Displaying items by tag: costs

Denmark: FLSmidth's cement business recorded 29% year-on-year sales growth to US$2.14bn in 2022, from US$1.66bn in 2021. The business' earnings before interest, taxation and amortisation (EBITA) totaled US$28.9m, compared to negative earnings of US$2.7m in 2021. During the year, its Americas region contributed 34% of sales, its Europe, North Africa and Russia region (subsequently Europe and North Africa) 26%, its Sub-Saharan Africa, Middle East and South Asia region 25% and its Asia-Pacific region 15%. Overall, FLSmidth's sales rose by 24%, while its EBITA fell by 8%, year-on-year.

The supplier said "Overall, our cement service showed strong performance throughout the year. In some countries, we did however start to see the first cases of budget constraints imposed to counter the increasing energy costs."

Looking forward to 2023's anticipated result, it noted a 'healthy' order pipeline, but an anticipated slow-down in producers' decision making. This is due to concerns related to energy volatility continuing the wake of the outbreak of war in Ukraine. FLSmidth concluded "The short-term outlook for the cement industry remains impacted by overcapacity, and the potential recession is expected to impact market demand negatively over the coming period."

Austria: RHI Magnesita reported revenues of Euro3.3bn throughout 2022, up by 30% year-on-year from 2021 levels. The refractories supplier's raw materials and shipping costs rose, but it was able to offset the rise by increasing its prices. The company said that this generated Euro600m in additional revenues, enabling it to maintain profitability 'through a challenging economic cycle.' It noted global volatility and uncertainty, which it expects to continue into 2023, for which it forecast a full-year drop in global cement demand. It expects 'strong growth' in India to offset any resulting decline in its sales in other markets.

RHI Magnesita CEO Stefan Borgas said "I am pleased to report growing progress on our mergers and acquisitions strategy, with acquisitions in India, China, Türkiye and Europe agreed or completed during the year. Whilst the outlook for 2023 is more uncertain than prior years due to slowing demand for refractories and softer pricing in certain regions, RHI Magnesita is able to face these challenges in a much stronger condition as a result of the implementation of its strategic cost savings and sales strategies over the past four years."

Switzerland: Holcim recorded sales of US$31.2bn during 2022, up by 8.8% year-on-year from US$28.7bn in 2021. Its recurring earnings before interest and taxation (EBIT) were US$5.08bn, up by 3% from US$4.93bn. The group's cement business recorded sales of US$17.5bn, up by 14% on a like-for-like basis. Its EBIT grew to US$3.53bn, up by 1% on a like-for-like basis.

In its Asia Pacific region, Holcim faced high cost inflation in India and reduced demand in China, but reported 'good performance' in Australia. In Europe, the group's cement volumes were ‘softer’ but 'strong pricing' offset cost inflation. It recorded 'strong profitable growth' in Latin America and 'over-proportional recurring EBIT growth' in Middle East - Africa and North America.

Chief executive officer Jan Jenisch said “As we enter 2023, we are continuing our fast pace. We’ve already made seven acquisitions in the first two months of the year, including Duro-Last, a roofing systems leader in the most attractive North American market. We also acquired German roofing leader FDT to expand our commercial roofing presence in Europe, as well as a range of bolt-ons across Europe and the US. I look forward to another year of continued profitable growth and fast-paced transformation, to become the global leader in innovative and sustainable building solutions.”

India: The price of imported coal ended December 2022 at US$145/t. The figure represented a 15% month-on-month drop from November 2022 levels. HT Media News has reported that the price is the lowest since the Russian invasion of Ukraine in February 2022.

Finance company IDBI Capital has forecast that earnings before interest, taxation and amortisation (EBITA) per tonne of cement by local cement producers will rise by US$2.66/t quarter on quarter during the fourth quarter of the 2023 financial year, which will end on 31 March 2023. This is partly due to an anticipated 10% year-on-year decline in coal and petcoke costs during the period, alongside a 10% rise in cement volumes projected over the same period.

India: Indian Railways has shared plans to establish dedicated rail corridors to supply raw materials to the cement sector. The Times of India newspaper has reported that the corridors will connect plants to sources of clinker, fly ash and limestone. Indian Railways says that the plans encompass ‘different parts of the country,’ and will be implemented over the 10-year period up to the end of the 2033 financial year. In addition to offering ‘better service’ and ‘attractive’ prices, the rail company will also carry out capital expenditure investments in order to maximise the volume of materials travelling on its cement corridors.

India: The state government of Himachal Pradesh has announced the forthcoming reopening of Adani Group's Darlaghat and Gagal cement plants. Reuters has reported that truck drivers' unions agreed to a reduced freight rate offered by Adani Group. The producer shut the plants on 15 December 2022, claiming that it faced prohibitively high operating costs, including high freight charges.

Truck drivers will now receive rates of US$0.12/t/km for despatches in small delivery trucks and US$0.11/t/km for dispatches in articulated trucks. Drivers operating at the Darlaghat cement plant previously earned fees of US$0.13/t/km, while those operating at the Gagal cement plant had earned fees of US$0.14/t/km. Adani Group had reportedly sort to lower rates to US$0.07/t/km. Unions have criticised the newly negotiated rates, pointing out the UltraTech Cement recently raised the wages of drivers at its Baga cement plant in the state to US$0.13/t/km.

India: Shree Cement recorded a 20% year-on-year rise in its consolidated sales to US$1.55bn in the first nine months of the 2023 financial year, from US$1.29bn in the first nine months of the 2022 financial year. The group's total expenditure rose by 36% to US$1.29bn from US$952m. Thus, Shree Cement recorded a 56% drop in net profit, to US$90.1m from US$203m.

US: Holcim has signed an agreement with Duro-Last to acquire the roofing systems producer for US$1.29bn. Reuters has reported that the acquisition will be Holcim's largest for all of 2022 and 2023 so far. Once the parties complete the transaction, Duro-Last's business will join Holcim's products and systems division. Holcim expects the deal to yield synergies of US$60m/yr, primarily through a reduction in the cost of materials.

Holcim expects its products and systems division to contribute a majority of its profit in North America once increased investment under the US government's Inflation Reduction Act begins to take effect. In 2022, the division accounted for 40% of regional profit. The group is committed to a global target of 30% of sales being attributable to the products and systems division by 2025, compared to 19% of sales in 2022.

India: JK Cement's consolidated sales were US$839m during the first nine months of the 2023 financial year, up by 23% year-on-year from US$682m during the corresponding period of the 2022 financial year. The producer's costs grew across all areas of expenditure, resulting in a net profit for the period of US$37.4m, down by 36% year-on-year.

JK Cement received approval for the issuance of up to US$12.1m in redeemable non-convertible debentures (NCDs) on private placement basis on 6 February 2023.

India: The state government of Himachal Pradesh says that it will take 'legal action' against Adani Group should it fail to reopen its Darlaghat and Gagal cement plants. The Times of India newspaper has reported that measures may include cancellation of the cement producer's relevant land leases. Out-of-work truck drivers agreed to cancel a state-wide road blockade in protest against the closures after the government promised a 'resolution' on 4 February 2022. It now plans to hold talks with Adani Group, in which it will relay truck drivers' offer of an 11% reduction in per-kilometre freight rates to US$0.12/t from US$0.14/t.

Himachal Pradesh industries minister Harshwardhan Chauhan said that the state government is empowered to take drastic measures in defence of Himachali people's interests.

Geological Survey of India (GSI) officials are reportedly investigating alleged illegal mining at the sites of the Darlaghat and Gagal cement plants.