28 July 2017
US: Eagle Materials’ revenue has risen by 23% year-on-year to US$366.1m in the first quarter of its 2018 fiscal year, which runs 1 April – 30 June 2017. Its first quarter earnings before interest and income taxes increased by 22%, reflecting improved sales volumes and net sales prices across nearly all businesses and the financial results of the recently acquired cement plant in Fairborn, Ohio with related assets.
Cement revenues for the first quarter, including joint venture and intersegment revenues, came to US$183m, a rise of 26% year-on-year. The average net sales price rose by 6%. Total cement sales volumes increased by 21% to 1.5Mt. Like-for-like average net cement sales prices and sales volumes increased by 4% and 7%, respectively.
Operating earnings from Eagle Materials’ cement activities for the first quarter were a record US$43.2m, 37% higher than the same quarter of the 2017 fiscal year. The earnings improvement was driven primarily by improved average net cement sales prices and cement sales volumes and earnings from its Fairborn Business. During the quarter, its Nevada cement plant experienced reduced production in connection with the installation of certain pollution control equipment to enable the plant to burn solid-waste fuels. The ability to use solid-waste fuel will lower energy costs in the future. The reduced production negatively affected the absorption of operating costs at the cement plant during the quarter. The project is expected to be completed in the autumn of 2017.
Greece: The US market has continued to drive Titan Group’s sales in the first half of 2017. Its overall turnover rose by 6.9% year-on-year to Euro774m in the first half of 2017 from Euro724m in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18.9% to Euro142m from Euro120m. Over half of its turnover came from the US where the group noted rises in residential and infrastructure construction following economic growth and increased employment.
In the group’s other territories the situation was mixed, with the Greek construction market remaining depressed. Here cement consumption declined in the first half of 2017 following the end of several larger scale infrastructure projects during the early months of the year. Markets in Southeastern Europe delivered higher turnover but profits were hit by raising energy costs. Egypt continued to be negatively affected by the devaluation of the Egyptian Pound, although the group did manage to recapture sales volumes by increasing its fuel grinding capacity. Local competition arising from the start up of two new plants near to where its Adoçim subsidiary operates decreased sales volumes in Turkey and the construction market continued to decline in Brazil.
US: Roanoke Cement, a subsidiary of Titan America, has achieved its 11th consecutive annual certification in the US Environmental Protection Agency's (EPA) Energy Star certification for its Troutville plant in Virginia. To qualify for the certification the cement producer was required to perform in the top 25% of cement plants nationwide for total energy efficiency (thermal and electrical) and meet strict environmental performance levels set by the EPA.
“Roanoke Cement Company’s plant sits in the Roanoke Valley, in the shadow of the Blue Ridge Mountains. The stakes are higher for us, surrounded by all that beauty, to perform at the pinnacle of the cement industry in energy efficiency,” said Chris Bayne, Roanoke Cement’s Energy Manager.
Germany: Schmersal Group has entered into a sales partnership with ScanMin Africa to extend its range of system solutions for the bulk goods industry. Schmersal will add spectral analysis and measurement systems for bulk goods on conveyor belts to its range of integrated system products. ScanMin Africa will distribute safety products made by Schmersal.
“We can now offer extended system solutions that contribute to our customer’s ability to produce more productively and profitably in bulk goods conveying and also the downstream processes,” said Udo Sekin, Business Development Manager Heavy Industry within the Schmersal Group.
Germany’s Schmersal Group develops and produces a range of about 25,000 different switchgear and control devices. South Africa’s ScanMin Africa specialises in the manufacture and distribution of on line process analysers.