25 July 2019

Mexico: GCC’s results for the first half of 2019 have been negatively affected by poor weather in the US. Its net sales grew slightly by 1.3% to US$404m from US$399 in the same period in 2018. Sales fell in the US but they rose in Mexico. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 5% to US$109m from US$115m.

“While GCC’s US operations continued to be adversely impacted during the second quarter by an above average precipitation, below-average temperatures and construction labour shortages, the substantial backlog at our US operations underscores strong demand for our products. We’ve begun to reap the benefits early in the third quarter, as the US weather has finally cleared,” said Enrique Escalante, GCC’s chief executive officer (CEO). He added that the group had ‘successfully leveraged’ its new Trident plant in Montana and improved production levels at its Rapid City plant in South Dakota following a stabilisation process. Oil well cement shipments from its Chihuahua Plant to new terminal at Fort Stockton in Texas have also started.

UK: Breedon Group’s revenue grew by 18% year-on-year to Euro502m in the first half of 2019 from Euro424m in the same period in 2018. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 22.3% to Euro90.9m from Euro74.0m. Cement sales volumes increased by 11% to 1Mt and ready-mixed concrete sales fell by 6% to 1.5Mm³.

"The period began well, with benign weather in the first quarter and generally healthy demand for our products, particularly in England, Wales and the Republic of Ireland, somewhat offset by fewer large projects in Scotland. Our performance in the second quarter was adversely impacted by lower volumes in Great Britain due to a flat construction market, ongoing project delays and competitive trading conditions. However demand in Ireland remained robust,” said group chief executive Pat Ward. He added that July 2019 had started well and that the group expected a ‘strong’ second half of the year.

Zimbabwe: Kyle Wang, the general manager of Livetouch Investments, says that his company is considering plans to build a clinker plant. He said that the Chinese company was holding negotiations with South Africa’s PPC to invest up to US$50m into a joint venture, according to the Chronicle newspaper. Livetouch Investments owns the Diamond Cement grinding plant at Redcliff, which opened in 2017. It sources its clinker from PPC at present.

Senegal: Ousmane Mbaye, the Administrative and Financial Director of Dangote Cement Senegal, says that his company is not worried about potential plans by the government to cut tax exemptions to cement plants as part of its Plan for an Emerging Senegal (PES). He said that the company was ready to discuss the proposals with the authorities, according to the Le Quotidien newspaper. He also blamed distributors and a breakdown at the plant of a competitor for recent swings in the price of cement. Mbaye made the comments at a ceremony giving away tickets for a pilgrimage to Mecca and/or Rome.