Displaying items by tag: GCW313

Germany: HeidelbergCement’s cement sales volumes have struggled to grow in the first half of 2017 following its acquisition of Italcementi. Its sales volumes rose to 60.7Mt year-on-year in the first half of 2017 from 39.9Mt in the same period in 2016. However, on a pro forma basis its sales fell by 1% with falling sales noted in its Asia-Pacific region. The group blamed its poor performance in the second quarter of 2017 on reduced working days, bad weather in the US and a late Ramadan period that reduced selling days in Indonesia.

“In the light of the difficult general conditions, we achieved a good result in the second quarter,” said Bernd Scheifele, chairman of the managing board. “We were able to almost offset the effect of higher energy costs, bad weather conditions, fewer working days, and increased competition in some emerging countries. The synergies from the Italcementi acquisition are clearly visible in the results.”

The group’s sales revenue rose by 31% to Euro8.39bn from Euro6.41bn although it only rose by 1% on a pro forma basis. Its earnings before interest and tax rose by 6% to Euro776m from Euro728m.

By region cement sales rose in all regions on both a consolidated and pro forma basis except for Asia-Pacific. Here, cement and clinker sales fell by 3.1% once the newly acquired Italcemeni assets in India and Thailand had been excluded. A particular decline was recorded in Indonesia due to the timing of Ramadan in June 2017 and reduced demand for residential housing. Elsewhere, the US market was hit by poor weather, although the housing market remained promising. In the group’s Africa-Eastern Mediterranean, the group reported issues in Egypt but strong increases in cement sales were reported as new production capacity started in Togo, Tanzania and Burkina Faso.

US: The Portland Cement Association (PCA) expects that increased demand for air travel will help drive increased cement consumption over the next 25 years. Increased population, economic growth and airport expansion are anticipated to drive the trend according to a new study by the association. Personal, business and cargo levels are all expected to rise.

“With more people traveling by air, you will need more capacity at airports – that means more cement is needed for concrete used in runways, terminals and other airport facilities,” said PCA Chief Economist and Senior Vice President Ed Sullivan.

The PCA expects cement consumption in the airports market to approach 2.4Mt/yr by 2040, with a possible high of 2.6Mt/yr, compared with 1.5Mt/yr at present. Of the estimate 65% will likely be attributed to runway replacement, 23% is projected to runway expansion projects and 11% is expected to be used for new terminal expansion.

Nigeria: Dangote Cement’s sales revenue and operating profit have risen in the first half of 2017 despite a significant drop in sales volumes in Nigeria due to the poor state of the economy. Its sales revenue rose by 41.2% year-on-year to US$1.31bn in the first half of 2017 from US$928m in the same period in 2016 with increased revenue in both Nigeria and the rest of Africa. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 53.7% to US$647m from US$421m. It attributed the rising revenue to improved margins from better efficiencies and a better fuel mix in Nigeria.

“Our revenues have continued to grow despite the lower volumes seen in Nigeria, especially because of the recent heavy rains. Our margins have improved significantly, helped by improved efficiencies and a much better fuel mix in Nigeria. We are using much more gas and increasing our use of coal mined in Nigeria, thus reducing our need for foreign currency and supporting Nigerian jobs,” said chief executive officer (CEO) Onne van der Weijde. He added that the group had seen its first sales from Sierra Leone in the first quarter and that its new plant in the Republic of Congo will be in production at the end of July 2017.

Italy: Cementir’s acquisition of Compagnie des Ciments Belges has propped up its sales revenue, volume and operating profit for the first half of 2017. Its sales revenue rose by 31.3% year-on-year to Euro631m in the first half of 2017 from Euro481m in the same period in 2016. However, on a like-for-like basis its sales revenue fell by 1.5%. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 68.5% to Euro85.1m from Euro72m but fell by 4.9% on a like-for like basis. Its sales volumes of cement rose by 34% to 6.37Mt from 4.75Mt but fell by 2.4% on a like-for-like basis. The group blamed its poor like-for-like performance on falling revenue in Turkey and Malaysia despite good results in Denmark, Norway, Sweden, China and Italy.

“Results in the first half 2017 were up thanks to the effect of the acquisitions concluded in the second half 2016, which added Euro16.6m to EBITDA, despite adverse changes in exchange rates. On a like-for-like basis, the improvement in EBITDA in Egypt, Italy, China and Norway partially compensated lower earnings in Turkey and, to a lesser extent, in Denmark and Malaysia, as well as the depreciation of foreign currencies against the Euro – mainly the Egyptian Pound and the Turkish Lira,” said Francesco Caltagirone Jr, Chairman and Chief Executive Officer (CEO).

Uganda: China National Materials Group (Sinoma) has signed an agreement with Tian Tang Group to build a US$500m cement plant at the Mbale Industrial Park. The project is part of a wider investment package to develop the site, according to the Daily Monitor newspaper. Sinoma requires assurances from the government that the site has sufficient reserves of limestone and a research trip has been scheduled for August 2017 to survey the proposed location of the plant.

India: Chettinad Cement has received approval from the Odisha State-level Single Window Clearance Authority (SLSWCA) for an investment proposal to build a 2Mt/yr cement grinding plant at the Kalinga Nagar Industrial Complex in Jajpur district. The project is budgeted at US$36m, according to the Press Trust of India.

Nepal: FLSmidth has signed a contract to build a cement grinding line for Nepal Shalimar Cement. The agreement includes the engineering, procurement and supply of equipment for a 35t/hr ordinary Portland cement grinding unit (3200 Blaine) at the company’s existing plant at Simara, Bara District.

The contract comprises a range of equipment, including an FLSmidth OK 19-3 vertical mill, bag filters, weigh feeders, truck loading machine, OK mill gear reducer and plant control systems. Completion is scheduled for the second quarter of 2018.

"The project is an example that world class energy-efficient technology can be applied even for smaller capacity grinding units. Our technological competences and a strong local presence allow us to support many emerging markets, including Nepal," said Country Head of FLSmidth India, Carsten Riisberg Lund.

US: Eagle Materials’ revenue has risen by 23% year-on-year to US$366.1m in the first quarter of its 2018 fiscal year, which runs 1 April – 30 June 2017. Its first quarter earnings before interest and income taxes increased by 22%, reflecting improved sales volumes and net sales prices across nearly all businesses and the financial results of the recently acquired cement plant in Fairborn, Ohio with related assets.

Cement revenues for the first quarter, including joint venture and intersegment revenues, came to US$183m, a rise of 26% year-on-year. The average net sales price rose by 6%. Total cement sales volumes increased by 21% to 1.5Mt. Like-for-like average net cement sales prices and sales volumes increased by 4% and 7%, respectively.

Operating earnings from Eagle Materials’ cement activities for the first quarter were a record US$43.2m, 37% higher than the same quarter of the 2017 fiscal year. The earnings improvement was driven primarily by improved average net cement sales prices and cement sales volumes and earnings from its Fairborn Business. During the quarter, its Nevada cement plant experienced reduced production in connection with the installation of certain pollution control equipment to enable the plant to burn solid-waste fuels. The ability to use solid-waste fuel will lower energy costs in the future. The reduced production negatively affected the absorption of operating costs at the cement plant during the quarter. The project is expected to be completed in the autumn of 2017.

Greece: The US market has continued to drive Titan Group’s sales in the first half of 2017. Its overall turnover rose by 6.9% year-on-year to Euro774m in the first half of 2017 from Euro724m in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18.9% to Euro142m from Euro120m. Over half of its turnover came from the US where the group noted rises in residential and infrastructure construction following economic growth and increased employment.

In the group’s other territories the situation was mixed, with the Greek construction market remaining depressed. Here cement consumption declined in the first half of 2017 following the end of several larger scale infrastructure projects during the early months of the year. Markets in Southeastern Europe delivered higher turnover but profits were hit by raising energy costs. Egypt continued to be negatively affected by the devaluation of the Egyptian Pound, although the group did manage to recapture sales volumes by increasing its fuel grinding capacity. Local competition arising from the start up of two new plants near to where its Adoçim subsidiary operates decreased sales volumes in Turkey and the construction market continued to decline in Brazil.

Mexico: Cemex’s consolidated net sales fell slightly to US$3.6bn year-on-year for the second quarter of 2017. However, on a like-for-like basis taking into account only ongoing operations and foreign exchange fluctuation, its net sales rose by 2%. This rise was attributed to positive currency variations in Mexico and the US, as well as higher sales volumes in Europe.

However, the group’s operating earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 8% to US$696m due to lower contributions from South, Central America and the Caribbean, Europe and Asia, Middle East and Africa regions, partially offset by higher contributions in Mexico and the US. Globally, Cemex sold 17.9Mt of cement in the second quarter of 2017, a 3% fall year-on-year. In the first half of the year it sold 33.9Mt of cement. Overall, Cemex’s net sales rose by 3% on a like-for-like basis to US$6.7bn in the first of 2017 and its operating EBITDA fell by 4% on a like-for-like basis to US$1.33bn.

“Our second quarter operating and financial performance was essentially in line with our expectations as of the first quarter: good results in Mexico, the US and Europe; increasing challenges in Colombia and Egypt, and to a much lesser extent the Philippines,” said Fernando A Gonzalez, chief executive officer (CEO).

By region, in Mexico Cemex’s net sales came to US$810m for the second quarter and US$1.53bn for the first half, a rise of 7% compared to the first half of 2016. In the US its net sales came to US$916m for the second quarter and US$1.73bn for the first half, a 1% fall year-on-year. In South & Central America and the Caribbean, sales brought in US$479m in the second quarter and US$958m in the first half, a fall of 6% on a like-for-like basis. In Europe the second quarter saw a 2% improvement in cement sales to US$934m, while the first half saw US$1.67bn of sales, a 3% like-for-like rise. In Asia, the Middle East and Africa, sales were US$327m in the second quarter and US$653m, a 7% like-for-like fall year-on-year.