Displaying items by tag: GCW187
HeidelbergCement reports higher fourth quarter revenue
10 February 2015Germany: HeidelbergCement's core profit rose by 1.7% in the fourth quarter of 2014 thanks to strong demand in the US and Asia. HeidelbergCement said that the weak Euro and the mild winter in Europe had also contributed to the profit increase. Operating income before depreciation (OIBD) increased to Euro625m in the three months to 31 December 2014. Revenue grew by 6.4% to Euro3.31bn. HeidelbergCement expressed optimism in view of the economic growth forecasts, but warned of geopolitical and monetary policy risks, which are difficult to estimate.
Italcementi’s consolidated revenues fell to Euro4.16bn in 2014
10 February 2015Italy: Italcementi generated consolidated revenues of Euro4.16bn in 2014, down by 1.8% year-on-year at current exchange rates and down by 0.7% annually at constant exchange rates. In 2014, cement sales grew in all geographical areas, except from west-central Europe, where they fell by 0.7%. In the fourth quarter of 2014, Italcementi registered a 2.7% rise in cement sales, mainly due to growth in North America, Asia, Spain and Greece. As a result, revenues rose by 2.3% to Euro1.04bn in the fourth quarter of 2014.
Polish cement production fell by 0.1% in January 2015
10 February 2015Poland: Cement production fell by 0.1% year-on-year to 520,900t in January 2015, while sales rose by 15.4% year-on-year to 638,500t, according to Poland's Cement Producer Association. In 2014, cement production increased by 6.8% year-on-year to 15.4Mt, with sales for the same period rising by 6.6% to 15.6Mt.
Mangalam Cement posts third quarter loss
10 February 2015India: The B K Birla Group company Mangalam Cement has posted a US$386,116 loss for the third quarter of its 2015 fiscal year due to higher finance costs. This compared to a US$75,614 net profit in the October – December 2013 quarter. Mangalam Cement's board has also approved building a new grinding plant at Aligarh, Uttar Pradesh, with a capacity of 500,000t/yr.
Mangalam Cement's total income rose to US$34.3m in the third quarter of its 2015 fiscal year, up from US$26m during the same period of 2013. Expenses also rose to US$34.2m from US$28.1m in the prior-year quarter. Mangalam Cement consumed raw materials worth US$6.59m, up from US$4.5m during the comparable quarter of 2013. Finance costs went up to US$1.71m in the October – December 2014 period, from US$371,637 in the same period of 2013.
HeidelbergCement India dips on weak third quarter
09 February 2015India: HeidelbergCement India has reported a net loss of US$1.59m in the third quarter of its 2014 - 2015 financial year, which ended on 31 December 2014. This compares to a net loss of US$1.07m in the same period of 2013. Its total income rose by 16.6% year-on-year to US$67.8m in the October - December 2014 quarter. Heidelberg Cement India said that pursuant to the sale of the Raigad plant in Maharashtra, which came into effect on 3 January 2014, the result for the quarter is not comparable with the same period of 2013.
Twiga Cement shut over dust pollution
09 February 2015Tanzania: The National Environment Management Council (NEMC) has indefinitely closed down Tanzania Portland Cement Company (TPCC, Twiga) over environmental pollution.
NEMC senior legal officer Heche Suguta said that the plant was also required to pay US$26,944 in penalties. He said that the NEMC had established that the plant was discharging a huge amount of dust, which was bad for the environment and the people surrounding the plant. "We have several times asked the plant management to work out this shortcoming, but they have not taken any steps to mitigate the problem," said Suguta.
Twiga manufactures almost half of the cement produced by the three major plants in the county and its closure is likely to spark the fear of a sharp rise in cement prices. According to 2013 statistics, Twiga produces 1.4Mt/yr of cement out of the 3Mt/yr the country can produce. The remaining 1.6Mt/yr is shared among Mbeya Cement Company and Tanga Cement Company.
Suguta said that, previously, Twiga had four chimneys to emit pollutants, but three broke down and the plant was using only one out-dated chimney, which was overwhelmed. "The plant will be allowed to resume operations only after sorting out the problem by controlling dust," said Suguta. He said that the NEMC had been receiving complaints from residents surrounding the area that the dust from the plant was causing headaches and respiratory problems. "If they disobey this order, we will arrest their managing director and other stern legal action would follow."
Twiga's managing director and area manager for East Africa, Alfonso Rodriguez, said that the dust was coming from an old plant after the filter of the new plant got a technical fault. He said that they had ordered a new filter, which might take a month to arrive in the country.
Cemex’s net loss narrows on higher operating gains
06 February 2015Mexico: Cemex's net loss narrowed in the fourth quarter of 2014 compared to the prior year as higher operating profits offset the effect on sales of weaker currencies against the US Dollar, according to Reuters.
Cemex reported a net loss of US$178m for the October - December 2014 period, compared with a loss of US$255m in the fourth quarter of 2013. Lower financial costs and higher operating profits helped to narrow the loss. Sales slipped by 1% in the quarter to US$3.8bn as weaker currencies against the US Dollar offset greater sales volume in most markets. Adjusting for exchange rates, sales were up by 5% from the fourth quarter of 2013. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 9% to US$701m in the quarter, bringing the total for the full year to US$2.7bn. Adjusting for currencies, EBIDTA was up by 16% in the quarter.
A construction recovery in Mexico led to a 5% rise in sales to US$827m, while in the US sales rose by 13% to US$923m. Sales fell in Europe and South and Central America, but rose in Asia. Globally, Cemex sold 17.2Mt of cement in the fourth quarter of 2014, up by 5% from the year-ago period.
Chief executive Fernando González said that Cemex narrowed its net loss in 2014 for a third consecutive year. Despite an earnings recovery, Cemex maintains high levels of debt that were taken on during past acquisitions. Cemex lowered its total debt in 2014 to US$16.3bn from US$17.5bn at the end of 2013. "We continue to improve our debt maturity profile and interest expense through our debt reduction of almost US$1.2bn and our refinancing activities of approximately US$5bn during the year," said González.
Cemex expects to sell up to US$1.5bn in assets over the next 12 - 18 months and that investments will reach US$800m in 2015. It expects cement sales volumes to grow by mid-single digits in 2015 and to generate US$300m in cost and spending reductions during the year. Cemex also expects to pay US$500m in debt payments in 2015.
Saudi cement sales rose by 3% in 2014
06 February 2015Saudi Arabia: Saudi Arabia's cement sales rose by 3% year-on-year to 57.2Mt in 2014 from 55.3Mt in 2013, according to statistics published by the Argaam news website.
In the fourth quarter of 2014, Saudi Arabia's cement sales reached 14.6Mt, compared to 12.7Mt in the same period of 2013 and 11.6Mt in the third quarter of 2014. In December 2014, cement sales rose by 17% year-on-year to 5.59Mt from 4.79Mt in December 2013. In December 2014, Saudi Cement Company sold 785,000t, followed by Southern Province Cement with 769,000t and Yanbu Cement with 623,000t.
Minor mineral mining, including gypsum, now under state control
06 February 2015India: The Centre of Mining has decided to put 31 minerals under the control of state governments by scaling down their status from major to minor as part of a mining policy change, according to Mines minister Narendra Singh Tomar. This allows states to decide the mining lease of the minerals, which account for about 60% of the total leased area in the country.
The decentralised minerals include gypsum, quartz, chalk and china clay. The change in policy will let states decide the rate of royalty, contribution to the district mineral foundation, procedure for grant of mineral concessions and rules. The Mines Ministry will allow states' public sector undertakings to explore minerals in areas under their jurisdiction.
"It is an important step in fulfilling the minimum government, maximum governance motto of our government," said Tomar. "This is being done to devolve more power to the states and expedite the process of mineral development in the country." States cannot lease out major minerals such as coal and iron ore without mandatory clearances from central ministries. High revenue earners, coal and iron ore, retain their positions as major minerals even after the policy shift.
The decision to broaden the list of minor minerals should drastically shorten the lease approval process because the state would be dealing with all the paperwork. Production should also increase. However, India could be treading on a minefield of environmental degradation if adequate protection measures are not taken.
Belarus: Belarusian manufacturers are expected to export 1.8Mt of cement in 2015, including 1.3Mt to be supplied to Russia's Eurocement, according to Construction minister Anatol Chorny. Belarus sold 980,000t of cement to Eurocement in 2014. Belarus' cement output is expected to total 6.1Mt in 2015, up from 5.8Mt in 2014.
"This year we have signed an exclusive contract for the supply of 1.3Mt," said Chorny. "The contract is advantageous to Belarus because 50% of the total amount shall be paid in advance and the rest shall be paid within 10 days of the delivery date. If the price of cement in the Russian market is lower than in Belarus, the Russian company will cover the losses. If the price will be higher, the difference will be equally divided." Belarus will also export cement to Russia's Kaliningrad exclave, Poland and Lithuania in 2015.
Belarus' AAT Krychawtsementnashyfer in Krychaw, Mahilyow, operated at a loss in 2013. This was caused by its old production plant, which still uses natural gas to manufacture cement. In contrast, the company's new production facility generated a profit of about Euro676,000 in 2014. To reduce the cost of cement production, Krychawtsementnashyfer installed a cement kiln fuelled by waste tyres in 2014 and plans to start using coal dust as a fuel in 2015, according to Chorny.