Displaying items by tag: Results
Loma Negra’s fortunes on the rise
10 August 2018Argentina: Loma Negra has announced its results for the three and six-month periods that ended on 30 June 2018. Its net revenue rose by 37.2% year-on-year to US$202m, mainly driven by growth in its core cement, masonry and lime businesses in Argentina. Argentine cement, masonry and lime net revenues rose by 33.4%, despite relatively flat sales volumes.
Consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 26.9% year-on-year to US$49m, mainly driven by the 36.6% increase in adjusted EBITDA from Argentina. Cement, masonry and lime sales in Argentina came to US$42m.
Commenting on the financial and operating performance for the second quarter of 2018, Sergio Fairman, Loma Negra’s Chief Executive Officer, said, "Our core business, cement in Argentina, continued to deliver a solid performance, posting both revenue growth and EBITDA margin expansion despite the current challenging macroeconomic environment in the country. This was achieved despite relatively flat volumes year-on-year, as we continue with our strategy of balancing profitability and market position. Sustained growth in concrete volume demand, by contrast, was supported by ongoing implementation of public infrastructure projects in our key markets."
"Looking ahead, we remain cautiously optimistic with the cement demand outlook in Argentina. Despite the potential impact of an adverse macro environment in the second half of the year and, given current market conditions, we believe the industry could reach similar record volumes (to those) achieved last year."
Akmenes improves but still makes a loss
10 August 2018Lithuania: Akmenes Cementas, Lithuania’s only cement producer, has announced that it expects improved cement sales in 2018 compared to 2017 and hopes to halve its annual loss.
The company suffered a net loss of Euro5.5m in 107, 21.7% lower than a Euro7.0m loss in 2016. Turnover in 2017 grew by 11% to Euro56.7m. The company sold 1.04Mt of cement, 4% more than in 2016.
In 2017 Akmenes sold 58% of its produce to the local market. It exported 35% to other EU countries and 7% to Belarus. The company hopes to increase cement sales and to halve its losses.
Eagle Cement’s income up as costs mount
09 August 2018Philippines: Eagle Cement’s income rose in the first half of 2018, while its input costs also increased due to rising fuel prices and negative currency effects. Its net income grew by 4.6% year-on-year to US$43.8m from US$41.9m in the same period in 2017. Its net sales rose by 9.8% to US$155m from US$141m. The company operates an integrated plant at Barangay Akle, San Ildefonso in Bulacan and a cement grinding plant at Limay in Bataan.
Monarch Cement’s sales fall so far in 2018
09 August 2018US: Monarch Cement’s net sales fell by 3% year-on-year to US$74.3m in the first half of 2018 from US$76.8m in the same period in 2017. Its net income decreased by 42% to US$4.8m from US$8.23m. The building materials company operates a cement plant at Humboldt, Kansas and a terminal at Des Moines, Iowa.
Germany: ThyssenKrupp’s overall performance has suffered from the poor results of its Industrial Solutions division. In the first nine months of its financial year, which ended on 30 June 2018, the order intake of its Industrial Solutions division, which includes building cement plants, fell by 32% year-on-year to Euro2.82bn from Euro4.15bn. Its net sales decreased by 10% to Euro3.59bn from Euro4bn. Overall, the group’s order intake and net sales also fell slightly. However, most divisions and overall performance improved in the third quarter.
“We see a mixed picture. The bottom line is, that we are not satisfied with the current results”, said Guido Kerkhoff, chairman of the executive board of ThyssenKrupp. “There’s no point in sugar-coating it. Notably the cash flow is unsatisfactory, and that is not a situation which can be sustained long term. We have to improve significantly across all our businesses. That is what we are now working hard to deliver.”
With respect to the cement sector the group said that had received small and medium-size orders for plants and machines in Mexico, West Africa and India. Despite this it described the current market as beset by production overcapacity.
FLSmidth reports cement market unchanged so far in 2018
08 August 2018Denmark: Equipment manufcaturer FLSmidth says that the cement market has remained ‘unchanged’ so far in 2018. It described the market for new cement capacity as ‘subdued’ but that opportunities for small and medium projects were available. In addition, the second quarter of 2018 showed a number of single equipment and upgrade project orders which the company has marked as a strategy area.
Order intake for its cement division fell by 42% year-on-year to Euro215m from Euro368m. However, revenue rose by 2% to Euro272m. Overall, the group’s order intake fell slightly to Euro1.35bn but revenue rose by 18% to Euro1.2bn.
"We saw the highest order intake in the Minerals division for several years, which shows that miners are starting to put action behind their investment plans. Most activity is related to single equipment and brownfield expansion. We benefit from our business model of full life-cycle offerings which enables us to support customers in their pursuit of productivity enhancements", said group chief executive officer (CEO) Thomas Schulz.
France: Vicat’s earnings rose in the first half of 2018 due to good performance in the US, Turkey, France and Kazakhstan. Its earnings before interest and taxation (EBIT) increased by 21.3% year-on-year to Euro104m from Euro86m. Its sales revenue rose by 2.7% to Euro1.28bn from Euro1.25bn. The company’s cement production increased by 5.3% to 11.4Mt from 10.8Mt.
“Excluding currency movements, which have a particularly large negative impact this year, the croup achieved notable progress in Turkey, the US, France and Kazakhstan,” said the group’s chairman and chief executive officer (CEO) Guy Sidos. He added that the group also benefitted from the start of work on new infrastructure projects in India.
However, the group reported a 21.9% fall in earnings before interest, taxation, depreciation and amortisation (EBITDA) to Euro22.7m in India due to falling prices and mounting energy costs. In West Africa EBITDA declined by 14.5% to Euro22.2m due to falling prices and rising production costs. In Europe EBITDA fell by 16.9% to Euro35m due to contacting sales in Switzerland as well as issues Italy. Finally, EBITDA fell to a loss of Euro3.9m in Egypt due to falling sales in the wake of military intervention in the Sinai region.
Italy: Buzzi Unicem’s sales revenue and earnings have suffered from negative currency effects in the first half of 2018. Its net sales fell by 1.2% year-on-year to Euro1.34bn from Euro1.35bn and its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 5.7% to Euro227m from Euro241m. However, its cement sales volumes grew by 3.8% to 12.9Mt from 12.5Mt. By region the cement producer reported that its net sales rose in Italy, Germany, the Czech Republic, Slovakia, Poland and the US. Net sales fell in Luxembourg, Netherlands, Ukraine and Mexico.
US: Summit Materials’ mid-year results have been negatively affected by poor cement sales and lower aggregate sales from its Houston operations. Revenue rose by 15% year-on-year to US$717m in the first half of 2018 from US$623m in the same period in 2017. However, its sales volumes of cement fell by 10% to 0.97Mt from 1.08Mt. The company’s net loss rose to US$19m from US$3m.
“Organic sales volumes in our cement segment were impacted by a combination of high precipitation levels during April and May, together with competitive pressures in the markets we serve,” said chief executive officer (CEO) Tom Hill.
The building materials producer operates an integrated cement plant under the Continental Cement subsidiary at Hannibal in Missouri.
Germany: ThyssenKrupp has decreased its earnings forecast for its 2017 – 2018 financial year due to the poor performance of its Industrial Solutions division. The division is expected to report a negative adjusted earnings before interest and taxation (EBIT) of Euro200m in the third quarter of the year due to higher expected total costs, particularly for a cement plant in Saudi Arabia and two other industrial projects. The group said that the number of major projects in the cement and fertiliser sector had decreased ‘considerably,’ partly due to the production overcapacity in the cement market.
"It is important to me to call it what it is. The results of our analysis at Industrial Solutions are anything but satisfying. The structure of plant construction must be adjusted to the changed market conditions in order to achieve a turnaround and finally become competitive again. We must act swiftly here," said Guido Kerkhoff, chairman of the executive board of ThyssenKupp. The group has proposed focusing its Industrial Solutions division on small and medium-sized projects and targeting plant construction on the higher-margin service business.
In mid-2017 the group announced plans to reorganised its Industrial Solutions division, including the decision to cut 1500 jobs in operational areas.