Displaying items by tag: Loss

Mexico: Cruz Azul, owned by Cooperativa Cruz Azul, has reportedly incurred losses exceeding US$1.26bn due to the control of its cement and concrete plant in Tula, Hidalgo by a dissident group over the past four years, according to Noticias Financieras news. The company has expanded production capacity in four other plants and announced new investments in Campeche to mitigate production issues at the Tula plant. Legal director Rafael Anzures Ortiz said that the group is holding the facilities hostage, reportedly affecting over 4000 jobs. He said that the plant has the capacity to produce 35-40% of the company's total cement volumes, but no cement has been produced in the last four years, despite the salaries of more than 1000 workers at the plant being guaranteed.

Rafael Anzures Ortiz said "We have been very emphatic in requesting the state government to go to court and to seek compliance with the law so that this plant can start operating again and this entire economy can be reactivated."

China: Asia Cement (China)’s nine-month profit of US$16.3m in 2023 turned to a loss of US$64.6m in 2024, Dow Jones Institutional News has reported. The group attributed the reversal to a drop in its selling prices.

China: Anhui Conch Cement recorded a decline in its net profit of 49% year-on-year in the first half of 2024, Reuters has reported. The group’s Building Materials Industry business reported a 21% year-on-year decline in its sales to US$4.71bn. Its Cement business also recorded declining sales, by 23% to US$3.87bn.

Vietnam: Several Vietnamese cement producers have reported losses in the first half of 2024, attributing the downturn to reduced domestic demand and competitive pricing pressures, reports Vietnam Investment Review. Vicem But Son recorded losses of US$1.5m in the second quarter of 2024, marking its seventh consecutive quarter of losses, with a 2024 first half revenue figure of US$50m, down by 10%, and total losses reaching US$3.83m. Vicem Hai Van also continued its decline, with a 43% drop in second quarter revenue to just over US$4m and losses of US$396,000. Vicem leaders said that challenges arose due to a reduced demand following limited civil engineering projects and a stagnant real estate market.

Despite the sector's overall downturn, firms like Vicem Ha Tien and Chinfon have recorded profits, with Ha Tien posting US$141m in revenue and US$875,000 in profits, and Chinfon doubling its yearly profit to US$25,250. However, the outlook for the remainder of 2024 remains bleak, with anticipated difficulties in market recovery and increasing input costs. Acoording to Vicem, the cost of electricity will continue increasing, while the demand for cement is not anticipated to recover before the end of 2024.

China: China National Building Materials (CNBM) expects to report an unaudited loss of approximately US$275m for the first half of 2024, a significant downturn from a net profit of US$192.5m in the same period in 2023.

CNBM has attributed the anticipated loss to decreased selling prices and reduced sales volumes for key construction materials such as cement.

China: Beijing-based China National Building Material (CNBM) anticipates its first-quarter losses to increase by more than 50% to US$180m, up from US$72.6m in 2023. The company attributes the increased losses to lower selling prices for its key products, worsening performance of associates, and higher currency losses, despite a decrease in cost of sales. Following a meeting with CNBM, Citi analysts reported a 10% year-on-year fall in demand for the cement sector in the first quarter of 2024, with a forecasted full-year decline of 3%-5%.

Belarus: Despite revenue increases for two of its three major cement companies, the cement industry in Belarus recorded net losses in 2023. According to Business World Magazine Ukraine, Krychaucementnashyfer saw a 9.3% rise compared to the previous year, while Krasnaselskstroymateryjaly experienced a 5.6% year-on-year rise in revenue. Conversely, Belarusian Cement Plant's revenue declined by 2.9%. Overall, the sector's losses totalled nearly US$64.2m, representing a year-on-year increase of 50%.

Krychaucementnashyfer's losses escalated nearly fourfold to US$36.9m, while Krasnaselskstroymateryjaly's losses doubled to US$16.9m. However, Belarusian Cement Plant managed to reduce its net loss by 16%, resulting in a loss of US$10.5m.

UAE: Fujairah Cement has reported accumulated losses reaching over a third of its capital, primarily due to inflation and decreased revenue, according to Zawya. The total accumulated losses for the 2023 financial year stood at US$35.5m, equating to 36.68% of the company's capital, as disclosed on the Abu Dhabi Securities Exchange.

The company attributes the increase in losses to various factors, including the rising cost of coal and energy, lower clinker selling prices, a decline in revenue, and higher logistics and finance costs. The company is currently in advanced talks to appoint a renowned financial advisor for assistance in restructuring and exploring other potential options to mitigate these losses.

A separate disclosure highlighted that the major challenge faced during the year was the escalated production costs, primarily driven by increased coal and fuel prices.

China: China Shanshui Cement expects its full-year loss to exceed US$120m in 2024. Reuters has reported that the producer attributes the anticipated decline to a ‘substantial’ drop in cement sales prices.

India: Sagar Cements recorded sales of US$80.5m in the third quarter of the 2024 financial year, up by 16% year-on-year from US$69.3m during the corresponding quarter of the previous financial year. Cement sales volumes rose by 14% year-on-year. The Hindu BusinessLine News has reported that the growth allowed Sagar Cements to reduce its net losses by 57%, to US$1.22m.

Managing director Sreekanth Reddy said “Favourable prices prevailed in our key markets. As far as EBITDA and margins are concerned, we observed a significant enhancement on a per-tonne basis, consistent with our earlier projections.” Reddy added “We anticipate this positive trend to persist in the future, supported in part by higher utilisation levels of recently-acquired units and strategic initiatives aimed at promoting the use of green power, alternative fuels and the deployment of electric trucks and wheel loaders.”