Displaying items by tag: Results
East African Portland Cement’s revenue drops by 19% to US$35.9m
23 February 2017Kenya: East African Portland Cement’s sales revenue fell by 19% year-on-year to US$35.9m in 2016 from US$44.6m in 2015. It made a loss of US$5.15m compared to a loss of US$7.19m in 2015, according to Reuters. It said that sales volumes had fallen by 17% in 2016 due to a ‘change in the competitive landscape’ and that this had caused the fall in revenue. However, it added that it had cut its administrative expenses by 9% due to on-going cost management initiatives. Looking forward the company said that, as it expected cement supply to be higher than demand in the near term, it would focus on cutting costs.
Ambuja Cement’s sales suffer from demonetisation in 2016
21 February 2017India: Ambuja Cement’s standalone net sales fell by 2% year-on-year to US$1.37bn in 2016 from US$1.4bn in 2015. Its sales volumes of cement fell by 2% to 21.1Mt from 21.5Mt. However, its operating earnings before interest taxation, amortisation and depreciation (EBITDA) rose by 10% to US$251m from US$229m. It blamed the loss in sales on the government’s demonetisation policy and bad weather. Despite sales growth in the first half of the year, its sales volumes in the fourth quarter fell by 9% due to cash shortages.
“Our rapid adoption of cashless payment methods in the December 2016 quarter helped Ambuja to deliver a strong performance in 2016. In 2017 we are well placed to be part of the infrastructure development panned by the government and the new thrust on affordable hosing projects,” said Ajay Kapur, chief executive officer of Ambuja Cement.
The cement producer also reported that its operating costs fell in 2016 due to a reduction in energy costs, mainly due to an increased use of petcoke, higher usage of alternative fuels and general efficiency improvements.
Semapa’s cement sales fall slightly in 2016
20 February 2017Portugal: Semapa’s sales revenue from its cement business fell by 1.35% year-on-year to Euro471m in 2016. Its earning before interest, taxation, depreciation and amortisation (EBITDA) fell by 0.3% to Euro85.1m. It attributed the slight fall in revenue to a fall in turnover in Portugal and Tunisia, although it noted that it rose in Brazil.
Its sales volumes of Ordinary Portland Cement rose by 5% to 4.99Mt from 4.73Mt but its clinker sales fell by 13% to 0.42Mt from 0.48Mt. Despite the poor state of the construction market in Brazil, the cement producer’s local firm, Supremo Cimentos, managed to increase its sales as its Adrianópolis plant increased its production in the year following its opening in mid-2015.
Maple Leaf Cement sales grow by 11% to US$114m in first half
20 February 2017Pakistan: Maple Leaf Cement’s sales revenue increased by 11% year-on-year to US$114m in the first half of its financial year to 31 December 2016. Its profit rose by 12% to US$25m, according to the Dawn newspaper. Growth was attributed to cement sales in the local market despite a significant drop in exports to Afghanistan and an increase in the price of coal.
Australia: Boral’s revenue from its cement business fell by 4% year-on-year to US$118m in the first half of its financial year, which ended on 31 December 2016. Total cement sales volumes rose by 3%. The building materials producer blamed the fall in sales revenue on low wholesale clinker volumes due to higher direct sales volumes of cement. Its sales prices for cement grew by 1% for bulk cement and 3% for packaged products. It added that, although competition pressure and energy costs are rising, its cost improvement plans are helping.
Overall, Boral’s sales revenue fell by 5% to US$1.6bn from US$1.68bn. However, its profit after tax rose by 9% to US$114m from US$105m. It attributed this to a ‘solid’ performance in Australia combined with good earnings from Boral USA and USG Boral.
Germany: HeidelbergCement’s sale revenue, volumes and profits have all been boosted by its acquisition of Italcementi in 2016. Preliminary figures for the group show that its revenue rose by 13% year-on-year to Euro15.2bn in 2016 from Euro13.5bn in 2015. Its cement sales volumes rose by 28% to 104Mt from 81.1Mt and its operating income rose by 7% to Euro2bn from Euro1.85bn. The group said that 2016 had been its best year since the financial crisis in 2008. However, on a pro-forma basis, taking into account the contributions of Italcementi in 2015 and 2016, the group’s sales revenue fell slightly and cement sales volumes and operating income rose far less steeply.
“The year 2016 was an important milestone for HeidelbergCement,” said Bernd Scheifele, chairman of the managing board. “With the acquisition of Italcementi, we made a big leap in growth and achieved the best operating income since the financial crisis. The integration of Italcementi is well under way and offers significant earnings potential resulting from the implementation of identified synergies.”
By region, HeidelbergCement’s Western and Southern Europe division reported rising sales volumes of cement but falling revenue and operating income. Improving markets in Germany and the UK were offset by weak demand in Italy, France and Spain and the falling value of the British Pound versus the Euro. By contrast revenue, cement volumes and operating income were all up in the Northern and Eastern Europe-Central Asia area with a particular emphasis in Norway. Notably, demand growth was also reported in Russia driven by markets in Moscow and St Petersburg. In North America financial figures rose in 2016 but revenue fell in the last quarter of the year. Strong sales were recorded in the north and south of the US but a drop in sale volumes was noted in the Canadian Prairie provinces due to falling oil production. In the group’s Asia area sales volumes rose but revenue and operating income fell in 2016 due to a ‘significant’ fall in prices in Indonesia and Thailand. Finally, in the Africa-Eastern Mediterranean Basin the market picture was mixed with small increases in sales volumes, a drop in sales revenue and a slight increase in operating income due to increased market competition in Sub-Saharan countries.
Italy: Cementir Holding’s sales revenue has risen by 6% year-on-year to Euro1.03bn in 2016 from Euro0.97bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 2% to Euro198m from Euro194m and its sales volumes of cement rose by 7.9% to 10.1Mt from 9.4Mt. The gains arose from the company’s purchase of Compagnie des Ciments Belges in 2016. On a like-for-like basis revenue fell slightly, EBITDA fell more deeply and sales volumes of cement rose modestly in the period.
“Strong performance in the Scandinavian countries and Malaysia have substantially offset lower earnings in Turkey, Egypt and Italy. Also, group results have been negatively affected by the depreciation of the Turkish lira and, since the Brexit vote, the British pound, together with the fall in the value of the Egyptian pound and geopolitical events in Turkey and Egypt,” said Francesco Caltagirone Jr, chairman and chief executive officer of Cementir Holding.
Siam City Cement profits hit by purchase of new assets
14 February 2017Thailand: Siam City Cement’s profit in 2016 has been reduced by various costs including the purchase of Cemex’s assets in Bangladesh. The cement producer reported that its profit fell by 15% year-on-year to US$112m in 2016 from US$131m in 2015. Its sales revenue grew by 10% to US$977m from US$889m. In comments to the Nation newspaper, Siva Mahasandana, the cement producer’s chief executive officer, said the company's strategy to expand the business through key investments in Thailand and nearby regional countries had an immediate positive impact on sales. He added that the full benefit from its acquisitions were likely to be realised in 2017.
Germany: Langley Holdings, the UK-based owner of Claudius Peters, has reported that its subsidiary’s revenue fell by 14% year-on-year to Euro106m in 2016 from Euro124m in 2015. Claudius Peters’ orders on hand rose by 13% to Euro50.3m from Euro57.7m. The plant engineering manufacturer noted that the industries it serves, including cement and gypsum, remain at a ‘low point’ in their business cycle and that capital investment is low.
“The division’s order intake did improve in the final quarter and with commodity prices coming off the bottom there are signs that the climate is improving, although it is too early to call a recovery. In all, the results were satisfactory in a still much subdued sector,” said Langley Holdings chairman Anthony J Langley. He added that poor markets in Brazil and Russia affected the division’s results. However, Claudius Peters China performed ‘quite well’ due to export projects with Chinese contractors and divisions in France, the US, UK, Spain and Italy did well.
Cemex grows its profit in 2016
10 February 2017Mexico: Cemex has grown its profit in 2016, reporting that its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) has risen by 6% year-on-year to US$2.75bn from US$2.59bn in 2015. On a like-for-like basis adjusted for investments, divestments and currency fluctuations it rose by 15%. Its net sales fell by 3% to US$13.4bn from US$13.8bn, although on a like-for-like basis they rose by 4%. Sales volumes of cement remained stable at 66.7Mt. The company hailed a 10-year high in net income for 2016 and said that sales had increased on a like-for-like basis in the fourth quarter due to higher prices and higher volumes in Mexico, the UK and Germany.
“2016 was a very good year for Cemex. Despite continued volatility and uncertainty in the markets, we were able to deliver strong underlying operational and financial results by remaining focused on the variables that we control,” said Fernando A Gonzalez, chief executive officer of Cemex.
By region Cemex saw its net sales rise in both real-terms and on a like-for-like basis to US$2.86bn from US$2.84bn. It said that cement volume growth during the quarter and full year 2016 was mainly driven by the industrial and commercial, formal housing and self-construction sectors. In the US net sales remained static at US$3.67bn but they rose on a like-for-like basis. The company said that construction spending for the cement-intensive segments in the industrial and commercial sector grew by 1% in 2016, reflecting growth in the lodging and office segments, offsetting a decline in energy, agriculture and manufacturing. It also noted growth in the infrastructure spending in the last quarter of 2016 following the US presidential election.
In South and Central America and the Caribbean net sales fell by 9% to US$1.73bn from US$1.89bn. Cemex noted a flat market for cement sales volumes in Colombia in 2016 and high competition in a ‘soft demand’ market. In Europe net sales fell by 5% to US$3.3bn from US$3.43bn. Here, cement sales volumes fell in Spain and Poland through the year. However, sales volumes rose by 7% in the UK due in part to higher sales of blended cement that resulted from fly ash scarcity. Sales volumes in Germany remained flat in 2016 but the market picked up in the second half of the year supported by the residential sector. Finally, the group’s Asia, Middle East and Africa division reported that its net sales fell by 7% to US$1.54bn for US$1.65bn with a significant dip of 14% in sales volumes of cement in the fourth quarter of the year although volume remained flat in the year as a whole. The Philippines suffered from poor weather towards the end of the year although Cemex noted that cement demand weakened in the second half of the year in conjunction with the transition to a new government. In Egypt, government infrastructure spending drove cement demand.