Displaying items by tag: Results
China: Huaxin Cement has warned that its net profit is likely to drop by up to 95% year-on-year for the first half of 2016. The Chinese cement producer reported a net profit of US$13.3m in the same period in 2015. It has blamed the situation on a ‘serious’ doemsti cement overcapacity and fierce competition in the main markets that led to the price of cement falling by 11.52%. Adverse weather also contributed to the decline.
US: Eagle Materials’ sales revenue from cement has risen by 19% year-on-year to US$116m in the first quarter of its 2017 financial year, which ended on 30 June 2016, from US$98m in the same period in 2015. Overall company revenue rose by 1.5% to US$298m from US$285m. Cement sales volumes rose by 4% to 1.25Mt from 1.20Mt.
India: UltraTtech’s net sales have risen by 4% year-on-year to US$937m for the quarter that ended on 30 June 2016 from US$935m from the same period in 2015. Its net profit rose by 29% to US$116m from US$90m in the same period. During the quarter the cement producer has commissioned grinding plants at Nagpur in Maharashtra and Patliputra in Bihar. The company also confirmed that its acquisition of cement plants from Jaiprakash Associates is continuing.
Kazakhstan: Steppe Cement’s sales volumes rose by 6% year-on-year to 762,000t in the first half of 2016 from 718,000 in the same period of 2015. However, its sales revenue fell slightly to US$24m from US$25m. The cement producer also reported that its local market share increased to 18% in the first half of 2016 from 16% and it exported 4% of its sales compared to 0% in 2015.
The cement market in Kazakhstan decreased by 10% during the first half of 2016 compared to the same period of 2015. However overall cement shipments from local companies remained stable compared to 2015 as imports decreased by 63% (representing 5% of the local market) and exports doubled due to the favourable exchange rate against the currencies of surrounding countries. Steppe Cement estimates that national consumption will be around 9Mt in 2016.
TCC International Holdings issues profit warning
07 July 2016China: TCC International Holdings expects to swing to a loss in the first half of 2016, compared to a net profit US$10.5m in the first half of 2015.
The Hong Kong-listed cement producer said that the expected loss was due to lower selling prices for its cement products and a foreign-exchange loss from its US Dollar-denominated bank borrowings as a result of a weak Chinese currency. It will release interim results in August 2016.
South Africa: PPC’s revenue has fallen slightly, by 1% year-on-year, to US$293m in the first six months that ended on 31 March 2016 from US$296m in the same period in 2015. The group’s operating profit fell by 3% to US$47.7m from US$49.2m. It attributed the fall in revenue to lower selling prices of cement in South Africa and falling revenues in Zimbabwe and Botswana.
By business line, PPC’s cement division in South Africa reported that its revenue fell by 5% to US$155m. It noted that cement volumes improved ‘marginally’ due to sales volume growth in the coastal regions following reduced imports and demand from infrastructure projects. However, inland provinces such as a Gauteng and the Limpopo area were negatively affected to increased competition. Outside of South Africa its cement division’s revenue rose by 6% to US$85.5m. Despite sales declines in Zimbabwe and Botswana, the group’s new 0.6Mt/yr plant in Rwanda was commissioned in the second half of 2015.
The group’s lime division also reported that its revenue in all territories fell by 12% to US$24.9m.
The group also provided an update on its on-going projects. A US$280m 1Mt/yr cement plant in the Democratic Republic of the Congo was reported 83% complete in March 2016 with ‘hot’ commissioning scheduled for late 2016. A US$85m cement mill in Harare, Zimbabwe was reported 70% complete in March 2016 with plant commissioned planned for the end of 2016. Finally, a US$170m 1.4Mt/yr cement plant in Ethiopia remains scheduled to be commissioned in the second quarter of 2017.
Brazil: InterCement’s sales have fallen by 28% year-on-year to Euro454m for the first quarter of 2016 from Euro637m in the same period in 2015. Its cement and clinker sales volumes fell by 11.2% to 6.03Mt from 6.79Mt. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 36.2% to Euro77.9m from Euro122m. The group blamed the falling sales on construction market contraction in Brazil and negative currency effects in certain territories.
The Brazilian-based cement producer reported sales volumes declines in most countries it operates in. Cement and clinker sales volumes fell by 17% to 2.27Mt in Brazil, by 34.8% to 0.73Mt/yr in Portugal and by 7.1% to 1.41Mt in Argentina. However, volumes rose by 26.3% to 0.37Mt in Mozambique and by 2.8% to 0.32Mt/yr in South Africa. Overall sales volumes declines were attributed to the political instability, economic problems in Brazil and decreased exports from Portugal to Algeria due to issues with import licences.
India Cements revenue falls by 5% to US$636m
26 May 2016India: India Cements revenue has fallen by 5% year-on-year to US$636m for the financial year that ended on 31 March 2016 from US$663m in the same period in 2015 - 2016. Its net profit rose to US$20.5m from US$4.39m.
In the notes provided with its annual financial results the Indian cement producer reported that its was appealing against a provisional attachment order under the Prevention of Money Laundering Act (PMLA), 2002 attaching certain assets of the company for a value of US$17.9m. It also noted that according to the condition imposed by Board of Cricket Control in India, India Cements provided a guarantee for the purpose of guaranteeing performance and compliance by Chennai Super Kings of the obligations of the franchise under the agreement. The Chennai Super Kings cricket team was suspended for two years in mid 2015 due to a corruption scandal.
Australia: Martin Brydon, the chief executive officer of Adelaide Brighton, has said that the company’s cement and clinker sales volumes in 2016 will be similar or slightly lower than in 2015. He made the comments at the building materials company’s annual general meeting.
Cement and clinker markets were reported to be stronger in South Australia, New South Wales, Victoria and Queensland; and weaker in Western Australia and the Northern Territory. Adelaide Brighton’s cement sales are expected to improve in east coast markets. Cement sales generated 47% of Adelaide Brighton's revenue in 2015.
Adelaide Brighton has raised prices across all products in 2016 due to strong demand and raised costs of imports due to a weaker Australian dollar.
Kazakhstan: Steppe Cement revenue has fallen by 20% year-on-year to US$93.6m in 2015 from US$117m in 2014. However, its cement sales volumes rose by 2% to 1.64Mt from 1.61Mt. The company reported that its 2015 results were adversely affected by a devaluation of the Kazakhstan Tenge and the US Dollar. It also noted a net loss of US$3.4m in 2015 due to a foreign exchange loss of US$16.4m.
The cement producer expects that market demand in the country for cement will be stable or decrease slightly in 2016. This will depend on government investment plans and the general economy. It also hopes to regain its market share of 19% after falling to 17% in 2015.