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Votorantim posts a US$22m net loss in the third quarter of 2015 24 November 2015
Brazil: 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.
Sindh to establish ‘zero-pollution’ cement plants 23 November 2015
Pakistan: Sindh, a Province of Pakistan, has claimed that it will establish cement plants based on new technology with 0% pollution and low energy consumption.
The Sindh government has signed Memorandum of Understanding (MoU) with Sinohydro Corporation and Deer International Group. It will bring US$250m of foreign direct investment, create 2500 new job opportunities, generate tax revenue of US$28.4m/yr, improve peripheral economic investment and offer top quality and cheaper cements to fulfil the demand of infrastructure projects. Chairman of Deer International Group, Qaim Ali Shah, said that since Sinohydro Corporation was the world's largest water conservancy and Hydro Power Construction Company, it could efficiently exploit the indigenous resources available at Sindh.
Caribbean Cement shareholder demands probe of operating lease to TCL 23 November 2015
Caribbean: Michael Subratie, a minority shareholder of Caribbean Cement Company (CCC), has asked the Jamaica Stock Exchange (JSE) to investigate whether the operating lease paid to parent Trinidad Cement Limited breaches accounting rules.
Subratie is contending that the operating lease over the cement plant's assets, which are owned by TCL, distorts its profits and stifles shareholder value, that it appears to contravene Generally Accepted Accounting Principles - GAAP - and should be replaced with a finance lease arrangement.
Caribbean Cement last paid a dividend in 2005, amounting to a total distribution of around US$9.34m at US$0.01/share. Subratie holds just over four million CCC shares in his own name and is now the tenth-largest shareholder of the operation with a 0.48% stake.
In 2014, Caribbean Cement paid US$377m to TCL as an operating lease. For 2015, it is projecting payments of US$364m. In 2015 – 2018, the plant expects to pay US$87m to TCL under the lease agreement. New rates will be negotiated for January 2019 to December 2028.
"The operating lease arrangement seems completely unfair to the minority shareholders as the true situation seems to be that of a finance lease as the equipment leased are permanent structures and equipment located at CCC in Jamaica," said Subratie. He is also contending that amounts already paid by Caribbean Cement, combined with the payments scheduled to 2018, more than equal the cost of equipment and structures.
Under operating lease contracts, the owner permits use of an asset for a particular period, which is shorter than the economic life of the asset, without any transfer of ownership rights. A finance lease is a commercial arrangement where the lessee pays a series of rentals or instalments for the use of the asset and has the option to acquire ownership.
Caribbean Cement has two operating lease agreements with TCL, covering kiln 5 and cement mill 5. Those structures were part of an expansion programme financed by TCL from external sources. The operating lease charge is accounted for on Caribbean Cement's financial statements as an expense. Without that expense, Caribbean Cement's earnings before interest, taxes, depreciation and amortisation (EBITDA) would be boosted by around US$31,386/yr.
TCL owns 74% of Caribbean Cement and, as the situation now stands, it is the only shareholder benefiting from payouts from the Rockfort plant, said Subratie.
thyssenkrupp launches new brand identity 23 November 2015
Germany: In the future, thyssenkrupp will use one common brand the world over. The redevelopment of the brand reflects the transformation of the technology company to a diversified industrial group.
"thyssenkrupp has changed in recent years. We are a different company today. We have become more diversified and, as a result, more stable," said Heinrich Hiesinger, CEO of thyssenkrupp. "However, we are not yet perceived everywhere as the high-performance industrial group we are and want to become even more. That's why we decided to redevelop the brand," said Communications Chief Alexander Wilke.
The new brand puts a stronger focus on customers. It communicates the company's positioning as a diversified industrial group and its aspiration to work in an integrated way, leveraging internal synergies and creating added value for customers, employees and shareholders. The new branding is based on a survey of more than 6000 customers, employees, applicants, investors, works council members, public figures and consumers.
The new brand condenses what thyssenkrupp stands for in a logo, a slogan and new colours. "But these are only the visible elements of our brand. At its core is our brand promise – because it places the focus on customers and says how we want to advance them," said Wilke. "The new brand does not mean that we have reached the end of our transformation. But it is designed to give a further boost to our change process both inside and outside the company," said Hiesinger.
Over 180 different brand identities currently exist side-by-side within the group. The single brand will create a unified image among customers and employees. thyssenkrupp will introduce the new brand gradually and in accordance with the company's financial situation. Service vehicles, trucks used by the logistics unit, office stationery, work clothes, among others, will only appear in the new brand look when they would normally have been replaced at the end of their service lives.
Lafarge Malaysia buys Holcim 23 November 2015
Malaysia: Lafarge Malaysia Bhd has bought Holcim Sdn Bhd from PT Holcim Indonesia in a deal worth US$71.2m.
"With this merger, our installed cement capacity will rise to 14.1Mt/yr from 12.9Mt/yr through the combined strength of three integrated cement plants, two grinding stations, over 40 ready-mix concrete batching plants and six aggregate quarries," said Lafarge in a statement. Lafarge Malaysia has now become part of LafargeHolcim.