Displaying items by tag: Sales
Pakistan cement sales fall at start of new fiscal year
22 August 2014Pakistan: After posting cement dispatches of 3Mt/month between March and June 2014, Pakistan's cement dispatches were down to just 2.23Mt in July 2014. This compared unfavourably to dispatches of 2.6Mt in July 2013. Domestic dispatches of 1.75Mt were down by 6.5% year-on-year compared to July 2013. Cement exports dropped by a third from 0.75Mt in July 2013 to 0.5Mt in July 2014.
The poorer export performance was mainly attributed to a reduction in quantities sold to Afghanistan where against exports of 0.44Mt in July 2013 were reduced to just 0.18Mt in July 2014. According to industry experts, this trend is likely to continue in the coming months as NATO forces prepare to leave Afghanistan. The massive decline, over 58%, also indicates declining competitiveness of Paksistani cement in the global market where other regional players like Iran are making inroads.
Lafarge and Holcim announce Brazilian divestment details
05 August 2014Brazil: Lafarge and Holcim have announced further details on their proposal for comprehensive divestments in Brazil as part of their planned mega-merger to create LafargeHolcim.
As announced on 7 July 2014, and to anticipate potential competition authorities' requirements, the joint Divestment Committee has agreed to propose to Brazilian competition authority CADE a package of high-quality assets from both Holcim and Lafarge. This will include three integrated cement plants and two grinding stations that share a combined capacity of 3.6Mt/yr. Also included is one ready-mix concrete plant in the south east of the country.
These proposed divestments have been presented to CADE in the context of pre-filing negotiations and will now be subject to review and further discussion until a final decision is reached with the authority.
The divestment process will be carried out in the framework of the relevant social processes and on-going dialogue with the employee representatives' bodies and will be conducted in parallel to discussions with the competition authorities and potential buyers. The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge.
A Lafarge and Holcim joint statement said that Brazil is an important market for the future LafargeHolcim Group and that the company will remain committed to the country, serving customers from a network in cement, aggregates and ready-mix concrete.
China's building materials sector continues to slow
30 July 2014China: China's building materials sector remained sluggish as the property market showed no signs of warming, according to the National Development and Reform Commission (NDRC). Cement output rose by 3.6% year-on-year to 1.14Bnt in the first half of 2014, slowing by 6.1% points from the expansion seen during the same period of 2013. The data pointed to the continuing weakness in the property market. The average home price in 70 Chinese cities fell by 0.47% during June 2014, the second consecutive monthly drop after a 0.15% fall in May 2014.
Philippines: The Cement Manufacturers Association of the Philippines' (CeMAP) president, Ernesto Ordonez, said that total cement sales for the first half of 2014 reached 10.72Mt, up from 10.14Mt for the first six months of 2013. For the second quarter of 2014 alone, cement sales climbed by 3.2% to 5.52Mt from 5.35Mt in the comparable period of 2013. Compared to the first quarter's 5.19Mt, cement sales in the second quarter of 2014 grew by 6.19%. The increase in sales was seen amid higher demand from both the public and private sectors.
Ordonez said that there was a Department of Public Works and Highways (DPWH) budget increase, while the private sector continued to grow because of increased confidence in the government. The latest data from the Department of Budget and Management (DBM) showed that government spending for infrastructure and capital outlay posted a 24.5% increase to US$2.16bn as of April 2014, compared to US$1.74bn in 2013. The notable infrastructure disbursements were channelled mostly to on-going reconstruction and rehabilitation efforts in communities devastated by Super Typhoon Yolanda. The DBM said that the increase in disbursements is also due to the Aquino administration's stronger focus on strengthening the economy through infrastructure and capital outlay investments.
India: Aditya Birla Group's Ultratech Cement Ltd has reported net profits and sales for the first quarter of financial 2015, which was April to June 2014, with regards to both stand-alone and consolidated results. On a consolidated basis, Ultratech's first quarter net profit, after minority interest, was US$104m, whereas the company reported US$111m in the corresponding quarter of 2014. Quarterly net sales and other operating income amounted to US$1.00bn, while the same was at US$880m in the first quarter of the 2014 financial year. Other income stood at US$35.7m in the current fiscal year, up from US$25.4m in the 2014 fiscal year. Combined domestic grey cement and clinker sales volumes were 11.70Mt, up by 16% from 10.08Mt in the same period of 2014.
US: Eagle Materials has reported financial results for the first quarter of its 2015 fiscal year, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.
Operating earnings from cement for the first quarter were US$20.5m, an 8% increase from the same quarter of the 2014 fiscal year. The earnings increase was driven by record cement sales volumes and a 5% increase in average net cement sales prices. While cement demand continues to recover, extraordinary rail congestion associated with the harsh winter weather adversely impacted the timing of cement shipments during the first quarter. Cement revenues, including joint venture and intersegment revenues, totalled US$128m, up by 9% year-on-year. Cement sales volumes were 1.3Mt, up by 4% year-on-year. The average net sales price grew by 5% year-on-year.
Tunisia: Carthage Cement Company's turnover for the first six months of 2014 amounted to US$87.5m excluding VAT, up by 419% compared to the same period of 2013. Clinker sales totalled US$16.6m, while cement sales amounted to US$55.1m, including US$14.5m of exports. Sales of ready-mix concrete grew by 25% compared to the same period in 2013.
Kenya: Strong sales of cement and fertiliser have boosted Kenya's ARM Cement's pre-tax profit by 20% to US$13.68m in the first half of 2014. Total revenue jumped by 16% to US$86.6m, after cement sales rose by 10% in Kenya and by more than 33% in Tanzania. The improved sales were attributed to an improved distribution network.
"The east African regional economies are growing briskly and demand for cement, as well as the other products, are expected to grow further," said ARM. The company expects earnings to grow further in the second half of 2014, mainly due to improving margins driven by investments in its plants in Tanzania and Kenya.
ARM has invested a total of US$171m in a clinker plant in Tanga, Tanzania and a cement plant in Dar es Salaam, also in Tanzania. The plants have a combined capacity of 1.8Mt/yr. The investments have helped the earnings before interest, taxes, depreciation and amortisation (EBITDA) to hold steady at 24% in the first half of 2014, defying pressure from higher input costs, such as energy.
UK: Anglo American has announced that it plans to sell its equity in its joint venture project with Lafarge UK. Anglo American plans to use the proceeds of the sale to pay off debt.
Once it owns the entire firm, Lafarge plans to sell it to help it gain approval from competition regulators for its merger with Holcim. Lafarge and Holcim need to shed around Euro5bn in assets to persuade regulators to back the merger. Lafarge and Holcim's merger is expected to be completed in the first half of 2015.
"The sale will be subject to a number of conditions, including the completion of the Lafarge / Holcim merger, the divestment of Lafarge Tarmac being accepted as a suitable remedy, and approval of this sale transaction by the necessary regulators," said Anglo American.
Europe: Lafarge and Holcim have set up a Divestment Committee following the announcement of the planned merger on 7 April 2014, with the aim of taking forward the divestment process. The Committee has drawn up a list of proposed asset disposals to anticipate potential competition authorities' requirements. The announcement represents a major part of the total assets that the two companies aim to divest.
The two companies are proposing the following disposals:
• Austria: Lafarge's Mannersdorf cement plant;
• France: Holcim's assets in metropolitan France, except for its Altkirch cement plant and aggregates and ready-mix sites in the Haut-Rhin market; Lafarge's assets on Reunion island; except for its shareholding in Ciments de Bourbon;
• Germany: Lafarge's assets;
• Hungary: Holcim's assets;
• Romania: Lafarge's assets;
• Serbia: Holcim's assets;
• UK: Lafarge Tarmac assets with the possible exception of one cement plant.
• Canada: Holcim's assets;
• Mauritius: Holcim's assets;
• The Philippines: the associated companies of Lafarge and Holcim (Lafarge Republic Inc and Holcim Philippines Inc) are exploring the combination of their businesses other than LRI's Bulacan, Norzagaray and Iligan plants, which are considered to be divested as part of such combination;
• Brazil: Holcim and Lafarge will file soon with the Brazilian regulator (CADE) and propose a comprehensive and high quality package of divestments.
The future LafargeHolcim group will have a significant and balanced industrial base in Europe, enabling it to take advantage of the European economic recovery. Both companies will continue to consider whether divestments would be necessary where there might be overlaps or depending on regulatory requirements.
The proposed divestments are subject to review and further discussions with the regulatory authorities. The divestment process will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives' bodies and will be conducted in parallel to discussions with the competition authorities and potential buyers. The divestment process will be completed subject to the closing of the merger between Holcim and Lafarge.
Find out exactly which cement plants are affected by Holcim and Lafarge's proposed asset divestments in the Global Cement Directory 2014, available here.