Displaying items by tag: France
Improved fourth quarter revives flagging annual finances for Lafarge
19 February 2014France: Lafarge's financial results for 2013 have been rescued by an improved fourth quarter year-on-year. It reported a 2% decrease in sales year-on-year to Euro3.71bn for the fourth quarter of 2013 fromEuro3.81bn in 2012. Overall sales for 2013 fell by 4% to Euro15.2bn from Euro15.8bn. The French-based multinational building producer reported increasing sales on a like-for-like basis for both the final quarter and the full year. It attributed the improvement to growing sales volumes, ongoing growth in most emerging markets, the recovery in the United States and stabilisation in Europe.
"In the fourth quarter we saw much more positive operational trends, accelerating compared to the third quarter, while exchange rates continued to be adverse," said Chairman and Chief Executive Officer of Lafarge, Bruno Lafont.
Sales volumes of cement for the 2013 financial year fell by 3% year-on-year to 137Mt from 141Mt. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 9% to Euro3.10bn from Euro3.42bn.
By region, sales volumes of cement fell in North America by 12% in 2013 to 11.3Mt from 12.8Mt but the residential sector in the US recovered. In Western Europe they fell by 14% to 14Mt from 16.4Mt but the French construction market was described as 'resilient' and sales rose in the UK. In Central and Eastern Europe they fell by 6% to 12.5Mt from 13.2Mt, with particular problems in Poland and Romania. In Middle East and Africa they fell by 2% to 44.4Mt from 45.2Mt with problems noted in Egypt, Morocco and Kenya. In Latin America they fell by 4% to 8.8Mt from 9.2Mt affected by 'subdued' growth in Brazil. Although on like-for-like basis they rose by 1%. In Asia cement sales rose by 3% to 45.8Mt from 44.3Mt led by a strong market in the Philippines despite Typhoon Haiyan.
For its outlook Lafarge expects to sees cement growth in its markets of between 2 to 5% in 2014 versus 2013 with markets benefiting from recovery in the US, stabilisation in Europe and on-going growth in emerging markets.
Vicat cement sales down 4% to Euro1.11bn in 2013
05 February 2014France: The Vicat Group has reported that sales by its cement business fell by 4% year-on-year to Euro1.11bn in 2013 from Euro1.16bn in 2012. No reason was provided for this decline. The French building materials manufacturer produced 18Mt of cement in 2013. Across all business lines the company's sales remained flat at Euro2.29bn.
By region, Vicat saw cement sales fall by 7.6% year-on-year in France due to poor weather and 'challenging' economic conditions. Cement sales rose by 6.3% in the US, led by infrastructure growth in California. In Turkey cement sales rose by 16.7% and in West Africa sales fell by 4.7%.
Lafarge sits on carbon permits so far in 2013 due to weak prices
07 November 2013France: Lafarge has stockpiled carbon permits in the European Union for the first nine months of 2013 due to weak prices. The multinational cement producer confirmed the situation to Reuters following the release of its third quarter results on 6 November 2013.
"Given the current price for CO2 rights there is not a strong rationale for sale compared to holding them for the future," said a Lafarge spokeswoman. Lafarge made Euro56m from selling carbon permits in the first nine months of 2012. Holcim reported in its third quarter results for 2013 that its revenue from the sale of CO2 emission certificates in the first nine months of 2013 fell by 17% year-on-year to Euro8.10m from Euro9.7m.
The EU Emissions Trading Scheme (ETS) has seen the price of carbon permits fall by over 80% to Euro4/t in August 2013 from Euro30/t in 2008. The scheme has been undermined by an oversupply of permits.
Lafarge sales down 4% to Euro4.24bn in the third quarter
06 November 2013France: Lafarge has reported that its sales fell by 4% year-on-year to Euro4.24bn for the third quarter of 2013 from Euro4.39bn for the same period in 2012. The France-based building materials multinational blamed the results on adverse exchange rates which had a negative impact of 7% on both sales and profit indicators such as earnings before interest, taxes, depreciation and amortisation (EBITDA). Lafarge reported that its EBITDA fell by 6% year-on-year to Euro 1.01bn for the third quarter of 2013. Cement volumes remained stable at 36.7Mt.
By business region, cement sales volumes fell in North America, Western Europe, Central and Eastern Europe and Latin America for both the third quarter and the year to date. Mixed results were reported in the Middle East and Africa where cement sales volumes have fallen overall so far in 2013 but rose in the third quarter. Asia saw cement volumes rise in both periods.
Lafarge expects that the cement sector will grow at 0 - 3% in 2013 compared to 2012 due to market recovery in the US, continuing growth in most emerging markets and 'stabilisation' in Europe. The company intends to reduce its net debt to below Euro10bn in 2013, and below Euro9bn in 2014.
Vicat sales cement sales down by 2.8% to Euro855m so far in 2013
06 November 2013France: The Vicat Group has reported that its consolidated cement sales have fallen by 2.8% year-on-year to Euro855m for the first nine months of 2013 from Euro879 in 2012. No reason was given for the decline. Cement sales volumes rose by 1.4% year-on-year to 13.7Mt. Overall the company saw its total sales remain stable year-on-year at Euro1.74bn.
"The United States, Switzerland, Turkey and Kazakhstan again delivered healthy business levels while political and security factors in Egypt and competition in India and Senegal continued to weigh on the Group's performance in these regions," said Guy Sidos, CEO of Vicat.
Vicat holds sales steady in first half of 2013
07 August 2013France: The Vicat Group has reported that its sales rose by 1.7% year-on-year to Euro1.15bn in the first half of 2013 from Euro1.13bn in the same period of 2012. The group's earnings before interest, taxes, depreciation and amortisation (EBITDA) remained static year-on-year at Euro201m.
" Performance in Turkey, Kazakhstan and the United States improved substantially, making up for the tough competitive environment in India and the uncertainty that continues to prevail in Egypt. Operating performance in France also improved despite the persistently unfavourable market climate," said Vicat chief executive officer Guy Sidos.
Vicat's cement sector saw its volumes increase by 3.8% year-on-year to 9.21Mt from 8.87Mt. Operational sales increased slightly by 1.2% to Euro693m from Euro685m. EBITDA for the cement sector fell by 5.2% to Euro147m from Euro155m.
By region for its cement business, sales in France fell by 10.5% in the first half of 2013, mostly caused by a poor first quarter and a decline in export markets. Vicat declined to present specific figures for certain territories. In Switzerland its cement business saw its EBITDA fall by 6.2% and in Italy sales fell by 16%. In the US sales rose by 4.1% with strong growth from new infrastructure projects.
In Turkey sales rose by 18.9% due to volume and price rises. In India overall sales rose by 18.4% to Euro87.3m as Vicat built up its cement businesses. However competition, increased production costs and start-up costs for Vicat Sagar caused EBITDA to fall by 77.7%. In Kazakhstan overall sales rose by 42.8% to Euro38.9m. In Egypt sales fell by 11.8% to Euro47.2m despite a sharp increase in prices. In West Africa sales fell by 4.1% due to a fall in prices.
France: Ciments Français' earnings before interest, taxes, depreciation and amortisation (EBITDA) have slowed their reduction year-on-year to 5.2% in the first half of 2013. The Italcementi subsidiary reported that sales recovered in the second quarter of 2013.
In the first half of 2012 EBITDA fell by 17.1% year-on-year. In the first half of 2013 EBITDA fell year-on-year by 5.2% to Euro305.4m from Euro323.6m from the same period in 2012. Revenue for the half year decreased by 4.2% to Euro1.83bn from Euro1.91bn. By quarter, revenue fell by 7.3% in the first quarter of 2013 but only fell by 1.6% in the second quarter of 2013.
Cement sales for the first half of 2013 fell by 4.8% to 19.2Mt. By region, cement sales fell by 5.8% to 4.5Mt in Western Europe and by 11.7% in Emerging Europe, North Arica and Middle East. Sales rose by 1% in North America and by 5.3% in Asia. By country, cement sales were particularly down in Egypt, due to fuel supply issues, and in Morocco.
In its outlook Ciments Français expected that its full year results would be comparable to those in 2012. However, market trends in territories such as Egypt present significant variables in making forecasts.
Lafarge profit hit in second quarter
26 July 2013France: The French multinational cement producer Lafarge has reported that its earnings before interest, tax, depreciation and amortisation (EBITDA) fell year-on-year in the second quarter of 2013. Despite this Lafarge said that its EBITDA was 'steady' considering the adverse weather conditions, absence of carbon dioxide sales and the negative impacts of foreign exchange variations seen during the quarter.
EBITDA for the second quarter of 2013 was recorded as Euro922m, 8% down on the second quarter of 2012 when it was Euro1002m. Operating income was also down from Euro750m in the second quarter of 2012 to Euro667m in the second quarter of 2013. However, Lafarge's net income for the quarter was Euro201m, significantly up on the same period of 2012 due to exceptional items during the year-ago quarter relating to Greek assets. It reported that it generated a total of Euro260m in the first half of 2013, which Lafarge described as 'on track' with its plan.
The group sold a total of 36.5Mt of cement in the second quarter compared to 38.4Mt in the second quarter of 2012. It sold 65.2Mt/yr of cement in the first half of 2013 against 69.7Mt sold in the first half of 2012.
Lafarge's net debt at the end of June 2013 was down by Euro0.7bn compared to at the end of June 2012, reflecting the strict control of investments and working capital optimisation. With the recently announced divestment of its US gypsum operations, the group has secured Euro1.5bn since the beginning of 2012. Euro0.9bn more will come in the second half of 2013.
Bruno Lafont, Chairman and Chief Executive of Lafarge, said, "Our results in the second quarter resisted in an environment that was marked by a conjunction of unfavourable circumstances. We increased prices and performance and innovation results are in line with our 2013 Euro650m additional EBITDA target. Taking into account first-half volumes, we foresee a cement demand growth in our markets of 0-3% in 2013, which implies more positive trends in the second half."
Lafarge's sales volumes across all business lines were down in the second quarter of 2013. It suggested that this was in part due to a better-than-expected 2012 performance and poorer weather in 2013, especially in North America. A temporary fuel shortage in Egypt also put some pressure on cement volumes in that country.
Across all business units Lafarge's EBITDA in North America was Euro141m in the second quarter of 2013, down by 17% (8% on a like-for-like basis) compared to Euro170m in the same period of 2013. EBITDA for this region was flat year-on-year despite the loss of assets in the US cement industry. This represents a like-for-like improvement of 17%.
In Western Europe, Lafarge's EBITDA was Euro145m, down by 16% (14% like-for-like) compared to Euro173m in the second quarter of 2012. In the first half overall its EBITDA plummeted by 45% (38% like-for-like) from Euro255m in 2012 to Euro150m in 2013.
In Central and Eastern Europe, EBITDA was also down in the second quarter, from Euro101m in 2012 to Euro80m in 2013. This was a 21% fall in both absolute and like-for-like terms. In the first half of 2013 its performance was similarly poor, with a 48% drop in EBITDA from Euro87m in the first half of 2012 to Euro45m in the first half of 2013.
The Middle East and Africa saw an 8% decline in EBITA in absolute terms (1% like-for-like) from Euro329m in the second quarter of 2012 to Euro304m in the second quarter of 2013. Over the first half of 2013 its EBITDA for this region fell by 15% in absolute terms (10% like-for-like) from Euro646m in 2012 to Euro550m in 2013.
Latin America, however, saw a 1% improvement (7% like-for-like) in EBITA year-on-year from Euro70m in the second half of 2012 to Euro71m in the second quarter of 2013. In the first half its EBITDA for this region fell by 5% year-on-year (up 1% like-for-like) from Euro129m in 2012 to Euro122m in 2013.
Finally, Lafarge's best performing region was Asia, where it recorded EBITDA improvement of 14% year-on-year (16% like-for-like) in the second quarter to Euro181m from Euro159m. In the first half, absolute improvement in EBITDA was also 14% higher (17% like-for-like) at Euro306m compared to Euro268m in 2012.
Looking towards the future, Lafarge expects cement growth in its markets of 0-3% in 2013 compared to 2012, factoring in low volumes in the first-half. Emerging markets continue to be the main driver of demand and Lafarge says that it will benefit from its 'well-balanced geographic spread of high-quality assets.'
The group also expects higher pricing in 2013 and that cost inflation will continue, although at a lower rate than in 2012. This, it says, will benefit from positive trends in coal and petcoke prices. The group targets to deliver additional EBITDA of Euro650m in the year through its performance and innovation measures.
Lafarge announce changes to Executive Committee
10 July 2013France: Lafarge has announced changes to its Executive Committee due to start from 1 September 2013. Sonia Artinian and Peter Hoddinott will join existing committee members Eric Olsen, Guillaume Roux and Alexandra Rocca.
Sonia Artinian, currently Country CEO for Romania, is appointed as Executive Vice-President of Organization and Human Resources, taking over from Eric Olsen.
Artinian, a French national, joined Lafarge in 2008 as Senior Vice-President Organization, Learning and Development. She started her career as a strategy consultant, notably working for Cap Gemini Consulting. She is a graduate of École nationale de génie rural des eaux et forêts and of Ecole Normale Supérieure de Lyon (section biology).
Peter Hoddinott, currently Head of Energy and Strategic Sourcing at the Performance department, is appointed as Executive Vice-President of Performance, taking over from Guillaume Roux.
Hoddinott, a British national, joined Lafarge in 2001 with the acquisition of Blue Circle by Lafarge. He worked for the mining industry before joining Blue Circle in 1995, where he held several operational positions in the UK, before being appointed General Director for the Philippines in 1999. He is a graduate of Imperial College and holds a Master of Business Administration from London University.
Eric Olsen, currently Executive Vice-President Organization and Human Resources, is appointed Executive Vice-President of Operations, taking over from Jean-Carlos Angulo, who has decided to retire.
Olsen, a US national, joined Lafarge in 1999 after starting his career at Deloitte & Touche. He became Chief Financial Officer of Lafarge North America in 2004.
Olsen holds a Bachelor of Science degree in finance and accounting from the University of Colorado, and an MBA from the HEC international business school in Paris.
Alexandra Rocca, currently Senior Vice-President Group Communications, is appointed as Executive Vice-President Communications, Public Affairs and Sustainable Development.
Rocca, a French national, joined Lafarge in 2010 as Senior Vice-President Group of Communications and has been a member of the group Executive Committee since January 2012. She began her career at Printemps Group in 1986 with subsequent roles at Air Liquide Group, Galeries Lafayette and Crédit Agricole S.A. group. She is a graduate from the HEC international business school in Paris, the Institut d'Etudes Politiques in Paris and holds a BA in French literature.
Guillaume Roux, currently Executive Vice-President Performance, is appointed Executive Vice-President of Operations.
Roux, a US-French dual national, has spent his entire career with Lafarge which he joined in 1980 as an internal auditor. Subsequent roles since have included Chief Executive for Turkey in 1999, taking responsibility for Lafarge's cement operations in South-East Asia in 2002 and becoming Executive Vice President and Co-President of the Cement Division with the responsibility for the Cement business in Eastern Europe, the Middle East and Africa in 2006. In 2008 he supervised the integration of Orascom's operations with Lafarge. He is a graduate of the Institut d'Etudes Politiques in Paris.
France: On 20 June 2013 France-based cement producer Vicat announced that it had begun 10 days of trials at its Créchy cement plant in Allier with the aim of producing a new, low-CO2 type of cement known as ALPENAT®.
The trials, which aim to produce 10,000t of ALPENAT, are a first step towards full industrial production following years of research by Vicat into lower-CO2 cements. It is claimed that ALPENAT has embodied CO2 levels that are 30% lower than that of conventional cement.
While Vicat is currently keeping chemical and technical specifics out of the public domain, it reports that ALPENAT achieves its lower CO2 emissions via two methods. It reports that it has: 1. Reduced the temperature required in the kiln and; 2. Reduced the levels of limestone included in the cement raw mix, which reduces the CO2 released in the decarbonation step.
In addition to its good environmental credentials, ALPENAT is also presented by Vicat as a high-performance cement. It allows faster setting, an increase in resistance at seven and 28 days compared to OPC in the same strength class (42.5 or 52.5) and improved durability. It has already proven its strength over two years at the Vicat Montalieu cement plant, where a ramp for 100t dumper trucks has been constructed out of concrete made from ALPENAT.
Vicat says that the research that led to ALPENAT was made possible by its focus on research and development, mainly at its Isle d'Abeau laboratories.
The Vicat announcement about ALPENAT comes hot on the heels of trials conducted by Lafarge, which recently presented details of its Aether® cement clinker to the cement industry. This belite-based cement was featured in the May 2013 issue of Global Cement Magazine.