Displaying items by tag: Results
Cementos Molins continues to grow profit in 2016
03 March 2017Spain: Cementos Molins’s profit rose by 25.6% year-on-year to Euro63.9m in 2016 from Euro50.8m in 2015. However, its sales revenue fell by 12% to Euro561m from Euro638m and its cement and clinker sales volumes fell slightly to 13.7Mt. The cement producer blamed the result on poor sales in Argentina, Uruguay and Tunisia.
Qatar: Qatar National Cement Company plans to commission two cement mills for its Plant 5 during the first half of 2017 to increase its production capacity to 5500t/day. Then, construction work on the kiln will be completed in the second half of the year, according to comments made by Salem bin Butti Al Naimi, chairman and managing director of the company, that were reported by the Peninsular newspaper. The company intends to increase its production capacity of washed sand and calcium carbonate to capture an anticipated rise in market demand. It also intends to sell its Plant 1 to Umm Bab following an agreement in mid-2016.
The cement producer’s revenue fell by 2.6% year-on-year to US$313m in 2016 from US$321m in 2015. Its cement sales volumes fell slightly to 3.7Mt during the period. Its net profit rose by 2.3% to US$130m from US$127m.
Germany: The Mechanical Engineering Industry Association (VDMA) says that turnover of German manufacturers of construction equipment rose by 3% year-on-year to Euro9.3bn in 2016. This compares to a fall of world sales of construction equipment by 1%. The German domestic market grew by 20% to nearly Euro3bn in 2016, following a recovery in 2015, nearly matching the record year of 2007.
Growth was reported in most European markets, with the exception of the UK and in Central Eastern Europe. However, the industry saw sales decline by over 9% in North America. Infrastructure spending in the US is expected to stabilise this situation. Latin America suffered from the weakness of the Brazilian construction industry and general economy. Sales in Asia benefited from a recovery in China following four years of decline and an increase of 30% in India, boosted by road construction.
“We will only keep growing in the future if we further strive for international solutions and co-operations. In a highly specialised sector like ours, where special machines are not available in every region of the world, open markets are highly essential. We all depend on free trade and good economic sense. This applies for Europe and the United States alike,” said Johann Sailer, chairman of the VDMA.
LafargeHolcim sales crumble as earnings grow in 2016
02 March 2017Switzerland: LafargeHolcim’s net sales took a tumble of 8.7% to Euro26.9bn in 2016 from Euro29.5bn in 2015. Although on a like-for-like basis it says they declined by just 1.7%. However, its adjusted operating earning before interest, taxation, depreciation and amortisation (EBITDA) rose by 1.3% to Euro5.83bn from Euro5.75bn, with a higher improvement rate on a like-for-like basis. The building materials company didn’t explain why its sales had fallen in 2016. Instead it focused on its efforts on cutting costs, building benefits from synergies, working on pricing and growing its earnings.
“Our strong execution was visible across our five regions, which all grew earnings for the quarter and for the year. This performance underlines the strength of our diversified portfolio, which has a good balance of mature and developing markets. I am also pleased with the positive trajectory of markets such as the US, Nigeria, India and key countries in Europe, which we have singled out as important drivers for growth in 2017 and beyond,” said chief executive officer Eric Olsen.
The group’s sales volumes of cement fell by 8.8% to 233Mt from 256Mt with decreases in all regions. It reported that production overcapacity hit cement volumes and prices in Indonesia, Brazil continued to face challenging operating conditions with its ongoing recession and both Nigeria and Egypt faced difficult markets in the period. Of particular note its sales volumes fell in North America due to an economic downturn in Western Canada and a strong fourth quarter in 2015 to measure against. Operating EBITDA rose on a constant basis in Europe and North America only.
CRH grows sales and profits in 2016
01 March 2017Ireland: CRH’s sales revenue rose by 4% year-on-year to Euro27.1bn in 2016 from Euro23.6bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 41% to Euro3.13bn from Euro2.22bn. The group attributed the growth in sales and profits to positive sales in the Americas and Europe and benefits from its first year of full ownership of some assets purchased from LafargeHolcim in 2015.
"2016 was a year of significant profit growth for CRH, with margins and returns ahead of last year in every division. We benefited from positive momentum in the Americas and also in Europe, particularly in the Northern and Eastern regions where we operate," said chief executive Alfred Manifold.
By region, the group’s Europe Heavyside division reported boosts in sales revenue and operating profits. However, its cement operations grew sales volumes in several countries where it faced price pressure and production overcapacity including Ireland, Spain and France. In Germany the group noted that sales volumes grew in its first full year of full ownership due to growth in residential building but that prices remained under pressure. Weak activity in Poland also affected pricing and reduced sales and operating profits.
Outside of Europe, the Americas Materials division also grew its sales and profits. Demand in North American cement markets increased as declines in Western Canada were offset by increases in Quebec and the US. In Brazil it reported that cement consumption fell by 12% in the southeast region and competition remained high. Finally, the group’s new Asia division said that cement demand grew in 2016 due to the private sector and government infrastructure spending. Its operating profit was also boosted by higher prices and lower input cost, including a lowered price of imported clinker. In China the group said that prices fell by due to a poor construction market and production overcapacity.
Nigeria: Dangote Cement’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 2% year-on-year to US$817m in 2016 from US$834m in 2015. However, its sales revenue rose by 25.1% to US$1.95bn from US$1.56bn and its sales volumes of cement rose by 25% to 23.6Mt from 18.9Mt. The cement producer reported a particular increase in sales volumes, revenue and earnings outside of Nigeria and it said that its export sales have turned Nigeria into a net exporter.
“We exported nearly 0.4Mt into neighbouring countries and in doing so, we achieved a great milestone by transforming Nigeria into a net exporter of cement. This is a remarkable achievement, given that only five years ago, Nigeria was one of the world’s largest importers, buying 5.1Mt of foreign cement at huge expense to our balance of payments. We will increase our exports substantially in 2017,” said chief executive officer Onne van der Weijde. He added that despite some local and temporary disruptions in Ethiopia and Tanzania, the cement producer strengthened its market share in every country. Operations are also due to start in the Republic of Congo and Sierra Leone in 2017.
By region, Nigeria’s economy entered into a recession in 2016. Dangote Cement increased its domestic sales volumes by 11.1% to 14.8Mt from 13.3Mt, although it said that its fourth quarter was hit by a price increase in September 2016. Despite the poor economic situation in the country it said that overall cement sales grew by 5.7% in 2016. Outside of Nigeria it increased its cement volumes by 54% to 8.64Mt from 5.61Mt, aided by the opening of a plant in Tanzania.
Poor Colombian market hits Cementos Argos sales volumes in 2016
28 February 2017Colombia: Cementos Argos’s sales volumes of cement fell by 5.5% year-on-year to 3.44Mt in 2016 from 3.64Mt in 2015. Despite increasing its presence in the US with the acquisition of the Martinsburg, West Virginia cement plant, its sales volumes in Colombia fell by 19% in 2016, more than the market, due to its ‘higher exposure’ to the infrastructure and industrial segments and increasing volumes of imports. Despite this, its sales revenue rose by 7.7% to US$2.95bn from US$2.74bn and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8.7% to US$572m from US$526m.
“We are very satisfied with the results of the US regional division, as they ratify the visionary decision taken 11 years ago by the company, to enter with our value proposition into the largest economy and the most demanding market. Our diversification strategy allows us to balance different market cycles, drives our results and supports value generation for our shareholders,” said Juan Esteban Calle, chief executive officer of Cementos Argos.
The US became the cement producer’s biggest market in 2016 contributing about half of its revenue. By region, cement sales volumes grew in the US by 18.5% to 3.97Mt from 3.36Mt. Sales volumes in its Caribbean and Central American region rose by 4.7% to 4.95Mt from 4.73Mt. It added that it had decided to postpone the expansion of its Sogamoso cement plant in Colombia. Instead it plans to increase its production capacity by 1Mt at its Rioclaro and Cartagena plants in 2017 and 2018.
Sales in US support tough year for Vicat as cement volumes soar
28 February 2017France: Sales in the US have supported Vicat’s revenue in 2016. Its consolidated sales in the US rose by 6.2% year-on-year to Euro363m in 2016 from Euro342m in 2015. Overall the company’s sales fell slightly to Euro2.45bn in the year, although they rose by 4.1% at constant scope and exchange rates. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 3.2% to Euro458m from Euro444m. Sales volumes of cement rose by 10.5% to 21.9Mt from 19.8Mt.
"Vicat performed well in 2016 against the backdrop of a very difficult geopolitical and monetary climate. Operating margins rose and results reflected the good sales momentum achieved by the group's staff, combined with a very firm grip on costs. The year was marked by renewed growth in Egypt and France, and our operations continued to improve in the US," said group chairman and chief executive officer Guy Sidos.
By region, notably, sales volumes rose in France by 6% in domestic and export markets, boosted particularly by export sales, with sales revenue up also. Elsewhere in Europe sales fell but volumes rose after a difficult first half of the year. Sales volumes in the US rose by 4% driven by ‘strong momentum’ in the Southeast region, making up for a decline in California caused by a strong previous year and poor weather. In the group’s Asian region its sales revenue fell mainly due to currency variations in Turkey and particularly in Kazakhstan. Finally, in its African and Middle East region, sales revenue in Egypt rose by 3.5% despite a devaluation of the local currency driven by a ‘sharp’ increase in volumes. Two coal grinders that entered into service in late 2015 also helped to grow its EBITDA.
China Shanshui Cement warns of loss in 2016
28 February 2017China: China Shanshui Cement has warned its shareholders that it expects to make a loss in 2016. Despite making improvements in administrative expenses the company has blamed the situation on consolidation in the Chinese cement market. It plans to release its financial report for 2016 in March 2017. It also said that it has appointed an independent financial advisor to its board.
Adelaide Brighton’s costs hit by blackouts
24 February 2017Australia: Adelaide Brighton’s financial results have been hit by disruptions to electricity supplies in South Australia. Closure of generation capacity in the region, a temporary closure of an interconnection in July 2016 and bad weather that led to disrupted supplies in September 2016 all caused higher electricity and gas prices, production loses at several plants and reduced sales to customers, whose own facilities were also suspended. The company’s profit after tax fell by 10.4% year-on-year to US$143m in 2016 from US$160m in 2015. Its sales revenue decreased by 1.2% to US$1.07bn from US$1.09bn. It blamed the decline on reduced cement demand in Western Australia and the Northern Territory.
Overall cement and clinker sales volumes fell by 4% in 2016 but this was mitigated by higher sales in New South Wales, Victoria and south-east Queensland. Low sales volumes, higher energy costs and import costs also hit cement margins. The cement producer expects volumes to improve in 2017.