29 July 2020
UltraTech Cement shares first quarter 2021 results 29 July 2020
India: Aditya Birla subsidiary UltraTech Cement has recorded a net profit of US$122m in the three months to 30 June 2020, the first quarter of the 2021 fiscal year – down by 28% year-on-year from US$169m in the corresponding period of the 2020 fiscal year. Sales were US$975m, down by 33% from US$1.45bn.
The company said, “UltraTech has emerged stronger and well-prepared in the wake of the on-going Covid-19 pandemic. The total lockdown period from late-March 2020 to 1 May 2020 has been a huge challenge for all manufacturing industries. UltraTech has managed the crisis with a sharp focus on operational efficiencies. In the available 68 operating days during the quarter, the company kept a tight control on costs and cash flow and achieved an effective capacity utilisation of 60% across its network of 54 plants around the country.”
UltraTech said that it had already noted “better-than-expected pick-up in cement consumption in rural markets,” which it attributed to “measured steps towards economic recovery” by national and state governments.
Italy: Caltagirone Group subsidiary Cementir has recorded first-half revenues of Euro570m in the first half of 2020, down by 3.6% year-on-year from Euro591.9m in the first half of 2019. Net profit was Euro21.9m, down by 27% from Euro29.9m. The company sold 4.6Mt of cement, up by 6.3% from 4.3Mt, which it said was “mainly attributable to good performance in Turkey.”
Operating costs fell by 3.9% to Euro475m from Euro494m, which the company attributed to “cost containment measures implemented to deal with the impact of the pandemic.” The company said that, in spite of the contraction during lockdown periods in various markets, it was generally able to offset this with “a significant recovery in sales,” as in China, where increased infrastructure investments raised demand above pre-coronavirus outbreak levels following the return to cement production on 27 March 2020. The company reduced its debt by 30% to Euro281m from Euro399.
Cementir said, “With the current industrial perimeter, we expect to reach full-year consolidated revenues of approximately Euro1.2bn in 2020. Net financial debt is expected to be around Euro180m, including capital expenditure of around Euro60m. No substantial changes in the workforce are expected.”
Thailand: Siam Cement Group’s (SCG) sales revenue from its cement business fell by 6% year-on-year to US$2.82bn in the first half of 2020. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 5% to US$405m. The cement division of the group said that sales were hit by coronavirus-related lockdown measures. However, earnings benefitted from efficiency improvements and lower energy prices. Overall both sales revenue and earnings fell for the group across all business division in the reporting period.
US sales drive GCC performance so far in 2020 29 July 2020
Mexico: Grupo Cementos de Chihuahua’s (GCC) net sales rose by 5% year-on-year to US$424m in the first half of 2020 from US$404m in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 16.4% to US$127m from US$109m. Its US cement and ready-mix concrete (RMC) sales volumes increased by 3.6% and 17.2% respectively. However, Mexican cement and RMC sales volumes fell by 7.2% and 23.7% respectively. Although most of GCC’s sales came from the US, it said that Mexican sales were affected by negative currency affects and the local coronavirus-related lockdown.
"Increased concrete and cement volumes in the US demonstrate the construction industry's tailwinds and resiliency on the back of improved weather conditions. EBITDA growth, free cash flow generation and margin expansion reflected the successful execution of a comprehensive plan to reduce costs and expenses,” said Enrique Escalante, GCC's chief executive officer (CEO). He added that since the company was seeing market conditions ‘deteriorate’ and high levels of uncertainty that the company expected ‘additional challenges in the quarters ahead.’ As such it hoped for, ‘further economic stimuli from the governments, including a sizable infrastructure bill.’
China: China National Building Materials (CNBM) has shared plans for a restructuring. Under the new arrangement, its subsidiary Tianshan Cement will take control of China United Cement, North Cement, Sinoma Cement, South Cement, Southwest Cement and CNBM Investment. The reorganisation awaits internal negotiations and finalisation and regulatory approval.
Egypt: Solomon Baumgartner Aviles, the chief executive officer (CEO) of Lafarge Egypt, says that cement demand fell by 6.5% year-on-year in the first half of 2020. In an interview with the Daily News Egypt newspaper he said that coronavirus has “strongly impacted the building materials sector” with the biggest effect on the individual construction market as people decided to save their money instead. He added that a government decision to halt licences for building, expanding, upgrading, amending, or supporting construction work for private housing in larger cities had also compounded the problem. Despite this he praised the government for supporting infrastructure projects, which are operating at full capacity.
Aviles also outlined how Lafarge Egypt has developed an integrated plan on Health, Cost and Cash to tackle the coronavirus crisis. So far it has donated over 80,000 masks and gloves, made 200L of antibacterial gel available, and supported public hospitals by refurbishing 460 ventilators.
Cimerwa approved to list on Rwanda Stock Exchange 29 July 2020
Rwanda: Cimerwa says it has received approval to list its shares on the Rwanda Stock Exchange. The move is part of the strategy by the government to sell its stake in the cement producer, according to the New Times newspaper. The government and its related shareholders own a 49% stake in the subsidiary of South Africa-based PPC.
Company chairman Regis Rugemanshuro said that the company had decided to continue with its plans despite the coronavirus pandemic. The announcement has been made while Cimerwa is supplying cement to a large government tender to build new schools. The cement producer added that, “Supply to this project is progressing smoothly with the company’s production currently being robust at close to design capacity.”
Chadian president asks SONACIM to restart production 29 July 2020
Chad: Idriss Déby, the president of Chad, has asked the Société Nationale de Ciment du Tchad (SONACIM) to restart production following reports of cement shortages and price rises. He made the announcement following a meeting with representatives of the local industry, according to the Journal du Tchad. SONACIM’s plant at Baore has reportedly been not operating recently due to long-running issues since its opening in 2012.
Mondi Paper Bags acquires cement bag plants and secures Helwan Cement and InterCement supply contracts. 29 July 2020
Egypt: Austria-based Mondi Group subsidiary Mondi Paper Bags has announced its acquisition of two cement bag plants, the Helwan Cement bag plant and InterCement bag plant, with a combined capacity of 60m – 80m bags/yr. As a result, Mondi Paper Bags will now meet the bagging needs of both cement producers.
Chief executive officer (CEO) Claudio Fedalto said, “These collaborations will offer Helwan and InterCement access to our latest innovations, industry expertise and our strong plant network and customer service in the Middle East. Thanks to Mondi’s vertical integration, our partners will further benefit from our high quality kraft paper.”
Helwan Cement owner Suez Cement managing director Jose Maria Magrina said, “We are delighted to continue our relationship with a reputable and reliable global paper bags supplier like Mondi, while we can focus on our core operations, the production of grey cement and ready-mix.” InterCement subsidiary Amreyah Cement legal and administration director Paulo Dall’Aqua added, “Building sustainable partnerships is InterCement’s tagline, and it is exactly what this deal represents.”
Singapore: Jurong Port has ordered three Siwertell ship unloaders from Bruks Siwertell to handle cement imports. The port’s cement terminal already has three Siwertell ship unloaders that have been used for over 20 years. Two of these will be replaced as part of the upgrade project.
The three new ST 490-M screw-type rail-travelling unloaders will each discharge cement, fly ash and cement slag from vessels up to 50,000dwt at a continuous rated capacity of 800t/hr. Two of the new unloaders are scheduled for delivery in May 2022 and the third by the end of 2022. All will be fully assembled prior to delivery and transported by heavy-lift ship. Final commissioning and performance tests will be carried out in Jurong Port.