20 November 2018
CRH earnings driven by American markets so far in 2018 20 November 2018
Ireland: CRH’s sales rose by 3% year-on-year to Euro19.9bn in the first nine months of 2018. Its earnings before interest, taxation, deprecation and amortisation (EBITDA) increased by 2% on a like-for-like basis to Euro2.5bn. The building materials producer said that its earnings had been supported by growth in the Americas despite poor weather. It added that ‘momentum’ remained positive in Europe and demand had improved in Asia. However, its EBITDA dropped by 44% in Asia.
By region the group reported falling cement sales volumes in the UK and Ukraine. Sales volumes rose in most other European territories, with particular growth in Hungary, Germany, Poland, Serbia and Switzerland. In the US it said that its newly acquired Ash Grove Cement assets and ones in Florida had performed in line with expectations. However, sales in Canada fell due to poor weather. Sales in the Philippines rose by 3% due to rising cement sales volumes and prices following growing demand. However, here earnings were hit by higher fuel and power costs.
Supreme Court backs National Company Law Appellate Tribunal on UltraTech’s bid for Binani Cement 20 November 2018
India: The Supreme Court has upheld a decision by the National Company Law Appellate Tribunal (NCLAT) to approve a revised US$1.11bn bid for Binani Cement. The court rejected a challenge by Rajputana Properties, a subsidiary of rival bidder Dalmia Bharat group, according to the Hindu newspaper. UltraTech Cement made a direct bid for the bankrupt Binani Cement following an auction in March 2018 that was originally won by Dalmia Bharat. Dalmia Bharat disputed UltraTech Cement’s offer and the two companies have conducted legal campaigns to reinforce their respective claims.
Construction starts at Kattakurgan cement plant 20 November 2018
Uzbekistan: Construction has started on a 2.4Mt/yr cement plant in the Kattakurgan district of Samarkand. The project has an investment of US$420m, according to the Uzbekistan National News Agency. The first stage of construction will spend US$200m towards building a 1.2Mt/yr plant by 2020. This is expected to create 300 jobs. Then the plant will expand its production capacity from 2020 to 2023. The plant will produce both grey and white Ordinary Portland Cement. China’s Gansu Hengya Cement is investing in the project.
Cement packaging in Mozambique to include expiry date 20 November 2018
Mozambique: The National Inspectorate of Economic Activities (INAE) says that all cement producers must include an expiry date on cement packaging. The decision follows a study looking at the production, labelling, sale and transport of cement, according to the Mozambique News Agency. The ruling applies to both locally produced and imported cement.
INAE has requested that any cement should be sold at least three weeks prior to its expiry date. It is intended to give consumers consistent information about the date of production, the type of cement, the quality and the price. The central government agency is also hosting talks with local government to help provide warehouse space to distributors and retailers selling cement. It aims to stop the sale of cement on the street.
Golden Bay Cement hit by four-week stoppage in September 2018 20 November 2018
New Zealand: Fletcher Building says that its Golden Bay Cement plant in Auckland was forced stop its cement mill for four weeks in September 2018. It said it had insurance to cover this but that its earnings for its 2019 financial year are likely to be impacted by up to US$8m. Generally, the building materials producer reported that, until the end of October 2018, its business in New Zealand had been flat. In Australia it is facing ‘challenging’ conditions with growing input prices and a slowing residential sector.
Cemex Philippines facing legal action over landslides in Naga 20 November 2018
Philippines: Cemex Philippines is facing legal action in relation to the quarry operations of its subsidiary in Naga following a landslide that killed nearly 80 people in September 2018. It said that it had received a summons order for the class suit along with its subsidiary APO Cement, according to the BusinessWorld newspaper. The defendants also include APO Land & Quarry, the Mines and Geosciences Bureau Regional Office VII, the City Government of Naga and the Province of Cebu. The lawsuit is attempting to seek damages of up to US$80m on environmental grounds on relation to the quarry.