Displaying items by tag: GCW275

China: China National Building Material Company’s (CNBM) total operating revenue has fallen by 8.6% year-on-year to US$10.4bn in the first nine months of 2016 from US$11.4bn in the same period in 2015. Its net profit attributable to the owners of the company fell by 5% to US$106m from US$112m. No comment has been made regarding the results.

China: Cement output grew by 2.6% year-on-year to 1.77Bnt in the first nine months of 2016, according to data from the National Development and Reform Commission (NDRC). This is compared to a 4.7% drop in output that was noted for the same period in 2015 compared to 2014. Figures from the National Bureau of Statistics (NBS) show that property sector investment rose by 5.8% year-on-year in the first nine months of 2016, a faster rate than earlier in the year, supported by interest rate cuts and lower deposits.

Mexico: Cemex’s net sales have fallen by 2% year-on-year to US$10.5Bn in the first nine months of 2016 from US$10.7Bn in the same period in 2015. However, in a like-for-like basis adjusted for ongoing operations and currency fluctuations its sales rose by 5%. Its gross profit rose by 3% to US$3.65bn and its operating earnings before interest, taxation, depreciation and amortisation (EBTIDA) rose by 9% to US$2.14bn. It attributed the rise in sales on a like-for-like basis to higher prices in local currency terms and higher volumes in Mexico and its European and Asia, Middle East & Africa regions.

“During the third quarter, we continued to deliver strong underlying operational and financial results by remaining focused on the variables we can control. Our year-to-date operating EBITDA grew 17% on a like-for-like basis, with a 5% growth in sales. This was the highest year-to-date EBITDA growth in a decade,” said the group’s chief executive officer, Fernando A Gonzalez.

Overall, the cement producer saw its cement volumes rise by 1% to 50.8Mt from 50.1Mt. Its net sales on a like-for-like basis and sales volumes rose in most of its operating regions except for South, Central America and the Caribbean and Europe.

Nigeria: Dangote Cement’s pre-tax profit has fallen by 10.9% year-on-year to US$466m in the first nine months of 2016 from US$523m in the same period in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBTIDA) fell by 16.3% to US$559m from US$667m. However, sales revenue rose by 20.9% to US$1.38bn from US$1.14bn. It blamed the drop in profitability on falling prices in Nigeria, negative currency effects and on rising fuel and power costs.

“Nigeria has achieved record volume growth and our non-Nigerian operations are performing well across Africa. Our switch to coal in Nigeria will have an immediate impact on margins now that we have abandoned the use of low pour fuel oil (LPFO), improving fuel security and reducing the need for foreign currency. Furthermore, our new pricing will offset the impact on costs of the devalued Naira,” said the chief executive officer, Onne van der Weijde. He added his company’s strong performance in sales had been hit by poor economies in the countries it operates in and by heavy seasonal rains in West Africa.

The producer reported that its sales volumes of cement sold grew by 28.1% to 11.9Mt in Nigeria and by 72.9% to 6.5Mt elsewhere in Africa. Sales outside of Nigeria were bolstered by production ramp-up in Ethiopia and Zambia, new operations in Tanzania and improved sales in Ghana. Plants in the Republic of Congo and Sierra Leone are due to become operational in mid-November 2016.

Japan: Taiheiyo Cement has revised down its forecast for its net sales by 2.3% for its financial year that ends on 31 March 2017. It now expects to make net sales of US$7.67bn from US$7.85bn as originally estimated in May 2016 due to falling cement sales volumes.

US: The board of Cementos Portland Valderrivas (CPV) has approved the sale of a 55% stake in its US subsidiary Giant Cement Holding to Elementia. The deal includes a US$220m capital increase in Giant Cement with subscription rights granted to Elementia, according to SeeNews. Elementia will also extend a loan of around US$305m to Giant Cement. In addition CPV will transfer up to US$66m in loans to Giant Cement to keep its remaining stake in the American cement producer at 45%.

Algeria: A group of Algerian investors have agreed a share purchase framework to buy 100% of ASEC Algeria from ASEC Cement and ASEC Cement Djelfa Offshoren for US$60m. ASEC Cement is an Egypt-based producer and supplier of cement and other construction materials. ASEC Cement Djelfa Offshoren is a subsidiary of ASEC Cement, a subsidiary of Qalaa Holdings.

Jordan: Lafarge Jordan is set to start building a 15MW solar power unit for its Rashadiya cement plant in early 2017. The power plant, which is being built by Adenium Energy Capital, is expected to be operational by the third quarter of 2017, according to the Jordan Times newspaper. The agreement between Adenium and Lafarge was signed in late October 2016.

“This is an important milestone for the domestic industrial sector in general and the cement industry in particular as this agreement emphasises the positive role that industries can play in using alternative and renewable energy resources,” said Lafarge Jordan’s chief executive officer Amr Reda. This project will also follow the national Jordanian strategy for renewable energy launched by the Ministry of Energy and Mineral Resources in 2015.