Displaying items by tag: weather

Mexico: GCC’s results for the first half of 2019 have been negatively affected by poor weather in the US. Its net sales grew slightly by 1.3% to US$404m from US$399 in the same period in 2018. Sales fell in the US but they rose in Mexico. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 5% to US$109m from US$115m.

“While GCC’s US operations continued to be adversely impacted during the second quarter by an above average precipitation, below-average temperatures and construction labour shortages, the substantial backlog at our US operations underscores strong demand for our products. We’ve begun to reap the benefits early in the third quarter, as the US weather has finally cleared,” said Enrique Escalante, GCC’s chief executive officer (CEO). He added that the group had ‘successfully leveraged’ its new Trident plant in Montana and improved production levels at its Rapid City plant in South Dakota following a stabilisation process. Oil well cement shipments from its Chihuahua Plant to new terminal at Fort Stockton in Texas have also started.

US: Eagle Materials has blamed falling sales from its Heavy Materials sector, including cement, concrete and aggregates, on ‘unusually’ wet weather. Its revenue from this market fell by 1% year-on-year to US$677m in the year to 31 March 2019 from US$685m in the same period in 2018. Cement sales volumes dropped slightly to 5.34Mt and concrete volumes by 12.5% to 0.8Mm³. Its operating earnings decreased by 10% to US$177m. Overall, the company’s sales and earnings grew slightly boosted by sales from its gypsum division.

Nepal: Cement producers including Narayani Cement, Kalash Cement and Bishwokarma Cement have reported damage from a heavy thunderstorm that has hit the south of the country. At least 30 people were killed in the bad weather and other 600 people were injured, according to the Kathmandu Post newspaper.

Umesh Chandra Thakur, manager at Narayani Cement, said the storm had knocked down walls, a roof and power lines at the plant, leading to a halt in production. Kalash Cement also reported that the roof of its plant had been blown off. The storm has also caused widespread disruption to the electricity distribution system in Bara and Parsa districts.

Sweden: Cementa says it is has supply problems delivering its Bascement product. The delivery issues have been caused by frequent power cuts to its Slite plant, weather-related delays to its shipping schedule and high cement demand. The subsidiary of Germany’s HeidelbergCement said that it was keeping its customers regularly updated.

Colombia: Falling sales at home have reduced Cementos Argos’ sales so far in 2018. Its revenue decreased by 1.8% year-on-year to US$1.99bn in the first nine months of 2018 from US$2.03bn in the same period in 2017. Its sales volumes of cement declined slightly to 12.1Mt. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6.1% to US$355m from US$330m.

“It´s been a year full of challenges and opportunities in which we have been focused on the strengthening of our value proposition, looking forward to be a strategic ally for our clients´ projects; improving the competitiveness of our operations through the execution of BEST, ensuring we have the financial flexibility to mitigate market risks, taking advantage of growth opportunities and becoming a leaner, more innovative and sustainable company for the years to come,” said Juan Esteban Calle, chief executive officer (CEO) of Cementos Argos.

By region, revenue fell by a little in the US and cement sales volumes remained stable. This was blamed, in part, on the negative effects of Hurricane Florence on its market in the Carolinas in the third quarter and on falling prices. Revenue and sales volumes were down in Colombia due to a poor market although this started to recover in the third quarter, notably with improving earnings. In the Caribbean and Central America region its revenue and sales volumes increased, lead by growth in the Dominican Republic, Puerto Rico and the Eastern Caribbean. Despite this, EBITDA margin fell due to decreased despatches in Honduras and Panama.

Italy: Buzzi Unicem’s net sales rose remained stable at Euro2.14bn in the first nine months of 2018 compared to Euro2.13bn in the same period in 2017. Its cement sales volumes grew by 3.1% to 20.9Mt from 20.3Mt. Its market in the US was strongly affected by unprecedented rainfall, notably in September 2018, and activity in Ukraine was also lower. Net sales in the US dropped by 61% year-on-year to Euro791m in the third quarter of 2018 and sales in Ukraine decreased by 9.7% to Euro63.6m. Sales rose in most other areas, with an emphasis on growth in Italy and Europe.

Greece: Titan Group’s turnover fell by 3.7% year-on-year to Euro1.10bn in the first nine months of 2018 from Euro1.14bn in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 8.2% to Euro196m from Euro215m. It attributed this to wet weather on the eastern seaboard of the US. It said that production ‘challenges’ at the group’s Florida operations forced it to increase imports to its terminal at Tampa to meet customer demand, although this lowered its margins.

Philippines: Around 4500 bags of cement have been salvaged from the MV Star Liberty that ran aground in early September 2018. The ship ran aground at the San Jose de Buenavista Port due to the strong waves caused by the southwest monsoon, according to the Philippines News Agency. The ship was carrying a consignment of 20,000 bags at the time. The salvaged cement has been stored at a dump in Barangay Pantao. The salvage team are hoping to complete the removal of the cement from the ship by the end of October 2018 and then the ship may be transported back to Cebu for repairs.

Philippines: Cemex Holdings Philippines (CHP) is running an assessment to see how a local government order to stop mining operations in Naga will affect its business. APO Land & Quarry has been requested to stop quarrying operations in Naga City, Cebu following landslides, according to the Philippine Star newspaper. APO Land & Quarry supplies raw materials to CHP’s subsidiary Apo Cement, and it is indirectly 40% owned by Mexico’s Cemex.

India: Gujarat Sidhee Cement has temporarily suspended operations at its Sidheegram plant in Gujarat due to heavy rain. It said that suspension was a ‘precautionary measure.’ All operations of the kiln and upstream equipment has been stopped. However, cement grinding and despatch will constine to operate.