Displaying items by tag: Mexico
Holcim Mexico launches updated version of Holcim Fuerte
09 February 2016Mexico: Holcim Mexico has launched an updated version of Holcim Fuerte, a cement product aimed at the self-construction and housing sector. It is being advertised as providing better performance and savings of up to 30% per cubic meter placed. More than US$7m has been spent on developing the product including two years of laboratory studies and field trials. A national multi-channel advertising campaign in Mexico has been launched to raise awareness of the product.
Cemex announces return to positive income in 2015
04 February 2016Mexico: Cemex has announced its results for the fourth quarter and full year 2015. On a like-for-like basis, for ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 2% during the fourth quarter of 2015 to US$3.4bn. They rose by 5% for the full year to US$14.1bn. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) (also on a like-for-like basis) increased by 7% during the fourth quarter to US$663m and went up by 9% for the full year to US$2.6bn.
The increase in consolidated net sales, on a like-to-like basis, was due to higher prices of Cemex's products, in local currency terms, across most of its operations, as well as higher volumes in the US, the Mediterranean and Asia. On a like-for-like basis, operating earnings before other expenses, net, in the fourth quarter increased by 11% to US$410m and in the full year increased by 17% to US$1.7bn versus the same periods in 2014.
Fernando A Gonzalez, Cemex Chief Executive Officer, said, "Despite a challenging macroeconomic environment, which has affected many of our markets, our industry and Cemex in particular, we have been able to meet these challenges and deliver strong operating and financial results, on a like-to-like basis."
"Our full-year net income was positive for the first time in six years. In addition, our operating EBITDA increased by 9%, on a like-to-like basis, reflecting our cost-reduction program of US$150m as well as a positive operating leverage in several of our markets, which translated into a 1.1 percentage-point improvement in operating EBITDA margin. I am particularly pleased with the growth in our free cash flow after maintenance capex of more than US$480 million, which enabled us to reduce our debt by close to US$1bn during the year."
Sales in Cemex's Mexican operations decreased 19% in the fourth quarter of 2015 to US$672m, compared with US$827m in the fourth quarter of 2014. Operating EBITDA decreased by 10% to US$231m versus the same period of last year.
Cemex's operations in the United States reported net sales of US$967m in the fourth quarter of 2015, up by 5% from the same period in 2014. Operating EBITDA increased 26% to US$173m in the quarter, versus US$138m in the same quarter of 2014.
In Northern Europe, net sales for the fourth quarter of 2015 decreased 18% to US$738m, compared with US$901m in the fourth quarter of 2014. Operating EBITDA was US$71m for the quarter, 14% lower than the same period of 2014.
Fourth-quarter net sales in the Mediterranean region were US$370m, 4% higher compared with US$357m during the fourth quarter of 2014. Operating EBITDA decreased 5% to US$63m for the quarter versus the same period in 2014.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$436m during the fourth quarter of 2015, representing a decrease of 15% over the same period of 2014. Operating EBITDA decreased 25% to US$125m in the fourth quarter of 2015, from US$165m in the fourth quarter of 2014.
Operations in Asia reported a 4% increase in net sales for the fourth quarter of 2015 to US$162m, versus the fourth quarter of 2014, and operating EBITDA for the quarter was US$46m, up by 4% from the same period of 2014.
Mexico: Cemex has contributed to the restoration of the Monterrey-Nuevo Laredo highway, the main export-import route between Mexico and Texas, US. With 52% of Mexico's imports and exports moving along this highway, it is one of the main trade routes across the Mexican and US border.
With more than 15,000/day of trucks using the highway, its repair required extremely resistant and durable construction materials that guarantee road safety. To this end, Cemex supplied 98,000m3 of hydraulic concrete to restore a 15.6km stretch of the highway.
Cemex solved the challenge of paving the road without stopping traffic by utilising different work shifts to minimise the potential effect on this crowded highway and, simultaneously, guarantee correct placement of the hydraulic concrete. The project, which required 30,000t of cement, directly employed more than 100 people.
Elementia pays remaining US$45m for Cementos Fortaleza
17 December 2015Mexico: Mexican construction group Elementia has paid the final US$45m instalment for the acquisition of a 47% stake in Mexican cement producer Cementos Fortaleza from Switzerland's LafargeHolcim.
Cementos Fortaleza was formed as a joint venture in 2013 by Elementia and Lafarge, prior to its merger with Holcim. In 2014, Lafarge agreed to sell its interest in the venture for a total of US$225m. As part of the deal, Elementia was required to pay 80% of the purchase price, or US$180m, in December 2014 and the remaining 20% in December 2015.
Cemex reports 5% net sales growth in the third quarter of 2015
23 October 2015Mexico: Cemex's consolidated net sales reached US$3.7bn in the third quarter of 2015, an increase of 5% on a like-for-like basis for the ongoing operations and adjusting for currency fluctuations, versus the comparable period in 2014. The increase was due to higher prices in local currency terms in most operations, as well as improved volumes in the US and Asia.
Its operating earnings before interest, taxes, depreciation and amortisation (EBITDA) during the quarter reached US$677m, an increase of 5% on a like-for-like basis versus the same period in 2014. The increase was mainly due to higher contributions from Mexico, the US, as well as from the Northern Europe and Asia regions. Operating earnings before other expenses, net, in the third quarter, decreased by 8% to US$439m. Controlling interest net loss narrowed to US$44m from a loss of US$106m in the same period of 2014.
"Our results reflect the unprecedented strength of the US Dollar versus the currencies in most of our markets, which intensified during the quarter. Despite this, we had favourable operating results. Our quarterly sales and operating EBITDA increased by 5% on a like-for-like basis. While EBITDA margin was relatively flat during the quarter, year-to-date EBITDA margin was the highest since 2009. Our free cash flow after maintenance capital expenditure also increased by 25% during the quarter," said Fernando A Gonzalez, Chief Executive Officer. "We are pleased with the results so far of our 'Value-Before-Volume' strategy. Our year-to-date increase in consolidated prices, adjusted for the impact of our variable costs and freight rate increases, has offset slightly more than half of the effect of foreign-exchange fluctuations."
Court ruled in favour of Cementos de Chihuahua
15 October 2015Bolivia/Mexico: A civil court in La Paz, Bolivia has ruled to suspend the damages sentence imposed by the Inter-American Commercial Arbitration Commission (CIAC) that obliged Mexican cement company Grupo Cementos de Chihuahua (GCC) to pay Bolivian investment company Compania de Inversiones Mercantiles (Cimsa) compensation. The decision, announced on 9 October 2015, sets the arbitration court to issue a new resolution and cancels the embargo sentence ruled by a court in Colorado, US. This resolution obliged GCC to provide information about its properties in Colorado and to cancel any assets sales in that area.
Cement companies to invest US$18m in NAICM cluster
22 September 2015Mexico: A group of 20 Mexican cement companies included in the association of independent concrete companies (AMCI) have announced plans to invest US$18m in the installation of a sector cluster to supply concrete for the construction of Mexico City's new international airport (NAICM).
The companies seek to provide 48% of the concrete required for the project and are currently negotiating with the Mexican construction industry chamber (CMIC) in order to obtain the association's support for the initiative. The cluster would encompass the installation of 20 concrete plants with an estimated annual production of 384,000m3. The facilities would be operative while the construction of the terminal lasts, between three and four years.
Independent concrete companies seek to reach a market participation of 80% in Mexico, as big companies like Cementos Cruz Azul, Corporacion Moctezuma and Holcim Mexico sell their non-profitable assets to small and medium sized-enterprises. A total of 50 concrete plants have been taken over by independent firms in 2014 - 2015.
Grupo Cementos de Chihuahua on the lookout for acquisitions in Central and South America
18 September 2015Mexico/US: Grupo Cementos de Chihuahua (GCC) is ready to grow its operations in the USA and make an acquisition in Central and South America after refinancing its debt and improving its earnings margins via a cost cutting programme, according to local business daily El Universal.
Luis Carlos Arias, director of corporate treasury at GCC, explained that the company currently has only one syndicated bank loan of US$194m, which has been refinanced. As such, it has a more flexible credit structure, which allows it to take advantage of different growth opportunities.
In the US, GCC will invest US$90m in 2015 - 2018 to boost production capacity at its plant in South Dakota by 60% to 1.2Mt/yr. GCC has six cement plants, 117 concrete plants and 21 distribution centres from the north of Mexico to the north of the USA.
According to Arias, GCC is looking for opportunities to expand its business to Central and South America in order to have alternative revenues during the harsh winter in North America, which does not allow production during the coldest months. The company has not decided in which country it could make an acquisition as the cement market is highly concentrated in a few big companies. "There are not many opportunities, we are looking at the region as a whole," said Arias.
Grupo de Oro and LafargeHolcim launch Holcim Fuerte brand in Mexico
03 September 2015Mexico: Grupo de Oro and LafargeHolcim Mexico have strengthened their strategic partnership with the launch of Holcim Fuerte branded cement in 2015. The development of the new product commenced in 2012 and has been tested in different projects prior to its commercialisation. The new cement is targeted for builders laying foundations and reinforcing walls and beams, according to Quadratin.
Cementos Chihuahua seeks to increase sales in US
13 August 2015Mexico/US: Grupo Cementos Chihuahua (GCC) has announced plans to increase its sales in the US and reach a double digit rate by 2018. The company has estimated 6% income growth in the Mexican market and 8% growth in the US by the end of 2015. GCC has predicted that the cement sector in Mexico will slow down in the upcoming years. At present, 70% of the company's revenue comes from US, while 30% is obtained in the domestic market. GCC also aims to increase its production capacity in the US from 4.6Mt/yr to 5Mt/yr in the mid-term.