Displaying items by tag: Outlook

Ireland: CRH reported consolidated sales of US$26.3bn during the first nine months of 2023, up by 8% year-on-year from nine-month 2022 levels. The group also grew its earnings before interest, taxation, depreciation and amortisation (EBITDA) during the period, by 14% to US$4.8bn. CRH noted ‘positive’ underlying demand across its key markets and continued progress along its commercial strategy.

Chief executive officer Albert Manifold said ‘‘I am pleased to report another strong performance for our business. Our integrated solutions strategy continues to deliver superior growth, while our strong cash generation and disciplined approach to capital allocation enables us to create additional value for our shareholders.” He added “Looking ahead to the remainder of the year, we are raising our guidance and expect to deliver full-year EBITDA of approximately US$6.3bn.”

South Africa: PPC recorded consolidated sales of US$335m during the first half of the 2024 financial year, up by 21% year-on-year from US$277m during the first half of the 2023 financial year. Meanwhile, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 47%, to US$58.1m from US$39.6m. The group increased its cement sales volumes by 4%, and currency effects further helped to offset a 16% rise in its cost of sales. Cement volumes fell in South Africa, however PPC noted a locally ‘resilient performance’ despite a challenging market there and in Botswana, a ‘strong recovery’ in Zimbabwe and a ‘continued positive trajectory’ in Rwanda, via its subsidiary CIMERWA.

PPC said “The key focus for PPC will remain on its southern Africa businesses, including South Africa, Botswana and Zimbabwe. This includes continuing to improve its profitability and enhance returns through further operational efficiencies and cost containment measures. Without a significant increase in infrastructure spending and South African gross domestic product, South Africa's cement demand is expected to remain subdued and sustainability is therefore dependent on both capital discipline and margin management. Notwithstanding, PPC South Africa remains well positioned to benefit from an increase in cement demand, with additional capacity readily available to capture an upswing in demand without significant additional capital expenditure being required.”

Malaysia: Hume Cement Industries recorded US$65.5m in sales during the first quarter of the 2024 financial year (beginning 1 July 2023). This represents 48% year-on-year growth from US$44.2m one year previously. The producer’s profit was US$10.3m, against a US$2.57m loss in the first quarter of the 2023 financial year.

Bernama Daily Malaysian News has reported that Hume Cement Industries expects domestic cement demand to rise throughout the 2024 financial year. Nonetheless, the company said “The board remains cautious, as the uncertainties arising from geopolitical pressures continue to challenge the cement industry's input costs. The group is increasing its focus on developing sustainable construction materials in this growing economy, while continuing its efforts to enhance operational excellence.”

Germany: Heidelberg Materials raised its sales by 1.8% year-on-year to Euro16.1bn in the first nine months of 2023. Regionally, sales rose by 7.5% to Euro3.69bn in North America, by 2.6% to Euro2.76bn in Asia-Pacific by 3.5% to Euro4.94bn in Western and Southern Europe, by 2.5% to Euro2.74bn in Northern and Eastern Europe and Central Asia, but fell by 10% in Africa-Eastern Mediterranean Basin to Euro1.41bn. Cement volumes fell across all of the group’s business lines, as ‘solid developments’ in infrastructure and industrial commercial construction failed to offset locally ‘massive’ declines in residential construction. Heidelberg Materials raised its 2023 outlook based on anticipated continued moderate revenues growth to a full-year result of Euro2.85 – 3bn, from Euro2.7 – 2.9bn previously.

Chair Dominik von Achten said “We have closed the first three quarters of 2023 with a strong result, despite declining demand for our building materials. On a like-for-like basis, all group areas have contributed to this result. I would like to thank the entire Heidelberg Materials team for their outstanding performance in what continues to be a very challenging business environment.” Von Achten continued “In the third quarter, we were able to further strengthen our pioneering role in the decarbonisation of the building materials sector. Our activities have gained further momentum with the installation of the core equipment of the carbon capture, utilisation and storage (CCUS) plant in Brevik, Norway, and the start of construction of a CCUS pilot plant in Bulgaria. This brings us much closer to our goal of offering our customers climate-friendly products on a large scale.”

Pakistan: Gharibwal Cement recorded sales of US$15.7m during the first quarter of its 2024 financial year (FY2024), up by 14% year-on-year from US$13.8m in the first quarter of its 2023 financial year (FY2023). The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 10% to US$3.49m from US$3.89m.

Gharibwal Cement said that it expects local cement demand to remain ‘sufficient’ to maintain its sales growth throughout the rest of FY2024. It noted that rising coal and fuel prices may further impact its earnings for the year.

Uzbekistan: The State Statistics Committee has reported that cement plants produced 9.2Mt of cement during the first nine months of 2023, up by 5.9% year-on-year from the corresponding period of 2022. The Uzbek Building Materials Producers’ Association says that the new 1.4Mt/yr Karakalpak cement plant will further add to full-year production volumes in 2023 when it comes online later in the year.

Switzerland: Holcim has reported growing sales and earnings on an organic basis in first nine months of 2023. In real terms its sales declined by 10% year-on-year to US$22.7bn during the first nine months of 2023 from US$25.2bn in the first nine months of 2022. Its recurring earnings before interest and taxation (EBIT) fell by 2.2% to US$4.05bn from US$4.14bn. However, sales and recurring EBIT grew by 6.2% and 14% respectively on an organic basis. The group divested businesses in India, Brazil and Russia in 2022.

Cement sales were US$11.5bn (51% of group sales), down by 20% from US$14.4bn (57% of group sales). These sales rose by 12% on an organic basis. Throughout the period, ECOPlanet low-carbon cement accounted for 19% of the company’s cement sales. It also recycled 17% more construction and demolition waste year-on-year. Group CO2 emissions per net sales fell by 43% between 2020 and 2023.

Chair and chief executive officer Jan Jenisch said “I thank all members of the Holcim family for delivering profitable growth in the third quarter of 2023 despite challenging economic conditions, marked by softer demand in some markets and foreign exchange headwinds.” He added “The third quarter of 2023 results confirm Holcim’s strong earnings profile, with broad-based growth drivers delivering another increase in profitability. This performance gives us the confidence to upgrade our 2023 guidance to an industry-leading recurring EBIT margin of above 17% for the year.” The group also upgraded its outlook for full year organic sales growth to above 6% and for organic EBIT growth to above 10%.

US: Eagle Materials sold 4.14Mt of cement during the first half of its 2024 financial year, from 1 April 2023, a slight increase from the volume sold in the same period in its 2023 financial year. It reported sales revenue from its wholly owned cement business of US$614m, up by 15% year-on-year and corresponding to 50% of total group sales. Overall, group revenue rose by 4.9% to US$1.22bn.

President and chief executive officer Michael Haack said "Market conditions for our construction materials remained resilient during the quarter, even as the Federal Reserve continued to raise interest rates and tighten money supply to contain inflation. Several factors helped offset the higher rates and supported demand for cement, including limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities. As demand remained strong and our operations remained nearly sold-out, we implemented a second round of cement price increases in early July across half our markets, and announced the next round of price increases for early January 2024.” Haack added “We expect that our portfolio of businesses will remain well-positioned for the second half of fiscal 2024."

Germany: Heidelberg Materials preliminary reported a 4% year-on-year decline in its sales during the third quarter of 2023, to Euro 5.6bn. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 17% to Euro1.39bn from Euro1.28bn. The group succeeded in raising its profit in the quarter, by 24% year-on-year to Euro1.08bn.

Heidelberg Materials says that it expects to record a ‘moderate increase’ in its revenues in full-year 2023. The company raised its profit target range for the year to Euro2.85 – 3bn from Euro2.7 – 2.9bn.

Kazakhstan: Steppe Cement reported sales of US$65.2m during the first nine months of 2023. This corresponds to a year-on-year decline of 4.8% from US$68.5m in the corresponding period of 2022. Steppe Cement forecast a year-on-year decline in its earnings before interest, tax, depreciation and amortisation (EBITDA) in full-year 2023 from US$30.9m in 2022, due partly to the impact of inflation on costs, including energy costs.

CEO Javier del Ser Perez said "Despite a slightly smaller domestic cement market so far in 2023, we remain confident that the company will continue to deliver strong sales figures going forward."