Displaying items by tag: HeidelbergCement

Germany: HeidelbergCement started the new year better than ever before, according to chief executive officer (CEO) Dominik von Achten. He reported that this had been mainly due to good weather before the onset of the coronavirus outbreak. Von Achten warned that the situation had already changed beyond recognition since mid-February 2020 for the multinational.

He said that the coronavirus outbreak had not only caused plants to be closed, either by enforcement or due to a lack of demand, but because migrant workers are unable to travel to construction sites. For example, workers from Eastern Europe are increasingly lacking in Western Europe. In Indonesia, a market that is important for HeidelbergCement, the lack of Chinese construction workers is stark, as they remain confined to their home country.

According to Von Achten, HeidelbergCement is now paying particular attention to its costs, has deferred all unnecessary investments and has considerable liquidity leeway. He added that the group is likely to benefit significantly from lower fuel costs as conditions improve over the course of 2020. HeidelbergCement is currently particularly affected in Lombardy, where its Italcementi subsidiary has its headquarters. HeidelbergCement has shut down its factories in Italy and imposed a freeze on hiring and non-essential spending. "You can see it's hitting the world like a wave," says Von Achten. "It's a tough test."

World: Cement producers are mobilising human and material resources and implementing strategies to keep operations going with the minimum possible impact from the coronavirus. Germany-based HeidelbergCement subsidiary Lehigh Hanson has closed a minority of its facilities and prepared a contingency plan for further reduced operations ‘if conditions worsen.’ Brazil-based Votorantim Cimentos has established a Special Coronavirus Crisis Management Commission to aid communications and emergency response implementation across its facilities. UK-based Quinn has suspended all non-essential travel for employees.

Germany: HeidelbergCement’s profit was Euro1.24bn in 2019, down by 3.4% from Euro1.23bn in 2018. Its revenue grew by 4.3% to Euro18.9bn from Euro18.1bn. HeidelbergCement says that it reduced its specific net CO₂ emissions by 1.5% year-on-year to 590kg/t from 599kg/t in 2018 and ‘intensified its research and development (R&D) efforts on carbon capture and utilisation/storage (CCU/S)’ in every operating region globally.

The group announced a year-on-year increase in volumes in the first two months of 2020, with all but three of its plants (HeidelbergCement subsidiary Italcementi’s 2.8Mt/yr Calusco plant, 2.5Mt/yr Rezzato plant and 0.6Mt/yr Tavernola plant in Lombardy region, Italy) still operating through the coronavirus pandemic, though it noted that construction is slowing in the US, Australia and Western Europe due to the outbreak.

HeidelbergCement cancelled its 7 May 2020 annual general meeting (AGM) ‘due to the spread of the coronavirus.’

Italy: HeidelbergCement and its Italian subsidiary Italcementi are each donating Euro100,000 to the Ospedale Papa Giovanni XXIII in Bergamo. The region in Lombardy in Northern Italy has been markedly affected by the coronavirus outbreak with over 400 fatalities since February 2020. Italcementi’s headquarters is located in the city. Italcementi's managing director Roberto Callieri has also invited employees to support the hospital and other institutions.

Bosnia & Herzegovina: Germany-based HeidelbergCement subsidiary Tvornica Cementa Kakanj (TCK) recorded a profit of Euro7.35m in 2019, down by 15% year-on-year from Euro8.63m in 2018. Sales rose by 1.8% over the period, to Euro37.7m from Euro37.0m. The company explained the profit drop in terms of increased operating costs, which rose by 3.8% to Euro29.4m from Euro22.7m in 2018.

Egypt: Germany-based HeidelbergCement subsidiary Suez Cement’s losses fell by 11% year-on-year to US$75.0m in 2019 from US$84.1m in 2018. Mubasher News has reported that sales also fell, by 13% to US$41m from US$0.47bn.

Suez Cement is seeking buyers for its 51% stake in Kuwait-based Hilal Cement.

UK: Germany-based HeidelbergCement’s subsidiary Hanson Cement will be the subject of a study in the use of biomass and hydrogen fuels coordinated by the Mineral Products Association (MPA). The Department for Business, Energy and Industrial Strategy is funding the Euro3.81m study, the results of which it says will be shared across the cement industry. HeidelbergCement CEO Dominik von Achten said, "In addition to our activities in the field of carbon capture, use and storage (CCUS), this project is an important step towards realising our vision of carbon-neutral concrete by 2050.”

Germany: HeidelbergCement has reported that its result from current operations (RCO) for the fourth quarter of 2019 grew by 3% year-on-year to Euro603m, from Euro584m in the fourth quarter of 2018. Its result from current operations before depreciation and amortisation (RCOBD) grew by 13% to Euro968m from Euro858m, while its revenue declined by 3% year-on-year from Euro4.70bn to Euro4.58bn.

HeidelbergCement reported that its cement sales were 31.4Mt for the quarter, 2% lower than the 32.0Mt sold in the fourth quarter of 2018. It will release its consolidated financial results on 19 March 2020.

Germany: HeidelbergCement’s revenue rose by 2.1%, on a like-for-like basis, to Euro18.9bn in 2019. In its preliminary results the group said that it had focused on prices rather than sales volumes. Its cement and clinker sales volumes fell by 1.6% year-on-year, excluding consolidation effects, to126Mt in 2019. Ready-mixed concrete sales rose by 3.4% to 50.7Mm³. Its current operations before depreciation and amortisation rose by 2.5%, on a like-for-like basis, to Euro3.58bn. The building materials producer plans to issue a more detailed trading statement in mid-February 2020 detailing its performance.

UK: Hanson Cement has appointed Andy Murphy as national commercial director. He reports directly to chief executive officer (CEO) Simon Willis and assumes commercial responsibility for the cement division as well as Hanson’s major projects and commercial excellence teams. Murphy holds experience in sales and marketing roles in the construction sector, including at Lafarge Tarmac, Jewson and building materials supplier SIG Distribution.