revenue also decreased by 3.8% to Euro260m between January 2014 and June 2014. Cement sales volumes were up by 5%, of which 63% came from overseas markets, predominately the USA and Tunisia.
Drop in quarterly profit for Alexandria Portland Cement 05 August 2014
Egypt: Alexandria Portland Cement has reported a 79% year-on-year drop in its profit for the first quarter of the 2014 fiscal year, which ended on 30 June 2014. Its consolidated net profit fell from US$25.9m in the first quarter of 2013 to US$5.45m in the first quarter of 2014.
New plant for Eurocement in North Caucasus 05 August 2014
Russia: Eurocement Group will invest Euro167 m in the construction of a cement plant in the Karachay-Cherkess Republic in the North Caucasus. The new plant based on dry process technology will produce up to 4Mt/yr of clinker.