07 February 2019

Mexico: Cemex’s operating earnings before interest, taxation, depreciation and amortisation (EBTIDA) rose by 1% year-on-year on a like-for-like basis to US$2.56bn in 2018 from US$2.57bn in 2017. It has attributed this decrease in real terms to lower earnings from its territories outside of Mexico and the US. Its net sales rose by 5% to US$14.4bn from US$13.6bn.

“We are pleased with our 6% top-line growth during 2018, supported by higher consolidated volumes and prices in our three core products. Operating EBITDA grew by 1% on a like-to-like basis in this period,” said Fernando A Gonzalez, the chief executive officer (CEO) of Cemex. He added the company had reduced its total debt to nearly US$1bn in 2018.

By region, Cemex’s sales and earnings rose in Mexico and the US, fell in the rest of the Americas and were mixed in Europe. In the Asia, Middle East and Africa sales increased due to growth in the Philippines but earnings fell.

Canada: The Caisse de dépôt et placement du Québec (CDPQ) says it no longer wants to sell its majority stake in McInnis Cement. CDPQ’s chief executive officer (CEO) said that the pension and insurance fund is ‘convinced’ of the potential the company, according to the Journal de Quebec newspaper. The company hired consultants in 2018 to look at a potential sale.

Bolivia: Fábrica Nacional de Cemento (Fancesa) plans to target markets in La Paz and Cochabamba. It will open agencies in the locations in early 2019, according to the Correo del Sur newspaper. The cement producer operates a plant at Sucre in the south of the country.

US: President Donald Trump has signed an executive order making it the policy of the federal government to buy goods locally, including cement, for infrastructure projects. The directive aims to strengthen the ‘Buy American and Hire American’ executive order issues in 2017 by giving a preference for raw materials manufactured in the US for use in government-backed projects.

China: Data from the National Development and Reform Commission reports that the profits of local cement companies more than doubled to US$64bn in 2018 compared to 2017. Cement output grew by 3% year-on-year to 2.18Bnt, according to the Xinhua News Agency. Cement sector growth has been attributed to rising cement prices. In December 2018 the average price of cement was 10.6% higher than at the same time in 2017.

Nepal: Udayapur Cement’s production is being reduced due to power cuts. The plant has a production capacity of 800t/day of clinker but at times it has been reduced to only just 100t/day, according to the Republica newspaper. The cement producer says that the cuts have cost it over US$0.4m.

The electricity outages have also damaged machinery such as gears in cement-packaging equipment and raised general costs through repeated start-ups. The unit suffered 62 power cuts from 15 January to 2 February 2019 lasting a total of 23 hours. As many as six stoppages in a single day have been reported.

The Nepal Electricity Authority supplies electricity to the plant. It has blamed the ‘incompetence’ of officials at a substation.

Spain: LafargeHolcim España plans to spend Euro4m on upgrades to its Sagunto cement plant, according to the Las Provincias newspaper. The work will include automating the laboratory, adding a new control system for the plant, making environmental changes, improving lighting and acoustics and remodelling the unit’s white cement line.

Switzerland: LafargeHolcim is considering options, including divestments, for its businesses in the Middle East and Africa. Unnamed sources quoted by Bloomberg say that the company has held early talks with advisors about selling assets and it is also looking at an initial public offering (IPO). If it decides to sell its entire business in this region it may seek up to US$8bn. However, the sources thought that finding a buyer at this scale might prove difficult given market conditions. In 2018 the building materials producer operated 44 integrated and cement grinding plants in the region, 30 aggregates plants and 212 ready-mix concrete plants. LafargeHolcim has declined to comment on the report.

Libya: The Libyan Fund for Internal Investment and Development and the National Company for Building Material Industry have signed a partnership deal to build a 1.6Mt/yr cement plant at Nalut. The agreement follows collaboration between the Presidential Council and the Central Bank of Libya in order to build the economy, according to the Libya Observer.

Pakistan: Thatta Cement’s sales rose by 35% to US$16.7m in the half-year to 31 December 2018 from US$12.4m in the same period in 2017. Its cost of sales rose by 48% to US$12.5m from US$8.4m. Its profit for the period fell by 6.5% to US$2.2m from US$2.3m.