Displaying items by tag: Cemex
Cemex shows signs of recovery in 2012 but sales fall
08 February 2013Mexico: Mexican building materials company Cemex has declared 2012 to have been a year of 'recovery' with the announcement of rising earnings before interest, taxes, depreciation and amortisation (EBITDA) and rising operating earnings. EBITDA rose by 10% to US$2.62bn from US$2.37bn. Net operating earnings before other expenses rose by 35% to US$1.31bn from US$0.97bn. However, net sales fell by 2% to US$15bn in 2012 from US$15.2bn in 2011.
"During the year we achieved the highest EBITDA generation and operating EBITDA margin since 2009 and the fourth quarter was the sixth consecutive quarter with a year-over-year EBITDA increase. We are particularly pleased with the quarterly performance of our operations in the United States and the South, Central America and Caribbean and Asia regions," said Fernando A González, Executive Vice President of Finance and Administration. Cemex said that infrastructure and residential sectors were the main drivers of demand in most of its markets.
For the fourth quarter of 2012 Cemex's performance was more muted. Net sales remained static year-on-year at US$3.71bn. EBITDA rose by 13% to US$611m from US$540m. Net operating earnings before other expenses rose by 26% to US$285m from US$227m.
Cemex produced 65.8Mt of cement in 2012, a 1% decrease from 66.8Mt in 2011. This drop was more pronounced in the fourth quarter. Cemex produced 15.8Mt in the fourth quarter of 2012, a 3% decrease from 16.3Mt in 2011.
By region, net sales in Mexico decreased by 3% to US$3.38bn in 2012 from US$3.47bn in 2011. In the fourth quarter sales increased by 2% year-on-year. In the US sales increased by 17% to US$3.06bn from US$2.62bn. In Northern Europe sales fell by 13% to US$4.1bn from US$4.73bn, led by a 15% decline in Poland. In Cemex's Mediterranean region sales fell by 15% to US$1.46bn form US$1.72bn, led by a 40% decline in Spain. Operations in South, Central America and the Caribbean reported an increase in sales of 20% to US$2.09bn from US$1.75bn. In Asia sales rose by 7% to US$542m from US$505m, with the Philippines performing well with 12% growth.
Cemex announces second round of job cuts in Spain
30 January 2013Spain: Mexican cement company Cemex is currently preparing a second downsizing plan for its workforce in Spain. Over the 30 days to 28 February 2012 the company is expected to negotiate with the trade unions the dismissal of up to 156 employees out of a total of 1077 employees in Spain.
The move is in line with the flagging demand as well as with Cemex's strategic plan to adapt its production capacity. At the end of 2012 Cemex cut 290 jobs in Spain in a first round of job-cuts.
Sales strong through first 11 months in Peru
19 December 2012Peru: Cement production in Peru reached 8.98Mt in the first 11 months of 2012, growing by 16.7% compared to the same period in 2011, according to figures from the national cement association Asocem. Production in October 2012 alone reached a record 926,623t.
Cement shipments within the country reached 8.76Mt to the end of November 2012, growing by 16.6% compared to the same period of 2012. Meanwhile, cement exports in the January-November 2012 period grew by 200% year-on-year to 173,198t.
Cement producers active in the country are making the most of the current demand in the market. Cemento Andino and Cementos Lima agreed to merge in July 2012, giving rise to the largest player in the local market, with an installed capacity of some 7.6Mt/yr of cement. At the same time, Mexican cement producer Cemex is building a new US$230m, 1Mt/yr production facility in the country.
Grim and grimmer: European cement production so far in 2012
14 November 2012The results are in from the European cement majors and the news from the Mediterranean producers is grim. A common phrase found in most of these financial reports was the 'challenging economic environment' in western Europe. Here's what this means.
In Spain, Cemex saw its net sales in its Mediterranean region (consisting mainly of Spain) slump by 17% to Euro1.10bn. Cementos Portland Valderrivas (CPV) posted a loss of Euro83m for the first nine months of 2012, almost 10 times the loss for the same period in 2011. In July 2012 the Spanish cement association Oficement noted that demand had fallen by 60% year-on-year.
In Italy, Italcementi reported a 92% crash in net profit, to Euro17.1m, for the first nine months of 2012, and a drop in revenue of 4%, to Euro3.39bn, for the first nine months of 2012. Buzzi Unicem reported a 21% decline in sales volumes of cement and clinker, and a drop in sales of 15% to Euro430m. Vicat reported that Italian sales across all its business lines were down by 9% for the year.
By contrast, beleaguered Greek producer Titan has finally started to show a (slight) increase in its revenue. It has been able to report a second consecutive quarter where turnover has risen year-on-year. Although Titan's net profit for the same period still plummeted by 96% to Euro2m.
Elsewhere progress of a kind is being made despite the ongoing European slump, mainly due to profitable assets held outside of western Europe.
Lafarge reported that its overall sales were up by 4% to Euro4.39bn in 2012 so far. Yet its income has fallen by 44% to Euro332m and its profits are suffering from its restructuring programme. In western Europe Lafarge noted that cement volumes were down by 11% to 12.5Mt so far in 2012 and that sales were down by 9% to Euro2.43bn.
Holcim reported a 5% increase in overall net sales and a 7% increase in operating profits to Euro1.57bn. In western Europe Holcim's sales volumes were down by 4.6% (like-for-like) to 20.1Mt and sales were down by 6% to Euro3.68bn.
HeidelbergCement reported a 2.5% increase in overall sales but pre-tax profits have fallen by 5% to Euro601m. HeidelbergCement's revenue from its cement business in western and northern Europe was down by 5% to Euro1.3bn. Buzzi Unicem reported overall flat sales at Euro2.15bn but net profit rose by 50% to Euro85m. Despite this Buzzi Unicem reported a drop of 8.5% in Germany.
Vicat reported little change in sales at Euro1.73bn for the year so far. Vicat's financial reporting made it hard to tell how much was lost in Europe but French cement sales were noted as being down by 12%. Cemex's sales volumes were down by 13% in northern Europe, with net sales down by 15% to Euro3.09bn. Italcementi's cement sales volumes in central and western Europe fell by 16.8% to 12.2Mt.
Of the major producers only Lafarge failed to state the obvious in its outlook about western Europe: that sales will continue to decline in 2012 and 2013. If Titan has set the bar for how much more pain the other European producers have yet to face then conditions are likely to get worse. Get ready for even more 'challenges' in 2013.
Cemex recognised for carbon emissions reduction
02 November 2012Mexico: Cemex has been named by the Carbon Disclosure Project (CDP) as the best Latin American company in terms of climate change data disclosure and one of the top ten in overall carbon emissions performance.
The rankings were announced during the launching of the CDP's latest report, CDP Investor Latin America 2012, which comprises data on the emissions of greenhouse gases from 32 major companies in Argentina, Brazil, Chile, Mexico, and Peru. The CDP is a UK-based independent non-governmental organization that possesses the world's largest database of self reported climate change data.
According to data released by Cemex, the company achieved a 22.7% reduction on CO2 net emissions per ton of cement produced in 2011 relative to its 1990 baseline. Cemex's rate of alternative fuel use rose to approximately 25% in 2011, an improvement from its rate of 20.3% in 2010. Cemex is on track to reach its 2015 target of 35% alternative fuels substitution rate.
Cemex España to cut 390 jobs
23 October 2012Spain: Cemex España, the Spanish subsidiary of Mexican cement company Cemex, plans to cut around 390 jobs. This represents 22% of its 1740 current employees. The company has attributed its decision to flagging cement consumption in Spain, amid continued ecomonic turmoil, austerity measures and unemployment.
Diverging fortunes in Europe and the Americas
17 October 2012News from Mexico and the US over the past week confirms the contrasting fortunes of the cement industry in the 'Old World' and the 'New World,' of Europe and North America. First, Cemex reported a significantly reduced loss of US$203m in its third quarter, compared with a loss of US$730m in 2011. However, the firm's European units again faired worse than other regions.
The European problem is not limited to Cemex, but while much of the continent has seen a poor 2012 so far, North America appears to be in the midst of a construction renaissance. HeidelbergCement estimates US cement sales growth of 8-11% in 2012. In Mexico, a strong and growing industry, it has also been announced that the Mexican billionaire Carlos Slim had partly financed a new US$300m plant in Mexico, due to go into production early in 2013.
In light of this apparent upward trend in North America, it is surprising that France's Lafarge has agreed to sell two more of its US cement plants, this time to Eagle Materials. If the Eagle deal is approved, it will represent (along with the May 2011 sale of Lafarge's Roberta and Harleyville plants to Cementos Argos) a continued and substantial reduction in Lafarge's presence in the US. In under 18 months, Lafarge will have offloaded four plants, taking its total from 12 to eight.
Lafarge's decision to sell to Eagle seems like an attempt to meet its own debt-reduction schedule. Yet to do this it may be losing important territory in North America. This can't have been an easy decision.
Cemex loss reduced to US$203m in Q3 but over 1000 jobs to go
17 October 2012Mexico: Cemex has reduced its year-on-year net loss in the third quarter of 2012 due to steady sales and an increase in operating cash flow. However, the Mexican cement conglomerate has confirmed that over 1000 jobs will leave the company by December 2013.
The Mexican conglomerate reported a net loss for the quarter of US$203m, compared with a loss of US$730m in the third quarter of 2011. It noted a 13% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$730m from US$671m in the same quarter in 2011. Sales fell by 2% in dollar terms to US$3.9bn as a result of weaker currencies but rose by 2% from 2011 when adjusted for currency fluctuations. Consolidated cement sales volumes fell by 2% to 17.1Mt. Operating profit rose by 35% to US$410m.
"An improvement in pricing and volume in several of our regions as well as the continued success of our transformation effort has led to the highest operating EBITDA margin in three years," said Fernando Gonzalez, executive vice president of finance and administration.
Cemex generated EBITDA of US$27m in the US, a second consecutive quarter of positive cash flow in that market as sales rose by 12% from 2011 to US$826m. In Mexico, sales were 2% higher at US$875m, and EBITDA rose by 9% to US$313m. Sales rose in Central and South America and in Asia, although they were lower in both northern and southern Europe.
Gonzalez also said that IBM will be hiring around 450 Cemex workers, or 1% of its global staff, in a previously announced outsourcing deal. Another 675 people, or 1.5% of its workforce, will be made redundant. The staff downsizing is expected to be completed by December of 2013.
Cemex expects improved Q3
05 October 2012Mexico: Based on results for the months of July and August 2012 and preliminary estimates for the month of September 2012, the Mexican cement giant Cemex currently expects to report an improvement in its like-for-like net sales and earnings before tax, depreciation and amortisation (EBITDA) its 2012 third quarter results, on a consolidated basis.
Cemex expects that net sales for the quarter will decline by approximately 2%, although net sales on a like-to-like basis, which considers currency fluctuations, are expected to grow by approximately 3%. It expects its operating EBITDA to grow by about 9% and operating EBITDA, on a like-to-like basis, is expected to grow by approximately 13%.
The expected improvements are broadly in line with improvements seen in the first half of 2012 compared to the first half of 2011.
UK/Lativa: Recycling and resource management company, SITA UK, has signed a three-year contract to supply 180,000t of solid recovered fuel (SRF) to Cemex in Latvia. The fuel will be produced by processing residual commercial waste in a purpose-built facility at Ridham Docks in Kent. Once processed, the SRF material will be used as a fossil-fuel replacement at a Cemex plant in Broceni, southern Latvia.
"We have invested over Euro7.53m developing a new processing facility to produce and bale SRF at Ridham. This brand new, purpose-built facility was commissioned in August 2012 and we are sending our first shipment to Latvia in September 2012," said Andy Hill, head of organics and alternative fuels, at SITA UK.
SITA UK uses residual commercial waste, which has a higher calorific value and lower moisture content than municipal waste. Its facility in Ridham can process up to 50t/hr. The company has a one year trans-frontier shipment permit to export the SRF to Cemex in Latvia.
Earlier in April 2012, SITA UK and Cemex announced their intention to develop two waste recycling plants to produce alternative fuel for Cemex's Rugby plant in Warwickshire. SITA UK, a subsidiary of Suez Environment, is a recycling and resource management company employing over 6000 staff with a turnover in excess of Euro879m/yr.