Displaying items by tag: Votorantim Cimentos

Brazil: Domestic demand for cement in Brazil is leading to an increase of imports. Imports of cement and clinker reached 2.2Mt from January to September 2011, an increase of 74% from the same period in 2010. The total value of imported cement cost USD135m from January to September 2011, compared with USD80m from the same period in 2010.

From 2007 to 2010 Brazilian per capita consumption rose from 224kg to 310kg while production rose from 40Mt/yr to 59Mt/yr. The country has 70 plants to meet this growing demand. Exports have fallen from 515,000t/yr in 2008 to 36,000t/yr in 2010.

Votorantim Cimentos leads the market with 40 plants and a production of 21Mt/yr. It currently plans to build eight plants by 2014 with investments of USD1.4bn, a sum that includes concrete units as well. CSN Cimentos is an emerging player in the market and it is planning to meet a production level of 8.4Mt/yr by 2013. Camargo Correa Cimentos runs 5.2Mt/yr and Joao Santos 5.9Mt/yr.

Brazil: Votorantim's overall operating performance improved in the first quarter of 2011 compared to the same period of 2010, with cement sales increasing. The group's consolidated net revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) amounted US$3.53bn and US$851m, an increase of 11% and 1% respectively. Ebitda margin declined from 26.5% to 24.0%, impacted by its cement and steel businesses.

The groups cement interests were negatively impacted in Brazil, as a result of the exchange of certain production plants for Cimpor shares in the third quarter of 2010. Nevertheless, sales volume increased by 1% in the country and by 2% in North America. Net revenues went up by 6% to total US$1.16bn, supported by a price increase in Brazil. EBITDA decreased from US$412m to US$312m mainly due to the exchange of certain production plants for Cimpor shares. In addition, EBITDA was also impacted by higher electricity and petcoke costs in Brazil and increased inventory in North America. Votorantim's total debt decreased by 1% by the end of the first quarter of 2011 compared to the first quarter of 2010, from US$14.06bn to US$13.93bn.

Capital expenditure amounted to US$690m, mainly for expansion projects and investment in cement accounted for 47% of the total.