Displaying items by tag: Results
LafargeHolcim’s cement sales up by 15.3% in Romania
26 November 2015Romania: LafargeHolcim's cement sales in Romania rose by 15.3% year-on-year in the first nine months of 2015, supported by building activity in the Bucharest area, although market prices fell by 0.8%.
"Demand in Eastern Europe remained strong in the non-oil exporting markets. Most countries reported increased volumes with strong increases across all three segments in Romania thanks to strong building activity in the Bucharest area," said a statement from LafargeHolcim.
LafargeHolcim has decided to sell the assets of one of the parent companies in Romania, Germany and Hungary. In Romania, the assets up for sale are those of Lafarge.
Switzerland: In the first nine months of 2015, LafargeHolcim reported a fall in net sales, adjusted operating earnings before interest, taxes, depreciation and amortisation (EBITDA) and cement sales volumes.
LafargeHolcim's net sales fell by 0.6% year-on-year on to Euro20.4bn at constant exchange rates and its adjusted operating (EBITDA) fell by 3.2% on a like-for-like basis to Euro4.02bn in the first nine months of 2015. In the third quarter of 2015, Latin America and Asia Pacific (excluding China and India) continued to see positive trends, while the Middle East and Africa experienced more difficult conditions. Overall net sales in the quarter fell by1.1% on a like-for-life basis to Euro7.22bn. Adjusted operating EBITDA was down by 8.9% on a like-for-like basis to Euro1.51.
Sales volumes in all product lines declined slightly in the first nine months of 2015 due to lower than expected demand in a number of markets impacted by an economic downturn, notably in Brazil and China, as well as a lack of infrastructure projects in India. In the third quarter of 2015, volume trends stabilised and countries such as Argentina, Mexico, the Philippines and the UK continued to perform well. In the US, where the market recovery is well under way, LafargeHolcim is increasing capacity through revamping and reopening plants. On a pro forma basis, consolidated cement volumes fell by 1.3% to 189Mt in the first nine months of 2015 as increased shipments in North America and Latin America were offset by declines in Europe and in China. Solid increases were, however, reported in many markets, including in Egypt, Mexico, Philippines, Canada and the US. In the third quarter of 2015, cement sales volumes grew by 0.2% year-on-year to 65.3Mt.
"In this quarter we kick-started the integration process to have the right organisational structure, action plans and people in place to ensure the success of the merger," said Eric Olsen, CEO of LafargeHolcim. "On 1 December 2015 we will present the new company's first three-year plan, including a clear roadmap on how we plan to achieve our new targets, one of which is a cumulative 2016 - 2018 free cash flow generation of at least Euro9.23bn. This plan will come into effect on 1 January 2016 and will become the benchmark against which we will measure LafargeHolcim's performance, including management incentive plans."
"The first nine months of 2015 and in particular the third quarter were impacted by the difficult economic context in some of our large markets and considerable negative foreign exchange fluctuations. In addition, the closing of the merger triggered both one-off costs and organisational changes, the benefits of which will start coming through in 2016. At the same time, we have also seen solid market trends that, combined with our commercial efforts, led to good performance in several countries such as Argentina, Mexico, the Philippines, the UK and the US. We have started laying solid foundations for the new company on which we will build the future success of LafargeHolcim. I am confident in our ability to deliver on the announced synergies and thanks to disciplined capital allocation and superior execution we will outperform our sector. We will maximise cash flow and create sustainable value with the focus on returning excess cash to shareholders while continuing to provide our customers with world-leading innovative products and solutions."
LafargeHolcim expects that the contrasted evolution of the global economy will continue. A number of markets including China, Brazil, France, India and Switzerland will remain challenging, others such as Argentina, Mexico, the Philippines, the UK and the US will likely see continuing positive trends. The group has estimated that cement volumes will be higher for 2015 in all regions except Europe.
According to Dow Jones, LafargeHolcim plans to raise Euro3.23bn in 2016 from selling off cement assets around the world. The company has started discussions with interested parties, including private-equity firms and industry rivals about some of the assets, with the proceeds set to be returned to shareholders through dividends or share buybacks, according to Olsen. "We have a position of number one, two or three in 70% of our markets," said Olsen. "Where we don't have that position, we are looking at divesting or swapping assets."
Cementos Argos expects US$2.61bn revenue in 2015
25 November 2015Colombia: Cementos Argos has reported that it will reach US$2.61bn in revenue in 2015. Revenue was US$1.86bn in the first nine months of 2015, a 35% year-on-year increase. Colombia represented 88% of Cementos Argos' revenue in the nine months.
Votorantim posts a US$22m net loss in the third quarter of 2015
24 November 2015Brazil: Votorantim Industrial, Brazil's largest industrial conglomerate, has posted a net loss for the third quarter of 2015 due to the impact of a deep economic recession and rising US Dollar debt-servicing costs after a currency plunge, according to Reuters.
Votorantim posted a net loss of US$22m, down sharply from a profit of US$155m a year earlier. Earnings before interest, taxes, depreciation and amortisation fell by a third to US$429m from a year ago, when Votorantim booked one-time earnings from an energy auction. The Brazilian Real fell to an all-time low in the third quarter of 2015, driving up Votorantim's gross debt by US$1.88bn to US$8.06bn at the end of September 2015.
Chief Executive Officer João Miranda highlighted investments outside of Brazil as the country suffers its sharpest economic contraction in 25 years. "In the face of Brazil's economic recession, our diversified business and international presence become even more important in delivering consistent results," said Miranda. Votorantim's capital spending rose by 55% to US$246m in the quarter, half of which was intended to expand capacity, particularly at cement plants outside of Brazil.
Australia: James Hardie's adjusted net operating profit for the second quarter of its 2016 fiscal year, which ended on 30 September 2015, was flat at US$65.3m and up by 12% for the first half of the year to US$129m. The quarterly result was affected by a higher adjusted income tax expense and higher gross interest expense offsetting the favourable operating performance. Half year sales were up by 2% to US$879m.
CEO Louis Gries said that all business units had performed well, driven in particular by its USA plants and lower input and freight costs. He said that primary demand growth in its USA business had again tracked below its targeted level. The company will focus on lifting its USA primary demand growth rate back up over the next several quarters.
The company expects its USA and Europe fibre cement segment earnings before interest and taxes (EBIT) margin to be towards the higher end of its stated targeted range of 20 - 25% for its full 2016 fiscal year.
In other news, James Hardie has re-opened its Queensland, Australia fibre cement manufacturing facility following a US$64m expansion. It said that the expansion of Carole Park, near Brisbane, will boost Australian capacity by 40% to meet strong domestic demand. "At a time of decreasing investment in manufacturing in Australia, James Hardie's US$64m investment in this new facility reflects our confidence in our Australian business, the future of manufacturing in this country and the underlying economy of Australia," said Gries.
Cimpor’s net loss grows in third quarter of 2015
19 November 2015Portugal: Cimpor has reported that its net loss grew by 52.5% year-on-year to Euro26.7m in the third quarter of 2015. The quarterly loss follows a general trend for the year as a whole. Sales volumes, revenue and profit are all down for both the third quarter and the year. The InterCement subsidiary has blamed the result on the slowdown of the Brazilian economy.
Cement and clinker volumes fell by 9.7% year-on-year to 7.07Mt in the third quarter of 2015. Sales revenue fell by 11.8% to Euro625m. Earnings before interest, taxes, depreciation and amortisation fell by 32.5% to Euro116m. For the first nine months of 2015, cement and clinker volumes fell by 7.2% to 21.1Mt. Sales revenue fell slightly by 1.2% to Euro1.93bn. EBITDA fell by 14.2% to Euro396m. Net loss grew by 90.2% to Euro33.7m.
By geographical area, Cimpor suffered from reduced demand for cement in Brazil due to the poor economy, along with increased competition and higher thermal costs. Elsewhere, some slowing has been observed in Africa in the third quarter as a result of one-off situations in Egypt, where an intensification of competition has lead to a fall in market prices, and Mozambique, where profitability was restricted by local energy limitations and the increase of costs pegged to the dollar.
Lafarge Malaysia profit jumps by 28% to US$16m in third quarter
19 November 2015Malaysia: Lafarge Malaysia has seen its profit rise by 28% year-on-year to US$16m for the third quarter of 2015. The boost has been attributed to higher sales revenue from its cement segment, improved plant performance, and higher foreign exchange gains. Overall revenue grew slightly to US$155m for the quarter. Lafarge Malaysia commented that the outlook for the construction sector remains positive in 2015.
Increased competition eats into PPC’s earnings
18 November 2015South Africa: PPC has reported a 3% fall in cement revenue to US$526m in the first nine months of 2015, although group revenue grew by 2% year-on-year to US$645m. The decline in the cement business was blamed on increased competition.
"The Mpumalanga area was the hardest hit, with double-digit volume declines. The north-west region, although also under pressure, showed some resilience," said PPC in a statement.
Company CEO Darryll Castle said that improved performance from the company's operations in Zimbabwe and Botswana had offset the declines experienced in the core South African cement business. He said that projects in Africa would ensure that shareholders had a 'diversified portfolio of businesses in different geographies.'
Shree Cement's net profit jumps by 18%
17 November 2015India: Shree Cement's net profit rose by 18.3% year-on-year to US$19.5m in the quarter that ended on 30 September 2015 and its total income increased by 6.79% to US$265m.
Sagar Cements reports 3% rise in October 2015 production
17 November 2015India: Sagar Cements cement production in October 2015 rose by 3% year-on-year to 96,247t and its cement sales rose by 7% to 99,918t.