05 May 2015
Cameroon struggles to meet cement demand 05 May 2015
Cameroon: Cameroon's demand for cement has risen dramatically despite the increasing volume of imports and local production, according to sources at the Ministry of Economy and Planning. According to the ministry, Cameroon's cement demand grows by 8%/yr and the country currently has a deficit of 2.5 – 3Mt. In 2014, local cement production was estimated at 1.3Mt and imports were around 1.2Mt.
Despite the government's bid to ban imports to boost domestic production, foreign producers continue to have significant market share in the country, importing to almost 1.3Mt in 2014 compared with 561,190t of cement in 2011. Cameroon's cement production is presently estimated at 3.6Mt/yr.
Italy: Buzzi Unicem's offer to buy local Sacci has expired after being rejected by the banks and creditors. Buzzi is no longer bound to any commitment. Buzzi Unicem filed a binding offer in March 2015 to acquire 99.5% of Sacci for Euro120m, planning to fund the deal with available cash and/or existing credit facilities. Sacci has been undergoing debt restructuring under Italy's bankruptcy act. The deal was subject to approval by the anti-trust authority and the banks and creditors involved in the debt restructuring of Sacci.
Cemex opens US$67 cement mill in Cebu 05 May 2015
Philippines: Cemex Philippines has recently completed a US$67.3m cement mill at its Apo cement plant in Naga, Cebu as part of its comprehensive expansion plan in the country. The mill increases the capacity of the Cemex Apo plant by 1.5Mt/yr and Cemex's production capacity in the Philippines by 40%.
"We in Cemex are proud improving the standards of life of the people, proud of producing and distributing valuable products and services and doing it in a way that has a positive impact to our communities," said Pedro Palomino, Cemex Philippines president. Aside from the cement mill in Cebu, Cemex Philippines has also finished the construction of new marine distribution terminals located in Manila, Iloilo and Davao amounting to a total of US$22.4m.
Cemex reports higher prices and volumes in 2015 05 May 2015
Mexico: Cemex has announced that in the first quarter of 2015, which ended on 31 March 2015, it achieved higher prices in local currency terms in most operations, as well as higher volumes in Mexico, the US and Asia.
Cemex's consolidated net sales reached US$3.4bn during the first quarter of 2015, an increase of 7% year-on-year on a like-for-like basis for ongoing operations and adjusting for currency fluctuations. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 6% year-on-year to US$569m. On a like-for-like basis, operating EBITDA increased by 14% in the same period. On a like-for-like basis, operating earnings before other expenses, net, in the first quarter increased by 33% to US$335m.
Cemex has reported a narrower controlling interest net loss of US$149m during the first quarter of 2015 from a loss of US$293m in the same period of 2014. Its controlling interest net income was a loss of US$149m, an improvement over a loss of US$293m in the same period of 2014.
"We are pleased with our first-quarter results," said Fernando A Gonzalez, CEO of Cemex. "Our net sales increased by 7% year-on-year, while operating EBITDA improved by 14% on a like-for-like basis. EBITDA generation was the highest since 2008, despite adverse currency fluctuations. We are encouraged by the performance of our operations in Mexico, where first-quarter cement volumes grew by 13%, reaching the highest level in six years. This quarter, on top of the sustained increase in our volumes to the industrial, commercial and formal residential sectors, we also saw growth in the infrastructure and informal residential sectors. Cement demand from the infrastructure sector grew by 6%, marking an inflection point driven by increased public-works spending, while demand from the informal residential sector grew by 11% as a result of higher consumer confidence due to improvements in employment, disposable income and remittances."
Net sales in Mexico increased by 4% in the first quarter of 2015 to US$766m, compared with US$737m in the first quarter of 2014. Operating EBITDA increased by 4% to US$262m.
Cemex's operations in the US reported net sales of US$868m in the first quarter of 2015, up by 10% from the same period in 2014. Operating EBITDA increased to US$64m in the quarter compared to US$28m in the same quarter of 2014.
In Northern Europe, Cemex's net sales for the first quarter decreased by 23% to US$701m, compared with US$912m in the first quarter of 2014. Operating EBITDA was US$36m compared to US$13m in 2014. On a like-for-like basis for the ongoing operations and adjusting for currency fluctuations, net sales remained flat and operating EBITDA increased 80% year-on-year.
First quarter net sales in the Mediterranean region were US$375m, 9% lower than the US$412m in the first quarter of 2014. Operating EBITDA decreased by 11% to US$73m for the quarter. On a like-for-like basis, for the ongoing operations and adjusting for currency fluctuations, net sales increased by 2% and operating EBITDA decreased by 3%.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$468m during the first quarter of 2015, representing a 13% decrease over the same period of 2014. Operating EBITDA decreased by 21% to US$148m in the first quarter of 2015, from US$187m in the first quarter of 2014.
Operations in Asia reported a 13% increase in net sales for the first quarter of 2015 to US$164m and operating EBITDA rose by 43% year-on-year to US$37m.
US/Canada: Lafarge and Holcim have received final approval for their proposed merger from the competition authorities in the US and Canada. All competition approvals necessary for closing the transaction have now been obtained ahead of the expected closing in July 2015.
Following the regulatory assessment in all key jurisdictions, Holcim and Lafarge can now present a final list of divestments to satisfy regulatory requirements. These divestments remain subject to the completion of the merger, including a successful public exchange offering to Lafarge's shareholders and approval by Holcim's shareholders.