01 May 2020

Thailand: Siam Cement Group (SCG) recorded a profit of US$215m in the first three months of 2020, down by 40% year-on-year from US$358m in the corresponding period of 2019. Sales were US$3.23bn, down by 6.0% from US$3.44bn.

On 30 April 2020 SCG withdrew its sales forecast for 2020 and reduced its budget for the year to US$1.85bn, down by 14% from US$2.15bn. SCG president and CEO Roongrote Rangsiyopash said, “SCG cannot give a figure for revenue this year because we don't know yet how long the COVID-19 outbreak will last and how much it will affect the economy.” Rangsiyopash said that SCG is ‘prepared to cut its investment even more’ in a worst-case scenario.

Mexico: Cemex has recorded a consolidated net income of US$47.2m in the first quarter of 2020, down by 13% year-on-year from US$54.1m in the same quarter of 2019. Net sales rose by 6% to US$260m from US$245m. Cemex said, “The world is going through an unprecedented time due to the COVID-19 pandemic. Construction activity across most of our markets is being impacted to varying degrees.”

In 2019 Cemex’s net income was US$179m, down by 69% year-on-year from US$570 in 2018. Net sales were US$13.1bn, down 3.0% from US$13.5bn in 2018.

Colombia: Cemex Latam Holdings (CLH)’s net sales in the first quarter of 2020 were US$214m, down by 11% year-on-year compared to sales of US$240m in the same period of 2019. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) throughout the quarter declined by 12% year-on-year to US$46.0m from US$52.3m. Cement volumes over the period were 11% below their first-quarter 2019 level, however prices were 3% higher. Total debt decreased by 8% year-over-year, reaching US$766m as of March 2020.

Cemex Latam Holdings CEO Jesus Gonzalez 
said, “We came into 2020 with favourable demand momentum in Colombia, Nicaragua, Guatemala and El Salvador, and a stabilising trend in Costa Rica. The coronavirus outbreak began to impact on this in March 2020. With respect to capex, US$20.0m has been postponed until 2021. Also, members of CLH’s Board and senior leadership have agreed to voluntarily waive a percentage of their second quarter salaries. Other employees voluntarily deferred a percentage of their salaries for the period. I would like to thank my colleagues for their support in these challenging times.”

Germany: Pursuant to a sales agreement dated December 2019, Voith Group acquired a majority share in ELIN Motoren on 30 April 2020. Elin Motoren CEO Wolfgang Landler said, “ The future cooperation between the two companies will allow us to offer significant added value. Together we can develop system solutions and especially technologies in digitalisation. We are looking forward to the cooperation with Voith.”