Displaying items by tag: Ireland
Ireland: Even as it adjusts to its mammoth Euro6.5bn 2015 acquisition of LafargeHolcim’s divestments, Irish group CRH is reported to be mulling the purchase of US and Belgian cement assets, which HeidelbergCement may have to sell as a consequence of its acquisition of Italcementi. In Belgium HeidelbergCement and Italcementi have 4.5Mt/yr out of a total of 6.2Mt/yr of integrated cement capacity. In the US they share around 16.4Mt/yr out of 115Mt/yr.
Chief executive Albert Manifold told analysts that the group is focused on cutting back on its debt levels and is likely to look at assets should HeidelbergCement be forced to sell. "US cement is of interest to us and we're fully aware of the asset that may spin out of the potential acquisition," he said. "With regards to Belgium, it's a prime asset and certainly it would make a good fit with our businesses, providing the value is right."
CRH is also currently linked with a possible US$1.5bn acquisition of LafargeHolcim’s Indian cement businesses. The apparent enthusiasm CRH has with respect to expand is at odds with the majority of major players in the cement sector, many of which are going through periods of transition or are struggling with debt. "I'm always interested to open the paper and see what businesses we're bidding on,” added Manifold. “People are trying to talk up competition on deals. We're probably in 10% of the stuff we're associated with."
CRH’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew to almost Euro1bn following a ‘positive trading backdrop’ in its main markets in the first three months of the 2016.
CRH reports 9% rise in sales in first quarter of 2016
27 April 2016Ireland: CRH has reported in a trading update that its overall sales rose by 9% year-on-year in the first quarter of 2016. By region it saw a 22% increase in the Americas, a 12% increase in Asia and no increase in Europe. No specific figures were released in the statement issued ahead of the company annual general meeting.
The Ireland-based construction materials producer’s Europe Heavyside division noted that cement sales volumes grew in the UK and Finland. Cement sales volumes were ‘broadly in line with 2015’ in Poland. In the Philippines CRH reported that cement demand was supported by strong foreign direct investment in the business process outsourcing sector, overseas workers' remittances and increasing government infrastructure spending.
CRH expects demand for its products to grow in the US and the Philippines in its outlook for the second half of 2016. In the US funding for infrastructure is expected to increase moderately with improving state finances and the passing in 2015 of the Fixing America's Surface Transportation (FAST) Act. It also expects residential and non-residential construction to grow.
Ireland: Irish Cement is planning to cut the amount alternative fuels it intends to co-process at its Limerick cement plant to 90,000t/yr. The cement producer withdrew its initial planning application in March 2016 but has resubmitted a new application with a lower amount of alternative fuels, according to the Limerick Leader newspaper. It now aims to burn half of the original amount that was originally requested.
It originally announced its Euro10m plan to co-process alternative fuels including tyres at the plant in December 2015. The investment is intended to create 40 jobs. However, local citizens have opposed the plans with over 450 people signing a petition against the development.
Ireland: Justice Max Barrett of the High Court has ruled that the Competition and Consumer Protection Commission (CCPC) breached the terms of a search warrant by seizing the email account of a CRH executive in 2014. The court also determined that the competition body had breached the Data Protection Acts, the Irish constitution and the European Convention on Human Rights. The court added that the seized emails contained material outside the scope of the investigation.
The CCPC responded by saying it was ‘considering carefully’ the implications of the judgment and the next steps that it would take. However, its investigation into alleged anti-competitive practices by Irish Cement in the supply of bagged cement continues.
The CCPC carried out an unannounced search at the premises of Irish Cement on 14 May 2015 as part of an on-going investigation into alleged anti-competitive practices in the supply of bagged cement. During the search, the CCPC seized a number of electronic documents including the mailboxes of a number of current and former employees of Irish Cement. CRH argued that certain emails in the mailbox of one such employee, Seamus Lynch, were unrelated to the business of Irish Cement and were therefore not entitled to be seized. Accordingly, in November 2015, CRH brought a High Court action against the CCPC seeking an injunction to prevent the CCPC from examining these emails.
CRH named in Euro34bn lawsuit by Palestinian activists
31 March 2016Ireland: CRH has been named in a Euro34bn lawsuit file in Washington DC launched by Palestinian activists against a group of businesses operating in Israel. The activists who are trying to sue various groups with connections to Israel for allegedly ‘profiteering’ from the building of Jewish settlements in the West Bank, according to the Irish Times.
The Irish building materials company sold its 25% stake in Mashav, which owned the Israeli cement producer Nesher, in December 2015. However, the lawsuit is targeting CRH over its past co-ownership. The lawsuit accuses Nesher of supplying concrete for the foundations of Jewish settlements and for building barriers in the West Bank and for allegedly extracting minerals from Palestinian territory.
Ireland: CRH appointed William J Teuber, Jr as a non-executive Director with effect from 3 March 2016.
Teuber, aged 64 years and a US citizen, is the Vice Chairman at EMC Corporation, a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. In previous roles he was responsible for EMC’s global sales and distribution organisation (2006 – 2012) and served as Chief Financial Officer leading the company’s worldwide finance operation (1996 - 2006). Prior to joining EMC he was a partner in the audit and financial advisory services practice of Coopers & Lybrand.
Teuber is a member of the Board of Directors of Popular, a diversified financial services company, and Inovalon Holdings, a healthcare technology company. He holds an MBA degree from Babson College, a Master of Science in Taxation from Bentley College, and a Bachelors Degree from Holy Cross.
Ecocem to open Runcorn terminal for slag cement
21 March 2016UK/Ireland: Ecocem is to open a new terminal at Runcorn to increase its exports of slag cement to the UK. A second terminal in the south east of the UK will be opened later in 2016, according to the Irish Times. It has invested Euro5m towards building both terminals. The ground granulated blastfurnace slag (GGBS) producer is targeting the UK market due to demand for cement coupled with changes in the coal and steel industries.
The company says it has received orders for 200,000t of slag cement in its first year and that it is not taking any further orders. Opening its second terminal in the UK is anticipated to give it access to 80% of the UK market. Ecocem produces slag cement at three grinding plants in Dublin in Ireland, Moerdijk in the Netherlands and at Fos in France.
Irish Cement defers plan to burn tyres at Limerick plant
21 March 2016Ireland: Irish Cement has deferred its plan to co-process tyres at its Limerick cement plant. Planning was lodged in late February 2016, according to the Irish Examiner. However a spokesman for Irish Cement said that the company had noted a few days previously that the planning application had not been made available for public inspection, due to a ‘procedural’ matter. They added that the company was working with the Limerick City and Country Council to resolve the issue.
Local Green Party candidate James Gaffney raised concerns about the plant upgrade in local press in mid-March 2016. He alleged that no public consultation was being carried out on the plant’s plans and that the application was being fast-tracked. Irish Cement denied these claims.
Irish Cement announced its plan to burn alternative fuels at its Limerick plant in December 2015.
Ireland: CRH has taken the Competition and Consumer Protection Commission (CCPC) to the Irish High Court over the seizure of the emails of one of its executives during a competition investigation in 2014. The CCPC was not entitled to ‘essentially run riot’ whilst searching the premises of Irish Cement, a subsidiary of CRH, at Platin, County Meath said CRH’s legal representatives, according to the Irish Times.
Irish Cement has accused the CCPC of seizing and retaining the emails of Seamus Lynch relating to his role with CRH. The CCPC was investigating Irish Cement at this time. Lynch left Irish Cement in June 2011 to join CRH and, when the search was carried was the managing director of CRH Europe (Ireland and Spain). In its challenge, CRH is claiming that the CCPC was not entitled to seize and retain any electronic files relating to a crh.com email account assigned to Lynch because this was not related to the business and activity of Irish Cement.
The CCPC denies all claims. It previously agreed not to use the material pending the outcome of the case.
CRH operating profit grows by 39% to Euro1.28bn in 2015
03 March 2016Ireland: CRH’s operating profit has grown by 39% year-on-year to Euro1.28bn in 2015 from Euro917m in 2014. Its sales revenue grew by 25% to Euro23.3bn from Euro18.9bn. Favourable weather, encouraging markets and currency benefits were all attributed to the positive result.
“As a result of good performance from our heritage businesses and contributions from acquisitions, 2015 was a year of significant profit growth for CRH. Strong cash generation resulted in our year-end debt metrics being ahead of target, and we are well on track to restoring these metrics to normalised levels during 2016. Recently there has been some uncertainty about the pace of global growth. Our focus remains on consolidating and building upon the gains made in 2015. Against this backdrop, we believe 2016 will be a year of continued growth for the Group,” said Albert Manifold, chief executive of CRH.
The group’s Europe Heavyside division, which includes cement production, reported a fall of 8% year-on-year to Euro3.61bn in 2015 from Euro3.93bn in 2014. Operating profit fell by 11% to Euro135m from Euro151m. Challenging business conditions were noted in Switzerland, France, Germany and Finland.
For CRH’s acquisitions from Lafarge and Holcim, the group reported that trading results were above expectations. Good performances were noted in the UK, Europe and the Philippines. However, market challenges were encountered in France, Germany and Brazil. CRH completed its purchase of Lafarge and Holcim’s European and American assets on 31 July 2015. It then completed its purchased of assets in the Philippines on 15 September 2015.
In 2016 CRH expects continued growth in the US, growth in Asia, buoyed by the Philippines and growth in parts of Europe including the UK, Ireland and the Netherlands. More difficult market conditions are anticipated in Switzerland, Belgium, Germany and France.