Displaying items by tag: VICAT

France: Improvements in its French market have led to modest gains for Vicat in the first quarter of 2017. The group’s consolidated cement sales rose by 4.5% on an adjusted basis to Euro283m compared to the same period in 2016. Overall its sales rose by 1.4% on an adjusted basis to Euro554m. Its cement sales volumes rose by 1.2% year-on-year to 4.8Mt from 4.83Mt.

“France continued its progressive recovery, while the US posted further growth in its business. In Asia, a firm performance in India partly helped to make up for the business downturn in Kazakhstan and Turkey, where very difficult weather conditions took their toll. In the Africa and Middle East region, Egypt posted a strong top-line increase at constant scope and exchange rates, which made up for the decline in West Africa,” said group chairman and chief executive chairman Guy Sidos.

France: Sales in the US have supported Vicat’s revenue in 2016. Its consolidated sales in the US rose by 6.2% year-on-year to Euro363m in 2016 from Euro342m in 2015. Overall the company’s sales fell slightly to Euro2.45bn in the year, although they rose by 4.1% at constant scope and exchange rates. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 3.2% to Euro458m from Euro444m. Sales volumes of cement rose by 10.5% to 21.9Mt from 19.8Mt.

"Vicat performed well in 2016 against the backdrop of a very difficult geopolitical and monetary climate. Operating margins rose and results reflected the good sales momentum achieved by the group's staff, combined with a very firm grip on costs. The year was marked by renewed growth in Egypt and France, and our operations continued to improve in the US," said group chairman and chief executive officer Guy Sidos.

By region, notably, sales volumes rose in France by 6% in domestic and export markets, boosted particularly by export sales, with sales revenue up also. Elsewhere in Europe sales fell but volumes rose after a difficult first half of the year. Sales volumes in the US rose by 4% driven by ‘strong momentum’ in the Southeast region, making up for a decline in California caused by a strong previous year and poor weather. In the group’s Asian region its sales revenue fell mainly due to currency variations in Turkey and particularly in Kazakhstan. Finally, in its African and Middle East region, sales revenue in Egypt rose by 3.5% despite a devaluation of the local currency driven by a ‘sharp’ increase in volumes. Two coal grinders that entered into service in late 2015 also helped to grow its EBITDA.

France: Vicat’s sales revenue has fallen by 0.9% year-on-year to Euro1.87bn in the first nine months of 2016 from Euro1.88bn in the same period of 2015. However, its cement sales volumes rose by 10% to 16.6Mt from 15.1Mt. It noted that negative currency effects had affected its results.

“Excluding currency effects, our sales during the period were boosted by further growth in the US, improvement in the French market and a rebound in the markets in India, Egypt and Kazakhstan. In Turkey, business trends remained brisk in spite of recent events. In West Africa, the strong performance recorded in Senegal helped to partly offset the decline in Mauritania. Lastly, the temporary slowdown in our business in Switzerland held back the Europe (excluding France) region,” said the group’s chairman and CEO, Guy Sidos.

LafargeHolcim was the last major European cement producer to release its second quarter financial results last week. The collective picture is confused. Cement sales volumes have risen but sales revenue have fallen.

Most of the producers have blamed negative currency effects for their falls in revenue during the first half of 2016. Holding a mixed geographical portfolio of building materials production assets has kept these companies afloat over the last decade but this has come with a price. The recent appreciation of the Euro versus currencies in various key markets, such as in Egypt, has hit balance sheets, since the majority of these firms are based in Europe and mostly use the Euro for their accounting. Meanwhile, sales volumes of cement have mostly risen for the companies we have examined making currency effects a major contributor.

Graph 1 - Changes in cement sales volumes for major non-Chinese cement producers in the first half of 2016 compared to the first half of 2015 (%). Data labels are the volumes reported in 2016. Source: Company reports.

As can be seen in Graph 1, sales volumes have risen for most of the producers, with the exception of LafargeHolcim. Despite blaming shortages of gas in Nigeria for hitting its operating income, LafargeHolcim actually saw its biggest drop in sales volumes in Latin America by 13.2% year-on-year to 11.8Mt. The other surprise here was that its North American region reported a 2.7% fall to 8.8Mt with Canada the likely cause. Vicat deserves mention here for its giant boost in sales volumes due to recovery in France and good performance in Egypt and the US, amongst other territories.

Graph 2 - Changes in sales revenue for major non-Chinese cement producers in the first half of 2016 compared to the first half of 2015 (%). Data labels are the sales reported in 2016. Source: Company reports.

Overall sales revenue for these companies presents a gloomier scenario with the majority of them losing revenue in the first half of the year, with most of them blaming negative currency effects for this. Titan is included in this graph to show that it’s not all bad news. Its growth in revenue was supported by good performance in the US and Egypt. Likewise, good performance in Eastern Europe and the US helped Buzzi Unicem turn in a positive increase in its sales revenue. They remain, however, the exception.

Looking at sales revenue generated from cement offers one way to disentangle currency effects from performance. Unfortunately, only about half of the companies looked at here actually published this for the reporting period. Of these, LafargeHolcim reported a massive rise that was probably due to the accounting coping with the merger process that finalised in 2015. Of the rest - HeidelbergCement, Italcementi and Vicat – the sales revenue from each company’s cement businesses fell at a faster rate than overall sales. Like-for-like figures here would help clarify this situation.

Meanwhile, a mixed global patchwork of cement demand is focusing multinational attention on key countries with growing economies like Egypt and Nigeria. Both of these countries have undergone currency devaluation versus the Euro and are facing energy shortages for various reasons. The exposure of the multinational cement producers to such places may become clearer in the second half of the year.

France: Vicat’s sales revenue from cement has fallen by 1.5% year-on-year to Euro761 in the first half of 2016 from Euro773m in the same period in 2015. The group has blamed the decline on a fall in selling prices in most of its market regions except for the US. It was also hit by negative currency effects in relation to the high value of Euro. Overall, Vicat’s sales fell by 0.4% to Euro1.24bn but its EBITDA rose by 2.3% to Euro208m.

Despite this, its cement sales volumes rose by 12.1% to 11.1Mt from 9.88Mt. Volume increases were noted in India, Turkey, Egypt, France, the US and, to a lesser extent, by Kazakhstan, Italy and West Africa. Switzerland was the only country to record a fall in sales volumes of cement the first six months of the year. Alongside this the construction materials company reported that its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 3.3% to Euro168m from Euro163m. It noted particular profit indicator gains in Egypt, due to sales volumes growth and lower energy costs following the commissioning of two coal mills in the second half of 2015 and increased prices and sales volumes of cement in the US.

“The Vicat Group delivered a good performance in the first six months of the year. The positive trends from the first quarter continued, with our business growing across most of our markets, with especially renewed growth momentum in France and in Egypt,” said Guy Sidos, the group’s chairman and CEO.

France: French multinational cement producer Vicat Group has reported on its cement sales for the three month period to 31 March 2016. A release from the company stated that ‘firm’ activity was observed in all of its regions apart from West Africa, with improvements in France, Egypt and Turkey relative to the prevailing poorer trends seen in 2015. This was buoyed by continued improvements in India and the US.

Vicat reported that its sales increased by 3.3% on a reported basis and by 6.5% at constant scope and exchange rates in the first quarter of 2016 relative to the same period of 2015. Cement sales totalled Euro291m, exactly matching the prior year period in reported terms but 5% up at constant scope and exchange rates. Consolidated sales across all activities came to Euro554m. In terms of cement volumes, the situation was much improved, with a 13.8% rise year-on-year to 4.83Mt.

"Vicat delivered solid growth in its business in the first quarter of the year,” said Vicat’s CEO Guy Sidos. “It is important to remember that sales in France and Turkey were boosted by significantly better weather conditions than in 2015 and are not representative of what can be expected for the full year.”

“The first few months of the year also confirmed the strong momentum in the
Turkish and US markets as well as the upturn in business in France seen since
the second half of 2015,” added Sidos. “In the rest of Europe, sales were up slightly in Switzerland and stable in Italy at a historically low level. In India, the market was boosted by the start of some large infrastructure projects, supporting the group's business in this region. Lastly, West Africa and the Middle East delivered a contrasting performance, with a very sharp pickup in business in Egypt offsetting a decline in West Africa, in particular in Mali and Mauritania.”

In France, Vicat’s sales came to Euro183m, an 8.9% year-on-year improvement. Cement sales in the country were up by 10.9%. In the rest of Europe (excluding France), overall consolidated sales were up marginally to Euro81m and operational sales derived from cement activities were down by 8.6%, although sales in Switzerland rose by 3.8%.

The US saw a 9.5% improvement in consolidated sales across all activities. In the cement sector, sales were markedly up by 18.4% in revenue terms and by 14% in volume terms.

In Vicat’s Asian region, which includes Turkey, India and Kazakhstan, consolidated sales were down by 2.4% year-on-year to Euro115m. Vicat recorded 20.4% growth in cement operational sales and volumes were up by almost 29%. This was, in part, thanks to better weather conditions than in 2015. There was significantly higher growth in the Ankara region of Turkey, boosted by the restart of one kiln and the commissioning of a second. Vicat’s Indian sales came in at Euro68m and Kazakhstan brought in Euro4.7m.

Vicat’s African operations were split in terms of performance. Egypt performed strongly, with consolidated sales of Euro33m, a 14.5% year-on-year rise for the quarter. However, this was not enough to offset a 7.4% fall in sales in West Africa, which restricted regional consolidated sales to Euro96m, a 2.6% fall year-on-year.

France: The Vicat group has today reported that its sales, at constant scope and exchange rates, fell by 4.4% in 2015. Reported sales rose slightly, by 1.5% year-on-year to Euro2.46bn in 2015, compared to Euro2.43bn in 2014. Cement sales fell by 0.4% to Euro1.26bn from Euro1.26bn.

"The sales growth achieved by the Vicat group in 2015 again reflected a contrasting picture from one region to another. Business momentum in the United States and Asia helped to offset the impact of a more challenging macroeconomic and competitive environment in West Africa and the Middle East, as well as in Europe. Notably, the group's activity returned to growth in France in the fourth quarter, helped by a positive weather effect and a stabilising industry environment," said the Group's Chairman and CEO, Guy Sidos.

By region, Vicat noted falls in sales in its cement business in France and Europe.
This decline was blamed on a volume contraction and a slight decrease in average selling prices. Sales in the US grew by 23.6% on a like-for-like basis in 2015 due to high volumes, strong momentum in the south-eastern US and price increases. Sales in Asia grew by 3.1% on a like-for-like basis driven by increases in Turkey and India despite a decrease in Kazakhstan. Notably, Vicat reported that its sales rose in India, despite falling volumes due to price increases. Sales in Africa and the Middle East fell by 16.6% on a like-for-like basis, mainly due to a steep fall in business in Egypt.

Reported sales volumes in cement fell by 3.6% to 19.8Mt in 2015 compared to 20.5Mt in 2014.

France: Vicat's sales in the first nine months of 2015 grew by 1.9% year-on-year to Euro1.88bn. In the third quarter of 2015, its sales grew by 1.7% to Euro640m on a reported basis and declined by 3.7% at constant scope and exchange rates. Vicat reported robust business trends in the US, activity growth in Asia underpinned by Turkey and India, a reduced down-trend in France and lower activity in West Africa and the Middle East.

"Vicat's third-quarter performance still reflects a contrasting picture from one region to another, but there were signs of improvement in certain markets," said Vicat's Chairman and CEO. "Strong increases were recorded in the US and Turkey, while volumes in India returned to growth in a still favourable pricing environment, and, lastly, our production unit in Kazakhstan ran at full capacity in a market nevertheless affected by a strong currency devaluation. In France, the shortfall compared with 2014 declined significantly in the cement business over the past quarter and the market currently appears to be gradually stabilising at an historically low level for French cement consumption. Against this backdrop, Vicat remains focused on its objectives of maximising its cash flow and reducing its debt, while leveraging the efficiency of its manufacturing facilities, its geographical diversification and its strong positions in its local markets."

Kazakhstan: The Kazakh Vice Minister of Investment and Development of Kazakhstan Albert Rau has met with President of Vicat Group Guy Sidos and honorary president of the group Jacques Merceron-Vicat to discuss the operation and possible extension of Vicat's existing production plant at Zhambyl. The meeting also announced the construction of a US$10m terminal in Astana in 2016. The terminal will also act as a packing plant, research and testing centre.

Turkey: Loesche has delivered and is currently installing a LM 45.4 raw meal mill ordered by Vicat Service Technique Ciment for Bastas Baskent Çimento in Elmadag in May 2014.

The Loesche LM 45.4 vertical roller mill will grind 260t/hr cement raw meal at a product fineness of 16% R90μm. The installed drive power is 2100kW. Loesche's scope of supply includes weigh feeders, apron feeders, magnetic separators, metal detectors, shut-off and control flaps, vibrating conveyors, a bucket elevator and expansion joints. The commissioning of the new mill is scheduled for the third quarter of 2015.