Displaying items by tag: Price
Buzzi Unicem’s profitability drops except in Czech Republic and Russia in first half of 2022
04 August 2022Italy: Buzzi Unicem recorded a net profit of Euro88.7m in the first half of 2022, down by 58% year-on-year from Euro210m in the first half of 2021. The group said that its recurring profitability worsened across its markets, with the exception of Russia. It also noted ‘substantial stability’ in the Czech Republic. Its consolidated sales, including those of its Brazilian and Mexican businesses, were US$2.41bn, up by 18% from US$2.05bn.
The group recorded cement sales volumes of 14.2Mt, down by 4.1% from 14.8Mt. Volumes fell by 27% in Eastern Europe and by 28% in Italy, but rose by 27% in Central Europe and by 8% in the US. Excluding Russia, the producer’s fuel costs per tonne of cement rose by 8.8% year-on-year to approximately Euro8.80, and its total energy costs rose by 20% year-on-year to Euro234m.
It implemented continued price rises across all markets except Mexico during the half, with the sharpest rises recorded in Italy and Ukraine.
Japan: Sumitomo Osaka Cement has announced its next price rise from the start of October 2022. It previously raised the price of its cement-related products by 20% in April 2022. It blamed this on rising raw material, energy and logistics costs. A further price will be considered from April 2023.
India: Ramco Cements reported consolidated sales of US$225m in the first quarter of its 2023 financial year, up by 44% year-on-year. The producer recorded ‘weak’ cement prices in the quarter, during which time fuel costs rose ‘sharply.’ Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 17% to US$39.2m, while its net profit fell by 34% to US$14.4m.
Ramco Cements’ capital expenditure during the quarter totalled US$61.3m.
Austria: Refractory producer RHI Magnesita increased its consolidated sales by 33% year-on-year to Euro1.6bn in the first half of 2022 from Euro1.2bn in the first half of 2021. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 37% to Euro245m from Euro 179m. Profit before tax rose by 14% year-on-year to Euro142m from Euro125m.
Looking forward to its full-year 2022 results, RHI Magnesita forecast unchanged earnings, based on ‘strong demand’ in the year to date and its order book for the second half of the year. It said that inflation and monetary policy responses, labour and energy market tightness and on-going supply chain disruption have impacted its global growth outlook. It will rely on price rises to maintain its margins, as well as on strategic cost saving initiatives.
Chief executive officer Stefan Borgas said “In the first half of 2022 we further demonstrated the benefits of prioritising customer deliveries in an environment of continued supply chain volatility. Our investment in inventories to ensure our customers remain supplied with essential refractories has underlined the importance of supply reliability and has enabled us to simultaneously increase prices and gain market share. Following major investments in our production network, a reduction in our selling, general and administrative expenses and progress on our sales strategies, the group is in a strong position to maintain its leadership position in the refractory industry and to navigate future challenges.”
US: Eagle Materials offset higher energy and maintenance costs by raising the prices of its products in the first quarter of its 2023 financial year. This contributed to an 18% year-on-year sales rise to US$561m. The group achieved earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$184m during the quarter, up by 13% year-on-year.
President and chief executive officer Michael Haack said "Our results this quarter exceeded our expectations, as our portfolio of businesses performed well, and we executed on the opportunities available to us. Construction activity remained healthy across our markets, and we realised broad pricing gains across our portfolio again this quarter."
The producer’s cement sales rose by 5% year-on-year to US$285m. Haack said "In our heavy materials business, we implemented a second round of cement price increases in early July 2022 given the strong demand environment and our sold-out position. Looking ahead, we expect demand for cement to remain strong, with infrastructure investment increasing as federal funding from the Infrastructure Investment and Jobs Act begins in earnest this fiscal year.”
Mexico: GCC increased its sales revenue by 11% year-on-year to US$320m in the second quarter of 2022. Its US cement sales volumes rose by 6%, with a 10% rise in prices, while its Mexico cement volumes fell by 2.3%, with a 12% rise in prices. The group’s cost of sales was US$220m, 69% of total sales, compared to 67% in the second quarter of 2021.
Germany: HeidelbergCement’s sales revenue rose by 11% year-on-year to Euro9.95bn in the first half of 2022 from Euro8.94bn in the same period in 2021. Its cement and clinker sales volumes dropped by 4.8% to 58.8Mt from 61.8Mt, while its profit for the period attributable to shareholders dropped by 28% to Euro542m from Euro755m. During the reporting period, the producer reduced its net debt by 8.9% to Euro6.79bn from Euro7.45bn.
Chair Dominik von Achten said "The first half of 2022 was characterised by the strong increase in energy and raw material prices. In this persistently difficult market environment we were again able to significantly increase our revenue.” He continued, “In view of the unprecedented increase in energy prices in recent weeks, the second half of the year remains challenging. For the full year, we continue to expect a significant increase in revenue, while for the result from current operations we now anticipate a slight decline on a comparable basis compared to the strong previous year.”
Mexico: Cemex’s consolidated sales grew by 9% year-on-year to US$7.85bn in the first half 2022 from US$7.2bn in the same period in 2021. It sold 32.1Mt of cement, down by 4% from 33.6Mt. Its cement sales volumes rose by 4% in its US and by 1% in Europe, the Middle East, Africa and Asia, but fell by 10% in Mexico and by 3% in South and Central America and the Caribbean. The group says that record levels of alternative fuel usage and a lowered clinker factor helped it to reduce its total CO2 emissions by 3% year-on-year in the reporting period.
Chief executive officer Fernando González said “I am pleased that our pricing strategy is yielding results and has fully offset inflationary costs in the second quarter of 2022. With improved supply chain dynamics and continued success of our pricing and cost containment strategies, we remain confident we can recover 2021 margins.
India: UltraTech Cement has imported a 157,000t shipment of coal from Russia for US$25.8m, which it paid in Chinese Yuan. ET NOW News has reported that this is the first instance of an Indian entity using the currency in international trade. The deal has a value of US$164/t, 50% below average South African coal prices and 20% below average Australian cement prices in India. The deal reportedly signals the possible end of Indian coal prince inflation in the medium – long term.
Ghanaian government minister blames high cost of cement on exchange rates and fuel prices
29 June 2022Ghana: Alan Kyerematen, the Minister for Trade and Industry, has blamed the increasing price of cement on negative currency exchange effects and growing fuel prices. He informed the Parliament of Ghana that the cost to import clinker has risen significantly, according to the Ghana News Agency. Kyerematen also noted that the cost of freight has surged due to the coronavirus pandemic and then the war in Ukraine.