Displaying items by tag: Holcim
Third quarter cement producers roundup
13 November 2013The third quarter results are in and signs of a recovery in the construction industry are present. Generally for the European producers, volumes of cement sold in the third quarter of 2013 have improved year-on-year compared to the figures for the first nine months of 2013. Although many of these third quarter sales changes are still negative it seems like the industry has turned a corner.
Lafarge reported that cement sales fell by 4% year-on-year to 102Mt for the first nine months in 2013. In the third quarter of 2013 sales remained stable year–on-year at 36.7Mt. Holcim saw its nine month sales fall by 3% to 104Mt while its third quarter sales remained stable at 36Mt. HeidelbergCement saw its nine month sales rise by 1% to 67.7Mt while its third quarter sales rose by 4% to 25.3Mt. Italcementi saw its nine month sales fall by 6% to 32.6Mt while its third quarter sales fell by 2% to 10.8Mt.
By region some of the differences between the European-based multinational cement producers have been telling. Lafarge, for example, is still down year-on-year on cement volumes sold in North America, denting the perceived wisdom of a strong North American recovery. However, profit indicators such as earnings before interest, taxes, depreciation and amortisation (EBITDA) have risen in that region, increasingly in the third quarter. Cemex and Holcim have done better in this region.
Notably, the unstable political situation in Egypt has also impacted the balance sheets for Lafarge and Italcementi. Lafarge reported that cement sales volumes fell by 27% for the first nine months of 2013, principally due to gas shortages, and 19% for the third quarter as the company started to substitute other fuels. Similarly, Italcementi saw overall cement and clinker sales drop by 11.2% in the nine months and 14% in the third quarter.
Meanwhile in China, Anhui Conch produced 86.2Mt for the nine months, a year-on-year increase of 12.1%. Overall revenues in China seem to have risen after decreases in 2012. Anhui Conch reported that its operating revenue rose by 15% to US$6.08bn for the first nine months and US$2.20bn for the third quarter of 2013. Analysts have pinned the return to profit to building in the country's eastern and southern provinces and the effects of government-led industry consolidation. Bucking this trend though, China National Building Materials (CNBM) saw its revenue rise by 37% to US$13.5bn for the first nine months of 2013 but its profit fell by 8.1% to US$542m.
Anhui Conch, Lafarge, Holcim, CNBM, Italcementi and HeidelbergCement all feature at the top of Global Cement's list of the 'Top 75 global cement companies' to be published in the December 2013 issue of Global Cement Magazine. Ahead of final publication we want to know whether readers agree with the rankings. Download our list (registration required) and let us know your comments by 1 December 2013.
Lafarge sits on carbon permits so far in 2013 due to weak prices
07 November 2013France: Lafarge has stockpiled carbon permits in the European Union for the first nine months of 2013 due to weak prices. The multinational cement producer confirmed the situation to Reuters following the release of its third quarter results on 6 November 2013.
"Given the current price for CO2 rights there is not a strong rationale for sale compared to holding them for the future," said a Lafarge spokeswoman. Lafarge made Euro56m from selling carbon permits in the first nine months of 2012. Holcim reported in its third quarter results for 2013 that its revenue from the sale of CO2 emission certificates in the first nine months of 2013 fell by 17% year-on-year to Euro8.10m from Euro9.7m.
The EU Emissions Trading Scheme (ETS) has seen the price of carbon permits fall by over 80% to Euro4/t in August 2013 from Euro30/t in 2008. The scheme has been undermined by an oversupply of permits.
Holcim appoints Terver as head of Africa, Middle East and Indian subcontinent amidst senior management reorganisation
06 November 2013Switzerland: Bernard Terver, Member of the Holcim Executive Committee, has been appointed head of a company region encompassing Africa, Middle East and the Indian subcontinent. The appointment caps a series of changes in the company's senior management. All changes become effective on 1 January 2014.
Onne van der Weijde will remain Area Manager for India and will assist in the restructuring of Holcim's subsidiaries, ACC and Ambuja Cements. Javier de Benito will remain Area Manager for Africa and the Middle East, reporting directly to Terver. Member of the Holcim Executive Committee, Ian Thackwray will become responsible for East Asia, South East Asia, Oceania and Holcim Trading.
Daniel Bach, currently CEO of Holcim Romania, will be appointed Area Manager for South East Asia and member of senior management of Holcim. Alain Bourguignon, currently CEO of Aggregate Industries UK, will be appointed Area Manager for North America / UK and member of senior management of Holcim. He will report directly to the CEO of Holcim. Investor Relations and Risk Management will now report to CFO Thomas Aebischer.
Member of the Holcim Executive Committee Paul Hugentobler, currently responsible for South Asia and the ASEAN nations (Association of Southeast Asian Nations excluding the Philippines), will be retiring upon reaching the statutory age limit in February 2014. He will act as an advisor to the CEO of Holcim starting from 1 January 2014.
The area of responsibility of Holcim Executive Committee members Roland Köhler, in charge of Europe excluding the UK, and Andreas Leu, responsible for Latin America, will remain unchanged.
Holcim third quarter profit beats expectations
05 November 2013Switzerland: Holcim Ltd said that falling demand in key markets, including India and Brazil, weighed on third quarter sales, but the Zurich-based cement maker still posted earnings ahead of expectations as business picked up in Europe and the Americas.
In the three months to the end of September 2013 Holcim's net income rose to Euro381m from Euro319m for the same period of 2012. Revenue fell to Euro4284m from Euro4668m year-on-year, as demand in India and Mexico fell.
Holcim said that cost cutting helped boost earnings but cautioned that the volume of cement it sells will likely slip below its expectations for the whole of 2013. Holcim gets the vast majority of its sales outside of Switzerland, with its biggest market, India, generating around a third of its revenue. The company still expects to post a rise in operating profit in 2013.
Holcim Romania adds three staff to management team
30 October 2013Romaina: Holcim Romania has announced the addition of three members to its management team. Anca Alexandru is the new Ready-mixed Concrete and Aggregates Director of Holcim Romania, Mădălina Craciunescu has been appointed as Human Resources Director and Ioana Borangic is the new Communication Manager.
"We take pride in the fact that Holcim Romania, a company from the building materials industry, where most employees are men, now has an executive team formed of 50% ladies", said Daniel Bach, General Director of Holcim Romania.
Alexandru, aged 46, joined Holcim in 2002 and has held various managerial positions in the RMX segment. She succeeds Bogdan Dobre who has become the Marketing and Sales Director for Holcim Romania. She has been in post since 1 September 2013.
Craciunescu, aged 32, has held various positions with Holcim Romania since January 2005. She replaces Nicoleta Sălăjan, who has become the HR Director of Holcim Group for the Africa and Middle East Region
Borangic, aged 30, joined Holcim in 2010 as Internal Communication Specialist. Before joining Holcim Ioana gained over 10 years of experience in corporate communications in several multinational companies. Borangic succeeds Andreea Nicolae who have become the Marketing Manager for Holcim Romania.
Holcim Romania runs two cement plants, one grinding plant, 13 eco-friendly concrete stations, three aggregates stations, two special binders stations and one cement terminal.
Belgium/Germany: The European Commission has launched an investigation into the planned sale of Cemex's assets in the west of Germany to Holcim as the deal may harm competition. The commission is concerned that the planned acquisition of the German company Cemex West may reduce competition in parts of Germany and Belgium, where Cemex West is an 'actual or potential competitor' of Holcim. The commission intends to make a decision by 10 March 2014.
In August 2013 the Mexican cement producer Cemex and Swiss multinational cement maker Holcim announced plans to swap assets in Europe. On 18 October 2013 the commission announced that it would investigate Cemex's bid to buy Holcim's cement operations in Spain.
Spain: The European Commission intends to assess the proposed acquisition of Holcim's cement operations in Spain by Cemex following a request by Spanish authorities. The Commission decided that the transaction threatens to affect competition within Spain and that it is the best placed authority to assess the potential cross-border effects of the transaction. It has left a similar transaction between Cemex and Holcim in the Czech Republic to local regulators to examine.
In August 2013 the Mexican cement producer Cemex and Swiss multinational cement maker Holcim announced plans to swap assets in Europe. In Spain, Holcim and Cemex want to combine all their cement, ready-mix and aggregates operations. In the Czech Republic Cemex intends to acquire all of Holcim's assets. Other transactions are also prosed between the cement producers in Germany, France and the Netherlands.
Holcim commissions packing plant in Indonesia
11 October 2013Indonesia: PT Holcim Indonesia has commissioned a new cement packing plant and silo in Pontianak, West Kalimantan. The packing plant and 6000t silo will be located at Jalan Raya Wajok Hilir, 25km from Pontianak and it is intended to improve the company's logistic network in Kalimantan.
"With the facility we hope to reach our operational target. Our customers will easily find our product in the market in West Kalimantan," said President Director of Holcim Indonesia Eamon Ginley. Holcim Indonesia currently operates packing plants and silos in Dumai, Batam, and Celukan.
PCA stands by brighter US cement future
18 September 2013US cement consumption may have disappointed some in the first quarter of 2013 but solid growth lies ahead, according to the Portland Cement Association (PCA). Just how solid that growth will be remains open to interpretation.
PCA chief economist Ed Sullivan forecast 8% growth in cement consumption at the start of 2013. Now's its been halved to just 4%. Yet he's standing by the hint of good news ahead, upping the growth from 2014 to 9.7%.
Figures from the major US cement producers present a mixed picture. The major multinational cement producers mostly suffered from the weather in early 2013. Lafarge saw its cement sales in North America drop by 23% year-on-year for the first half of 2013 to 4.4Mt from 5.7Mt in the same period of 2012. Cemex's cement sales in the US rose by 3% but no specific figures were released. Holcim's cement sales in North America fell by 7% to 5Mt from 5.4Mt. HeidelbergCement's cement sales in the North America grew by 5% to 5.7Mt from 5.4Mt.
Of the rest, Texas Industries reported a rise in cement shipments of 29% to 2.23Mt from 1.73Mt for the six months to the 31 May 2013. Titan saw sales in the US rise by 10% to US$258m.
Preliminary United States Geological Survey data for June 2013 suggests that the increase in portland and blended cement shipments in the US slowed in the first half of 2013. In 2011 32.1Mt were shipped, in 2012 37.0Mt were shipped and in 2013 37.2Mt were shipped.
Meanwhile the construction figures US Department of Commerce mostly suggested growth but not without the odd jitter. Construction spending fell slightly in June 2013. Total construction spending adjusted seasonally fell by 0.4% to US$869bn due to a fall in non-residential construction. Since then though the July 2013 figure hit US$901bn, the highest since June 2009.
Accordingly, in his forecast Sullivan pins his hopes on the residential sector in the near term. It has seen consistent growth since October 2012. However other industry commentators, like the American Institue of Architects, have focused on poor growth in non-residential construction.
Let's hope Sullivan's got it right.
Ghassan Broummana to become managing director at A TEC
13 September 2013Austria: Ghassan Broummana has been appointed managing director of A TEC Group from 1 October 2013. As managing director Broummana will be responsible for sales and marketing within the A TEC and A TEC GRECO group.
Broummana started his career in 1987 designing and starting-up cement plants. In 1996 he joined Holcim Group Support in Switzerland where he developed and implemented various corporate initiatives. In 2004, he moved to Holcim's subsidiary in Thailand, Siam City Cement, to start up a new business unit preparing alternative fuels and raw materials from industrial and household waste.
In 2009 Broummana joined the managing committee and executive committee respectively of Holcim's subsidiaries in India, ACC and Ambuja Cements. Here he restructured Techport, the unified technical support service centre that provides expertise to both ACC and Ambuja Cements with the aim of improving the efficiency and effectiveness of over 25 integrated cement plants and grinding stations and managing all the major capital expenditure projects for both companies.
Broummana holds a Diploma in Electrical Engineering and a Diploma in Wirtschafts-Ingenieur (MBA) from the University of Dortmund. He has also completed a 'Program for Executive Development' at IMD-Lausanne and 'Advanced Management Program' at Harvard Business School, US.