Brazil: Magnesita’s sales revenue from its Industrial Minerals business segment, which includes sales to cement producers, has fallen by 8.2% to US$74.1m from US$80.6m. However, sales volumes rose slightly to 75,200t from 74,400t. Declining sales volumes in Brazil were offset by growing volumes elsewhere in Latin America and in the Middle East, Africa and northern Asia. In addition, negative currency exchange effects hit sales revenue. The company’s Industrial Minerals business segment serves the cement, nonferrous and glass industries

Magnesita’s total refractory sales volumes fell by 6.2% year-on-year to 0.46Mt in the first half of 2016 from 0.49Mt in the same period of 2015. Its net operating revenue fell by 9.4% to US$467m from US$537m. Its earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 2% to US$77.2m from US$78.8m. The refractories producer blamed the result on steel production declines in South America and Europe and on cement production declines in Brazil.

“This decrease in volumes is partially due to our strategic decision to focus only on markets with adequate and sustainable margins. However, the outlook for the second half seems constructive in some markets, especially in the US, our largest market,” said Magnesita’s CEO, Octavio Lopes. He added that the company’s geographic diversification has never been greater and that the company is gradually reducing its exposure to any ‘specific’ market.