Displaying items by tag: Results
Buzzi Unicem makes gains in first half of 2016
04 August 2016Italy: Buzzi Unicem’s sales have risen by 1.9% year-on-year to Euro1.26bn in the first half of 2016 from Euro1.24bn in the same period in 2015. Its cement sales volumes rose by 2.7% to 12.2Mt from 11.9Mt and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 33.5% to Euro223m from Euro167m. The group attributed the gains to sales volumes increases in all markets except Italy and Russia. Sales increases were particularly notable in the US and Poland.
Italcementi’s revenue falls slightly before takeover
03 August 2016Italy: Italcementi’s sales revenue has fallen by 2.1% year-on-year to Euro2.12bn in the first half of 2016 from Euro2.17bn in the same period in 2015. Its sales volumes of cement rose by 2.8% to 22.3Mt from 21.7Mt. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 44% to Euro177m from Euro316m. The cement producer blamed the revenue drop on negative currency effects, although sales volumes rose notably in North America. Its fall in EBITDA was attributed to group restructuring costs and an impairment on operations in Belgium for approximately Euro320m.
HeidelbergCement’s acquisition of Italcementi is expected to complete in the second half of 2016.
Peru: Cementos Yura’s income has risen by 10% year-on-year to US$141m in the first half of 2016 from US$127m in the same period of 2015. Its net income rose by 21% to US$29m from US$24m.
The Peruvian cement producer’s sales volumes grew by 11% to 608,923t of cement in the second quarter of 2016 mainly due to a rise in local demand. Clinker sales volumes remained stable. Yura increased its market share to 22.4% in the quarter from 20.4% in the same period in 2015. Peru's total domestic cement sales remained table at 2.33Mt.
Cementir presents mixed results in first half of 2016
01 August 2016Italy: Cementir Holding’s sales revenue has risen by 1.1% year-on-year to Euro481m in the first half of 2016 from Euro476 in the same period in 2015. However, its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 1.5% to Euro72m from Euro73.1 and its net profit fell by 53.7% to Euro11m from Euro23.9m. The group blamed the drop in profit indicators on exchange rate movements.
Sales volumes of cement for the building materials producer rose by 4.8% to 4.75Mt from 4.53Mt. Revenue grew in Scandinavian countries and in Malaysia, it remained stable in Turkey and it fell in Italy, Egypt and China.
Germany: HeidelbergCement’s sales revenue has fallen slightly by 1% year-on-year to Euro6.41bn in the first half of 2016 from Euro6.47bn in the same period of 2015. This was blamed on consolidation and exchange rate effects. Otherwise, profit rose by 46% to Euro354m from Euro242m. Clinker and cement sales volumes rose by 2.9% to 39.9Mt from 38.8Mt.
“In operational terms, the second quarter of 2016 was the best since the financial crisis and thus continued the positive trend of the previous year,” said Bernd Scheifele, Chairman of the Managing Board of the company. “The positive market environment in our mature markets and the recovery of demand in Eastern Europe made a significant contribution. We were able to raise the margins in operational terms in all business lines thanks to our margin improvement programmes and price increases in core markets. Furthermore, we have benefited from declining fuel costs.”
The group’s cement sales revenue fell by 3% to Euro2.92bn from Euro3.01bn. Its Northern and Eastern Europe-Central Asia and Africa-Eastern Mediterranean Basin areas both reported falling revenue from cement sales. However, the Asia-Pacific area saw its cement sales fall by 11% to Euro675m. Sales in North America partially offset this, with cement sales volumes growing by 4.7% to 5.9Mt from 5.6Mt.
HeidelbergCement reported that its acquisition of Italcementi is well on track with the subscription period for a mandatory tender offer to the remaining shareholders of Italcementi set to end on 30 September 2016. The entire takeover transaction is expected to be completed in the second half of 2016. HeidelbergCement also said that it had received ‘high’ interest for its assets on sale in the US. Binding offers are expected in the first half of August 2016.
Dangote to slow growth strategy as Naira devalues
29 July 2016Nigeria: Dangote Cement says that it will slow down its growth strategy in response to ‘challenging’ markets in Nigeria and the rest of Africa. Chief executive Onne van der Weijde made the comment in the Nigerian cement producer’s financial results for the first half of 2016. The group now intends to focus on a five-year building programme to better balance funding and investment.
Dangote Cement’s total revenue rose by 20.6% year-on-year to US$926m from US$768m in the same period of 2015. However, its earnings before interest, taxes, depreciation, and amortisation (EBITDA), a measure of operating profitability, fell by 10.2% to US$420m from US$468m.
“We have achieved a commendable result, given the very challenging situation in our main market and general economic weakening across Africa,” said Onne van der Weijde. “The devaluation of the Naira will obviously have an impact on costs and our priority will be to protect margins.” He added that the group was ‘optimistic’ that Nigerian infrastructure investment would soon increase demand for cement.
Dangote saw its sales volumes of cement rise by 59.5% to 13Mt from 8.1Mt. The bulk of sales, 8.77Mt, were in Nigeria, with fast increases in South and East Africa as operations in Tanzania started.
Greece: Titan’s turnover has risen by 7.6% year-on-year to Euro724m in the first half of 2016 from Euro673m in the same period in 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 13.5% to Euro120m from Euro105m. However, its net profit fell by 62% to Euro9.2m from Euro24.2m for the half-year period. The construction materials company benefited from growth in the US and Egypt but currency exchange rates, particularly in Egypt, hit its profits.
In the US Titan reported that sales revenue increased by 18.8% to Euro373m despite a long second quarter maintenance period at its Pennsuco cement plant in Florida. Turnover in Greece and Western Europe fell by 9.1% to Euro133.4m. In South-eastern Europe it rose by 6.7% to Euro97m. In Egypt turnover rose by 11.7% in local currency terms but fell by 0.6% in Euros to Euro121m. the group noted that in this country group plant production levels have reverted to levels similar of the pre-fuel crisis years. Coal mills have been implemented on both production lines at the Beni Suef plant since the end of March 2016 to reduce costs. Similar work at the Alexandria plant is on-going and will be completed by the end of 2016.
The group expects growth in the US to drive growth and profit for Titan in 2016 as a whole with support from an improved market in Egypt.
Jamaica: The Caribbean Cement Company’s net profit has risen by 21% year-on-year to US$832,000 in the first six months of 2016 from US$686,000 in the same period in 2015. Revenue grew by 10% to US$65.6m from US$59.4m. The rise in profit was attributed to increased revenue and reduction in costs but was tempered by stockholding, inventory restructuring and manpower restructuring costs. Cement export and clinker volumes fell by 8% and 77% respectively in the period despite the increases in revenue.
Cemex revenue falls slightly in first half of 2016
27 July 2016Mexico: Cemex’s sales revenue fell slightly year-on-year to US$6.88bn in the first half of 2016. Its net income rose to US$242m from a loss of US$31.6m. Its cement sales volumes rose by 2% to 33.6Mt from 32.9Mt.
“Our solid second quarter and first half 2016 results demonstrate the resilience of our portfolio, which is largely comprised of high-growth markets that are experiencing attractive supply-demand conditions,” said Fernando A Gonzalez, Chief Executive Officer of Cemex. The cement producer attributed the increases in sales in the second quarter to high prices overall and increased high sales volumes in Mexico, the US and Europe.
By region, Cemex reported a rise in cement sales volumes in all territories except Mexico. Here, cement volumes started to rise in the second quarter of 2016. The highest half-year increase in cement sales volumes was reported in the US at 7%, driven by residential and infrastructure activity.
Thailand: Siam Cement Group’s sales revenue from its cement and building materials division fell by 4% year-on-year to US$2.54bn in the first half of 2016. Profit for the half-year period fell by 11% to US$165m. The cement producer reported that Thailand’s total domestic cement demand decreased by 3% year-on-year in the second quarter of 2016 due to soft demand from non-government sectors.
Overall, Siam Cement Group saw a 2% fall in revenue across all business lines to US$3.11bn and a rise in profit by 18% to US$843m. It attributed the rise in profits to the performance of its chemical business.
“We see a bright future for markets across the region, with steady growth rates. Especially in Vietnam, demand for building materials and packaging has risen, on the back of the boom of construction industry, with several infrastructure, residential and industrial projects, as the country has become a key production base of the world. Cambodia also continues to see steady growth of its industries while Indonesia has also begun to see improvements in the economy, with construction of several government mega-projects. At the same time, trade around the borders of Thailand and neighbouring countries is also doing well,” said Roongrote Rangsiyopash, President and CEO of Siam Cement Group.