Displaying items by tag: CRH

Ireland: CRH’s first-half consolidated sales rose by 15% year-on-year in 2021 to Euro14.0bn from Euro12.2bn in the first half of 2020. Its earnings before interest, depreciation, taxation and amortisation (EBITDA) rose by 25% to Euro2.00bn from Euro1.59bn. Group profit for the period more than doubled to Euro815m from Euro406m. The divestment of its Brazilian cement business during the half contributed towards the profit growth. Cement volumes increased in all of the group’s regions. Cement, lime and cement products sales rose by 21% to Euro2.36bn from Euro1.94bn.

Chief Executive Albert Manifold said ‘‘I am pleased to report a good first half as the strength and resilience of our business model once again delivers superior performance for CRH. Our integrated and solutions-focused approach leaves us uniquely positioned for the changing needs of construction, while our continued strong cash generation provides us with the flexibility to invest in future growth opportunities for our business. Based on current trading conditions and the positive momentum that we see across our markets, we expect second-half group EBITDA to be ahead of a record prior year.’’

Romania: The Competition Council (CC) in Romania is analysing the deal involving the purchase of Euroagregate by Romcim, part of Irish building materials producer CRH. Romcim owns two cement plants in Hoghiz and Medgidia, a grinding plant in Targu-Jiu, as well as a network of quarries, cement and ballast terminals, aggregate warehouses, and precast goods production units.

UK: Archaeologists have completed the excavation of a 52-grave cemetery dated to 3rd century Roman Britain at Ireland-based CRH subsidiary Tarmac’s Knobb’s Farm quarry in Cambridgeshire. The company said that the find is remarkable for its high proportion of decapitated bodies (33%), indicating the proximity of an execution site. The graveyard is situated near a settlement on a peninsula in the Fens wetland area. The settlement itself is lost to the quarrying activities of the previous owner.

Belgium: Cembureau, the European Cement Association, has elected Isidoro Miranda as its president and Ken McKnight as its vice-president at its general assembly. Miranda, the managing director of LafargeHolcim Spain, who was previously the association’s vice-president, succeeds Raoul de Parisot in the president role. Knight is a member of the CRH executive committee.

Germany: Opterra’s Wössingen integrated cement plant was awarded gold certification status from the Concrete Sustainability Council (CSC) in late May 2021. It follows the Karsdorf plant achieving the same certification in late 2020.

Philippines: CRH and Aboitiz Equity Ventures subsidiary Republic Cement and Building Materials plans to roll out a quality control system to detect product quality across all of its cement plants by 2022. Business World News has reported that the company currently uses data science-based techniques at three sites. It says that it uses the method to predict the 28-day compressive strength without moulding and curing of a batch of cement.

Manufacturing vice president Lloyd Vicente said that with accurate predictions, “our operations can make it quick and precise adjustments to our recipe and other operating parameters, therefore reducing our CO₂ emissions.”

UK: Tarmac has renewed its partnership with the Peak District National Park until 2026. Under the partnership, the company organises volunteering and funds an engagement conservation job role at the national park in Derbyshire. Since 2016, volunteers from Tarmac’s Tunstead quarry have built dry stone walls, restored a footbridge and helped to manage ancient hay meadows. In several areas of the park, volunteers have also replaced benches.

Tunstead quarry stone and powders director Pete Butterworth said that he was ‘delighted’ about the renewal. He added, “By sponsoring the engagement role, we also enable many people to get involved in practical projects which make a significant contribution to the maintenance and improvement of this beautiful area.”

Ireland: CRH recorded a 3% like-for-like year-on-year consolidated net sales increase in the first quarter of 2021. American regional cement volumes increased by 5% and cement prices increased by 4%. Asian cement sales increased due to stronger volumes despite lower prices. Cement volumes rose in France but fell in Ireland due to the different timelines of the Covid-19 outbreak in each country in the periods under comparison. The price of cement rose in Eastern Europe. The group said that there is currently good underlying demand and continued pricing progress across key markets.

In the first quarter of 2021, the company spent US$200m on acquisitions. It says that it continues to have a ‘strong pipeline of opportunities.’ It earned US$200m from divestment of its Brazilian business. The company continues its share buyback programme with a US$300m tranche to be completed by the end of June 2021. It expects its earnings before interest, taxation, depreciation and amortisation (EBITDA) in the first half of 2021 to be ‘well ahead’ of first-half 2020 levels.

Chief executive officer Albert Manifold said “We had a positive start to the year in a seasonally quiet period for our business. He added “While near-term uncertainties remain, as we look ahead to the second half of the year we expect further normalisation in our markets as the health situation continues to improve.”

LafargeHolcim retained its ability to surprise this week with the news that it may be making preparations to leave Brazil. Local press in Minas Gerais revealed on 20 April 2021 that the company was about to try and sell its operations in the country. The building materials producer has not made a public statement yet on the matter, it may not until a deal is done and/or this could all be a great big misunderstanding. So treat the following with caution.

Firstly, LafargeHolcim deciding to sell in Brazil fits with the selective approach increasingly shown by the non-Chinese cement multinationals in recent years. It famously decided to sell up in South-East Asia from 2018 and it got as far as divesting assets in Indonesia and Malaysia. It also tried to sell in the Philippines but the local competition commission didn’t give permission for the proposed deal in the end. As Global Cement Weekly mentioned at the time this was a bold move and doing the same in Brazil seems similarly decisive now. It’s a big market to leave! CRH and HeidelbergCement have both talked openly as well about taking a value-first approach to their divestment strategies rather than trying to retain blanket coverage. However, just because a sale in Brazil by LafargeHolcim sounds right doesn’t mean it is right.

Secondly, data from the National Cement Industry Association (SNIC) shows that the Brazilian cement industry had a good year in 2020. Despite the relentlessly bad news from the coronavirus pandemic, the Brazilian government decided to keep the economy mostly open, allowing the cement industry to continue its recovery since 2018. The sector reported an 11% rise year-on-year in cement sales to 60Mt in 2020. So far in 2021 it has noted a 19% rise year-on-year to 15.3Mt in the first quarter of 2021. Yet, the association forecast slower growth in 2021 as a whole and has warned that the first quarter figures in 2021 don’t show a true picture due to a decline in sales per working day so far in 2021 despite an apparent growth in absolute figures. On the surface it’s a good time to sell cement assets in the country since the sector has been riding a recovery but the general outlook for the country is looking gloomy especially considering the ongoing scale of its coronavirus outbreak and the uncertain damage this may do to the economy as a whole.

Whether or not LafargeHolcim is actually selling up in Brazil or not it, follows the conclusion of the CRH Brazil acquisition by Buzzi Unicem’s Companhia Nacional de Cimento (CNC) joint-venture that was also announced this week after approval by the completion authority. The assets that CRH Brasil has now sold include three integrated cement plants and two grinding plants in the south-east of the country. The subsidiary sold approximately 2.8Mt of cement in 2020. If nothing else this suggests that there should be companies out there pursuing a different strategy to LafargeHolcim, CRH, HeidelbergCement and the rest who will be only too happy to build their portfolio if LafargeHolcim’s Brazilian business does go on sale.

CRH originally bought its plants in Brazil as part of a package deal when Lafarge and Holcim merged in 2015 and any potential sales by LafargeHolcim also link back to this. LafargeHolcim has spent much of the last six years working out what kind of company it wants to be. Certainly, since the current chief executive officer Jan Jenisch took charge it has had the air of a company with a mission. The Firestone Building Products acquisition earlier in 2021 is an example of this, propelling the group away from the triad of cement, concrete and aggregates as the carbon risks of heavy building materials heat up. There is something fitting perhaps that at the company’s next annual general meeting its shareholders will be asked whether they want to change the company’s name to Holcim at the group level. It’s a small thing, all market brands will remain as they are, but it may bookend the post-merger era as much as asset divestments in Indonesia and... potentially Brazil.

Brazil: Companhia Nacional de Cimento (CNC), part of Italy-based Buzzi Unicem’s 50% subsidiary BCPAR, has acquired CRH Brasil following approval by the Brazilian antitrust authority (CADE). The deal was originally agreed for US$218m although changes in the financial positions of the acquired companies changed this. Buzzi Unicem supplied CNC with US$242m to support the deal.

CRH Brasil’s assets included three integrated cement plants and two grinding plants in the south-east of the country. The company sold approximately 2.8Mt of cement in 2020.