Displaying items by tag: Results
Italy: Cementir’s acquisition of Compagnie des Ciments Belges has propped up its sales revenue, volume and operating profit for the first half of 2017. Its sales revenue rose by 31.3% year-on-year to Euro631m in the first half of 2017 from Euro481m in the same period in 2016. However, on a like-for-like basis its sales revenue fell by 1.5%. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 68.5% to Euro85.1m from Euro72m but fell by 4.9% on a like-for like basis. Its sales volumes of cement rose by 34% to 6.37Mt from 4.75Mt but fell by 2.4% on a like-for-like basis. The group blamed its poor like-for-like performance on falling revenue in Turkey and Malaysia despite good results in Denmark, Norway, Sweden, China and Italy.
“Results in the first half 2017 were up thanks to the effect of the acquisitions concluded in the second half 2016, which added Euro16.6m to EBITDA, despite adverse changes in exchange rates. On a like-for-like basis, the improvement in EBITDA in Egypt, Italy, China and Norway partially compensated lower earnings in Turkey and, to a lesser extent, in Denmark and Malaysia, as well as the depreciation of foreign currencies against the Euro – mainly the Egyptian Pound and the Turkish Lira,” said Francesco Caltagirone Jr, Chairman and Chief Executive Officer (CEO).
US: Eagle Materials’ revenue has risen by 23% year-on-year to US$366.1m in the first quarter of its 2018 fiscal year, which runs 1 April – 30 June 2017. Its first quarter earnings before interest and income taxes increased by 22%, reflecting improved sales volumes and net sales prices across nearly all businesses and the financial results of the recently acquired cement plant in Fairborn, Ohio with related assets.
Cement revenues for the first quarter, including joint venture and intersegment revenues, came to US$183m, a rise of 26% year-on-year. The average net sales price rose by 6%. Total cement sales volumes increased by 21% to 1.5Mt. Like-for-like average net cement sales prices and sales volumes increased by 4% and 7%, respectively.
Operating earnings from Eagle Materials’ cement activities for the first quarter were a record US$43.2m, 37% higher than the same quarter of the 2017 fiscal year. The earnings improvement was driven primarily by improved average net cement sales prices and cement sales volumes and earnings from its Fairborn Business. During the quarter, its Nevada cement plant experienced reduced production in connection with the installation of certain pollution control equipment to enable the plant to burn solid-waste fuels. The ability to use solid-waste fuel will lower energy costs in the future. The reduced production negatively affected the absorption of operating costs at the cement plant during the quarter. The project is expected to be completed in the autumn of 2017.
Greece: The US market has continued to drive Titan Group’s sales in the first half of 2017. Its overall turnover rose by 6.9% year-on-year to Euro774m in the first half of 2017 from Euro724m in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18.9% to Euro142m from Euro120m. Over half of its turnover came from the US where the group noted rises in residential and infrastructure construction following economic growth and increased employment.
In the group’s other territories the situation was mixed, with the Greek construction market remaining depressed. Here cement consumption declined in the first half of 2017 following the end of several larger scale infrastructure projects during the early months of the year. Markets in Southeastern Europe delivered higher turnover but profits were hit by raising energy costs. Egypt continued to be negatively affected by the devaluation of the Egyptian Pound, although the group did manage to recapture sales volumes by increasing its fuel grinding capacity. Local competition arising from the start up of two new plants near to where its Adoçim subsidiary operates decreased sales volumes in Turkey and the construction market continued to decline in Brazil.
Cemex shows steady performance in first half of 2017
27 July 2017Mexico: Cemex’s consolidated net sales fell slightly to US$3.6bn year-on-year for the second quarter of 2017. However, on a like-for-like basis taking into account only ongoing operations and foreign exchange fluctuation, its net sales rose by 2%. This rise was attributed to positive currency variations in Mexico and the US, as well as higher sales volumes in Europe.
However, the group’s operating earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 8% to US$696m due to lower contributions from South, Central America and the Caribbean, Europe and Asia, Middle East and Africa regions, partially offset by higher contributions in Mexico and the US. Globally, Cemex sold 17.9Mt of cement in the second quarter of 2017, a 3% fall year-on-year. In the first half of the year it sold 33.9Mt of cement. Overall, Cemex’s net sales rose by 3% on a like-for-like basis to US$6.7bn in the first of 2017 and its operating EBITDA fell by 4% on a like-for-like basis to US$1.33bn.
“Our second quarter operating and financial performance was essentially in line with our expectations as of the first quarter: good results in Mexico, the US and Europe; increasing challenges in Colombia and Egypt, and to a much lesser extent the Philippines,” said Fernando A Gonzalez, chief executive officer (CEO).
By region, in Mexico Cemex’s net sales came to US$810m for the second quarter and US$1.53bn for the first half, a rise of 7% compared to the first half of 2016. In the US its net sales came to US$916m for the second quarter and US$1.73bn for the first half, a 1% fall year-on-year. In South & Central America and the Caribbean, sales brought in US$479m in the second quarter and US$958m in the first half, a fall of 6% on a like-for-like basis. In Europe the second quarter saw a 2% improvement in cement sales to US$934m, while the first half saw US$1.67bn of sales, a 3% like-for-like rise. In Asia, the Middle East and Africa, sales were US$327m in the second quarter and US$653m, a 7% like-for-like fall year-on-year.
Siam Cement Group downgrades forecast for 2017
27 July 2017Thailand: Siam Cement Group has revised down its sales growth outlook for 2017 to 3 – 5 % from 5 - 10%, following an unexpected drop in cement demand in the first half of the year. The group's net profit in the April to June period was US$396m, a decrease of 17% year-on-year, on sales of US$3.2bn, unchanged from the same period of 2016.
"The cement market in Thailand slowed down more than we expected," explained Chief Executive Roongrote Rangsiyopash. Net profits in cement and building materials, one of its three core business units, slid by 29%.
Roongrote said that government infrastructure projects, which are being increasingly approved and going through bidding procedures, had not yet reached the stage of actually needing cement.
Domestic cement sales by volume were down by 7% year-on-year in the April-June period, following an earlier 7% fall in the previous quarter. Demand in all sectors, from the government, commercial construction and residential buildings, declined. "I hope that the latter half of the year will improve, but I am not sure that we can make up for the decline in the first half," added Roongrote.
Adding to the slow domestic market, other Association of Southeast Asian Nations (ASEAN) markets also saw sluggish cement demand, although Roongrote shrugged off concerns, saying that the slump had been caused by ‘temporary factors.’
LafargeHolcim beats expectations so far in 2017
26 July 2017Switzerland: LafargeHolcim has released its results for the second quarter and first half of 2017. Its net sales were up by 3.6% on a like-for-like basis in the quarter and its operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 10.1% on a like-for-like basis, driven by pricing, cost discipline and synergies.
During the second quarter the group saw net sales of Euro6.16bn and an operating EBITDA of Euro1.6bn. Its net income rose to Euro707.6m, a rise of 38% from the same period in 2016 when it made Euro512.2m.
In the first half of 2017 LafargeHolcim’s net sales were Euro11.2bn, a 4.4% like-for-like improvement compared to the first half of 2016. Its operating EBITDA was Euro2.28bn and its recurring net income was Euro611.9m, a rise of 39% compared to Euro440.3m.
Beat Hess, Chairman and interim CEO said, "LafargeHolcim delivered positive earnings growth for the fifth consecutive quarter supported by favourable pricing, cost discipline and synergies. The unique strengths of our balanced portfolio are once again evident in our results with key countries such as the US, India, Nigeria and, notably this quarter, Mexico making significant contributions to earnings, more than offsetting headwinds in some of our markets. On that basis, and with our performance to date, we remain confident that we will achieve our full year guidance and our 2018 targets.”
UNACEM profit up in second quarter of 2017
25 July 2017Peru: Union Andina de Cementos (UNACEM) recorded a profit of US$17.0m in the second quarter of 2017, an increase of 26.8% from a profit of US$13.4m in the same year-earlier period. The firm's profit for the first half of 2017 stood at US$120.2m, up from US$110.4m in the first half of 2016. Net sales totalled US$143.2m in the second quarter of 2017, almost the same level recorded in 2016. The company’s cement sales fell by 4.5% year-on-year in the second quarter of 2017.
Hope Cement to rebrand as Breedon Cement
20 July 2017UK: Breedon Group will rename Hope Cement as Breedon Cement in August 2017. It said in its half-year report for 2017 that the acquisition of Sherburn’s import terminals had broadened its cement business and that it wanted to bring it all under one group brand.
“I am pleased to report that in the first half of 2017 the former Breedon Aggregates business posted a strong profit improvement and the former Hope Construction Materials business made a robust contribution, even after taking into account the shutdowns of both our cement kilns for planned annual maintenance and upgrade during the first half, which were completed on time and to budget,” said executive chairman Peter Tom. The construction materials group doubled its revenue in the first half of 2017 to Euro368m.
The company also said that it had completed the integration of the former Hope operations and all three divisions now use a common IT platform. It expects to deliver synergies of Euro11m in 2018, ahead of its original schedule.
India: UltraTech Cement plans to build a 3.5Mt/yr cement plant with an investment of US$400m at Dhar in Madhya Pradesh. Chairman Kumar Mangalam Birla informed the producer’s annual general meeting that the project is scheduled to start commercial production in the fourth quarter of its 2019 financial year, according to the Press Trust of India. The company also intends to spend a further US$404m towards capacity de-bottlenecking projects, regulatory requirements, plant infrastructure and routine maintenance at its plants.
The cement producer has reported its financial results for the first quarter of its financial year that ended on 30 June 2017. Its net sales rose by 6% year-on-year to US$1.08bn from US$1.02bn in the same period in 2016. Its profit after tax rose by 15% to US$139m from US$121m. The results included those of the cement plants of Jaiprakash Associates and Jaypee Cement Corporation that UltraTech acquired in late June 2017. The cement producer reported that its costs had risen during the quarter due to rising energy and logistic costs due to ballooning fuel prices.
India: ACC’s sales have risen as its Jamul cement plant in Chhattisgarh has ramped-up production increasing its presence in the east of the country. Its sales rose by 12.7% year-on-year to US$1bn in the first half of 2017 from US$888m in the same period in 2016. Its cement sales volumes rose by 6.9% to 13.3Mt from 12.5Mt. Its net profit after tax rose by 12.5% to US$83m from US$74m. The subsidiary of LafargeHolcim also launched two new brands – ACC Suraksha and ACC HPC – in the preceding quarter.