Displaying items by tag: Holcim

The results are in from the European cement majors and the news from the Mediterranean producers is grim. A common phrase found in most of these financial reports was the 'challenging economic environment' in western Europe. Here's what this means.

In Spain, Cemex saw its net sales in its Mediterranean region (consisting mainly of Spain) slump by 17% to Euro1.10bn. Cementos Portland Valderrivas (CPV) posted a loss of Euro83m for the first nine months of 2012, almost 10 times the loss for the same period in 2011. In July 2012 the Spanish cement association Oficement noted that demand had fallen by 60% year-on-year.

In Italy, Italcementi reported a 92% crash in net profit, to Euro17.1m, for the first nine months of 2012, and a drop in revenue of 4%, to Euro3.39bn, for the first nine months of 2012. Buzzi Unicem reported a 21% decline in sales volumes of cement and clinker, and a drop in sales of 15% to Euro430m. Vicat reported that Italian sales across all its business lines were down by 9% for the year.

By contrast, beleaguered Greek producer Titan has finally started to show a (slight) increase in its revenue. It has been able to report a second consecutive quarter where turnover has risen year-on-year. Although Titan's net profit for the same period still plummeted by 96% to Euro2m.

Elsewhere progress of a kind is being made despite the ongoing European slump, mainly due to profitable assets held outside of western Europe.

Lafarge reported that its overall sales were up by 4% to Euro4.39bn in 2012 so far. Yet its income has fallen by 44% to Euro332m and its profits are suffering from its restructuring programme. In western Europe Lafarge noted that cement volumes were down by 11% to 12.5Mt so far in 2012 and that sales were down by 9% to Euro2.43bn.

Holcim reported a 5% increase in overall net sales and a 7% increase in operating profits to Euro1.57bn. In western Europe Holcim's sales volumes were down by 4.6% (like-for-like) to 20.1Mt and sales were down by 6% to Euro3.68bn.

HeidelbergCement reported a 2.5% increase in overall sales but pre-tax profits have fallen by 5% to Euro601m. HeidelbergCement's revenue from its cement business in western and northern Europe was down by 5% to Euro1.3bn. Buzzi Unicem reported overall flat sales at Euro2.15bn but net profit rose by 50% to Euro85m. Despite this Buzzi Unicem reported a drop of 8.5% in Germany.

Vicat reported little change in sales at Euro1.73bn for the year so far. Vicat's financial reporting made it hard to tell how much was lost in Europe but French cement sales were noted as being down by 12%. Cemex's sales volumes were down by 13% in northern Europe, with net sales down by 15% to Euro3.09bn. Italcementi's cement sales volumes in central and western Europe fell by 16.8% to 12.2Mt.

Of the major producers only Lafarge failed to state the obvious in its outlook about western Europe: that sales will continue to decline in 2012 and 2013. If Titan has set the bar for how much more pain the other European producers have yet to face then conditions are likely to get worse. Get ready for even more 'challenges' in 2013.

Serbia: Claudiu Soare has been appointed the chief executive officer of Holcim Serbia. Soare, aged 42, has been a member of the Holcim Romania team since 2000 and afterwards he became project manager at Holcim Services EMEA (Europe, the Middle East and Asia) in Madrid.

Soare started with Holcim in the ready mixed concrete and aggregates division (RMX & AGG) as a Project Manager in 2000. In 2007 he became technical manager RMX & AGG and in 2011 he moved to Holcim Services EMEA, a shared service centre based in Madrid, Spain. Soare holds a Master degree in Electro-Mechanical Engineering and a MBA.

US/Switzerland: Holcim US has announced that its president and CEO, Bernard Terver, will join the executive committee of the company's parent Holcim Ltd.

As part of the 'Holcim Leadership Journey,' an initiative which streamlines and strengthens operations, Terver will also assume responsibility for the new group region of North America, comprising Holcim US, Holcim Canada, Aggregate Industries (US) and Aggregate Industries UK. Filiberto Ruiz will serve as deputy chief executive officer of Holcim (US) and Aggregate Industries US. Prior to his promotion, Ruiz was senior vice president of sales and marketing for Holcim US.

"I'm confident that these management changes will reinforce our commitment to customer excellence and to the development of our employees as they become the next generation of leaders," said Bernard Terver, president and CEO of Holcim US. "Filiberto's experience makes him an excellent choice for this new role and I am looking forward to collaborating as the company advances."

"I am honoured to have been appointed to lead US operations," said Filiberto Ruiz, deputy chief executive officer of Holcim (US) and Aggregate Industries US. "Holcim US and Aggregate Industries US are solid organisations and I look forward to continuing to build on the work that has taken place under Bernard's leadership."

Terver has been president and CEO of Holcim US since October 2008 and Aggregate Industries US since 2010. In the same year he also became area manager. He joined Holcim in 1994 when his employer CEDEST was acquired by Holcim France. In 1999, he became chief executive officer of Holcim Colombia and in 2003 was appointed area manager for the Andes nations, Central America and the Caribbean.

Ruiz began his career with the Holcim Group in 1986 as electrical supervisor with Holcim Apasco in Mexico, later becoming plant manager. In 1999 he became regional vice president for manufacturing at Holcim US. He returned to Holcim Apasco as cement operations, vice president and moved back to Holcim US in 2006 as senior vice president for manufacturing. He has been in his current role, senior vice president for sales and marketing, since 2010.

US: Holcim US has announced that Filiberto Ruiz will serve as its deputy chief executive officer of Holcim and Aggregate Industries US as part of its 'Leadership Journey.' Prior to his promotion, Ruiz was senior vice president, sales & marketing for Holcim US.

Ruiz began his career with the Holcim Group in 1986 as electrical supervisor with Holcim Apasco, Mexico, later becoming plant manager. In 1999, Filiberto became regional vice president, manufacturing for Holcim US. He returned to Holcim Apasco as cement operations, vice president, and moved back to Holcim US in 2006 as senior vice president, manufacturing. He has been in his current role, senior vice president, sales & marketing, since 2010.

Switzerland: As part of its 'Holcim Leadership Journey', the Swiss cement multinational has announced a series of personnel changes to save at least Euro1.25bn by 2014.

The group's Europe region (excluding the UK) will be consolidated and led by current member of the Holcim Executive Committee Roland Köhler. The North America and UK region will report to Bernard Terver who has been appointed member of the Holcim Executive Committee.

Corporate functions that directly contribute to the programme to strengthen customer excellence and cost leadership will be led within the newly created project management office for the 'Holcim Leadership Journey' by Urs Bleisch. He has been appointed corporate functional manager and member of the senior management of Holcim. He will be reporting directly to the CEO of Holcim, Bernard Fontana.

Member of the Holcim executive committee Urs Böhlen will leave the executive committee and act as an advisor to the CEO of Holcim until his retirement in 2013. Members of the executive committee Benoît-H. Koch and Patrick Dolberg will leave the group.

It's official: the big boys are heading to India this week.

First Lafarge head Bruno Lafont announced broad expansion plans in the subcontinent. Then a Holcim presentation emerged from earlier in 2012 projecting that the company expects India's overall construction market to take the global third position after China and the US by 2020.

With the Indian construction share set to rise from US$360bn in 2010 to US$840bn in 2020 that's one massive market share up for grabs. Throw in some interpretation from India's 2011 census and the signs are that its population could overtake China's by 2030. Sounds like an absolutely perfect opportunity for your average embattled European cement corporation!

Except that there's no such thing as a sure bet. As we covered previously, Indian cement consumption fell for the first time in 20 years in August 2011. The cause was put down to political problems holding up infrastructure in key states. In March 2012 we've had two stories that have impacted upon the local industry. First the Railway Board of India hiked the freight rates by 24%. Then the Union Budget for 2012-13 increased the excise and service tax. Clearly everybody wants a piece of the 'inevitable' bonanza. If anything impedes India's growth in the next decade there may be bargains going for cement on the export market.

Elsewhere this week we have stories on the potential cost of a proposed air pollution ruling upon two plants in the US state of Montana, more information on a revival in the Gulf Cooperation Council region and more capacity growth in Indonesia.

Switzerland: Wolfgang Reitzle has been proposed to the Annual General Meeting on 17 April 2012 for election to the board of Holcim Ltd. Reitzle, aged 63 and a German citizen, studied engineering and economics at the Technical University of Munich and holds a degree and a PhD in mechanical engineering.

From 1976 to 1999 he worked for the car manufacturer BMW, where in 1987 he was appointed as a regular member of the Executive Board, responsible for research and development. In 1999, Reitzle took over as CEO of the Premier Automotive Group and Vice President of the US car manufacturer Ford. In 2002, he joined the Executive Committee of Linde, a world-leading gases and engineering company, and became CEO in 2003.

Onne van der Weijde, currently CEO of Ambuja Cements Ltd in India, has been appointed as an area manager and a member of the senior management of Switzerland's Holcim Ltd. He took on his new role on 1 January 2012. Mr van der Weijde remains CEO of Ambuja Cements Ltd and reports directly to Holcim's executive committee member Paul Hugentobler, who is responsible for Holcim operations in South Asia, excluding the Philippines.

A Dutch citizen, Mr van der Weijde holds a Bachelor's Degree in Economics and Accounting from the University of Rotterdam in the Netherlands and an MBA from the University of Bradford in the UK.

Mr van der Weijde was CFO at Holcim Indonesia from 2001 to 2005. In 2005 he was appointed General Manager of Holcim India Ltd and in 2006 he also assumed the CFO function at ACC Ltd until October 2008. Since November 2009 he has been CEO of Ambuja Cements Ltd.