Displaying items by tag: Results
CRH reports 9% rise in sales in first quarter of 2016
27 April 2016Ireland: CRH has reported in a trading update that its overall sales rose by 9% year-on-year in the first quarter of 2016. By region it saw a 22% increase in the Americas, a 12% increase in Asia and no increase in Europe. No specific figures were released in the statement issued ahead of the company annual general meeting.
The Ireland-based construction materials producer’s Europe Heavyside division noted that cement sales volumes grew in the UK and Finland. Cement sales volumes were ‘broadly in line with 2015’ in Poland. In the Philippines CRH reported that cement demand was supported by strong foreign direct investment in the business process outsourcing sector, overseas workers' remittances and increasing government infrastructure spending.
CRH expects demand for its products to grow in the US and the Philippines in its outlook for the second half of 2016. In the US funding for infrastructure is expected to increase moderately with improving state finances and the passing in 2015 of the Fixing America's Surface Transportation (FAST) Act. It also expects residential and non-residential construction to grow.
China: Anhui Conch Cement’s net profit has dropped by 45% year-on-year to US$123m in the first quarter of 2016 from US$233m in the same period in 2015. Its revenue fell by 5.5% to US$1.63bn from US$1.73bn. It attributed the decreases in profit and sales revenue to falling prices.
India: UltraTech’s net profit has risen by 8% year-on-year to US$479m for its financial year that ended on 31 March 2016 from US$449m in the same period in the previous financial year. Its net sales rose by 5% to US$3.8bn from US$3.6bn. It reported that its portland cement sales volumes grew by 8% to 46.9Mt in the 2015 – 2016 financial year from 43.4Mt. It noted that its operating costs fell due to improved operational efficiency, a better fuel mix and a fall in fuel prices.
The Indian cement producer commissioned a 6MW waste heat recovery (WHR) system at Chittorgarh, Rajasthan during the January to March 2016 quarter. Overall, it generates 59MW from WHR. Since commissioning cement grinding plants at Jhajjar, West Bengal and Patliputra, Bihar the company’s cement production capacity is 66.3Mt/yr. It also signed a Memorandum of Understanding to buy cement plants from Jaiprakash Associates in late February 2016. The cement plants altogether have a total cement production capacity of 22.4Mt/yr.
In its outlook UltraTech expects cement demand to grow by up to 8% in the 2016 – 2017 financial year. This will be supported by government infrastructure and housing development.
China Resources Cement revenue falls by 24% to US$609m
25 April 2016China: China Resources Cement’s revenue has fallen by 24% year-on-year to US$609m in the first quarter of 2016 from US$800m in the same period in 2015. Its gross profit fell by 39% to US$126m from US$207m. However, its profit attributable to the owners of the company fell by 99% to US$0.85m from US$85.1m. It blamed the drop in gross profit on lower selling prices in the quarter compared to 2015.
The cement producer reported that its sales volumes of cement grew by 6% to 15.8Mt in the quarter. Rises in sales volumes were reported in Guangxi, Yunnan and Guizhou.
Lafarge Zimbabwe posts US$1.97m loss in 2015
25 April 2016Zimbabwe: Lafarge Cement Zimbabwe has reported a loss after tax of US$1.97m year-on-year in 2015. The company blamed it on a sub-optimal portfolio and price mix despite sales volumes growth. Its revenue grew by 2% to US$61.6m from US$60.5m and its cement sales volumes grew by 5%, according to the Herald newspaper.
The subsidiary of LafargeHolcim said that sales volumes were aided by its strategy of targeting distribution better supported by improvements in the local market. However, it added that sellers’ demand for discounts when buying in bulk have adversely affected cement prices. The cement producer expects prices to stay low in 2016 but it will aim for increased profits by cutting operational costs and increasing marketing.
Mexico: Cemex’s net sales have risen by 3% year-on-year to US$3.2bn in the first quarter of 2016 when adjusted for ongoing operations and for currency fluctuations. Its adjusted gross profit rose by 10% to US$1bn and its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 3% to US$583m before adjustment. The Mexico-based cement producer attributed the rising sales to higher prices and sales volumes increases in selected territories.
“We continue to see favourable results from the implementation of our value-before-volume strategy, with increases in sequential pricing in our three core products,” said Cemex chief executive Fernando A Gonzalez.
The company’s overall cement sales volumes rose slightly to 15.6Mt from 15.5Mt. By region, cement volumes rose by 8% in the US, by 3% in South American, Central America and the Caribbean and by 10% in Asia, Middle East and Africa. Volumes remained static in Europe and fell by 13% in Mexico.
Vietnam: Ha Tien 1 Cement has said that its net profit fell by 48% year-on-year to US$5.86m in the first quarter of 2016. It blamed the drop in profit on currency variations. Its net revenue rose by 9% to US$78m in the period.
China: Asia Cement’s revenue has fallen by 11% year-on-year to US$185m in the first quarter of 2016. Its gross profit fell by 45% to US$18m. The Chinese cement producer blamed the result on falling sales prices.
Taiwan Cement pins hopes on stronger second half of 2016
14 April 2016Taiwan: Taiwan Cement Corp has conceded that its business has remained weak since 2015. It hopes to see rise in sales in the second half of 2016 said Taiwan Cement chairman Leslie Koo in comments reported by the Tapei Times.
Cement shipments to China grew by 18% year-on-year to 10.8Mt in the first quarter of 2016 from 9.2Mt in the same period in 2015. Taiwan Cement senior vice-president Edward Huang said that overall demand for cement and clinker in 2016 should remain the same or improve from 2015. He citied transportation infrastructure projects in Taiwan and potential demand in China as measures for growth.
It expects cement production overcapacity to end in 2016 as the Chinese government continues to close cement plants. It also expects cement prices to start to grow again throughout the year based on price rises in the first quarter of 2016. The company plans to build four production lines in 2016. A new cement plant in Shaoguan, China, is expected to start production in the first half of 2017.
Taiwan Cement’s net income fell by 47% to US$178m in 2015 from US$334m in 2014. Sales dropped by 21% to US$2.89bn from US$3.65bn. It blamed the result on falling prices and demand in China due to oversupply of cement.
Kazakhstan: Steppe Cement has reported a fall in cement sales for the first quarter of 2016. Its sales revenue fell by 12% year-on-year to US$5.98m from US$6.79m in the same period in 2015. Cement sales volumes fell slightly to 190,000t from 193,000t. The company intends to regain market share and increase sales in the south of the country in the rest of the year.
Overall the cement producer said that the cement market in Kazakhstan decreased by 16% year-on-year in 2016. However, the market reduction slowed in March 2016. The company estimates that Kazakhstan’s cement market will reduce to 8.5Mt in 2016 from 9.6Mt/in 2015.