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Holcim sees 4.8% rise in net sales in first nine months of 2012 07 November 2012
Switzerland: Holcim Ltd has released its financial results for the first nine months of 2012, which show a 4.8% increase in net sales and over 10% year-on-year improvement in net profit. The group says that its results show the 'advantage of a strong presence in emerging markets, where construction activity remains high.'
Holcim says that its 'unique' geographic diversification has helped support it through a difficult time in its native Europe, allowing it to achieve an increase in consolidated sales of cement, often at better prices. Holcim's group companies in India, the Philippines, Indonesia, Russia, Thailand, Mexico and the USA recorded significantly higher cement sales year-on-year in the period under review. Its consolidated cement sales increased by 3% in the first nine months of 2012 to 111.4Mt.
Despite the difficult market situation in Europe, Holcim's consolidated net sales for the nine months increased by 4.8% to Euro13.4bn and operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 5.9% to Euro2.57bn. Its operating profit increased by 7.2% to Euro1.57bn. Holcim said that these results reflected the solid performance in a number of emerging markets, stronger demand for building materials in North America, improvements in efficiency and the first successes of the Holcim Leadership Journey. Holcim increased its net income by 10.3% year-on-year to Euro910m.
Holcim expects demand for building materials to rise in emerging markets in the whole of 2012 in Asia and Latin America, as well as in Russia and Azerbaijan. In North America, it expects that its cement volumes will also increase. In Europe however, sales volumes are expected to decrease in all business segments.
Holcim reiterated its stance that cost management, including the Holcim Leadership Journey programme, will be paid very close attention. It said that it will continue to pass on inflation-induced cost increases. Its approach to new investments will remain cautious. Holcim expects to achieve organic growth in 2012 on the level of operating EBITDA and to reap the first positive effects of the Holcim Leadership Journey in 2012.
Heroin found in Pakistan cement exports 07 November 2012
Pakistan: The Pakistan Railways, Custom authorities and All Pakistan Cement Manufactures Association (APCMA) have decided to tighten security arrangements at the border with India following reports that heroin has been smuggled into India disguised as cement exports from Pakistan. The decision was made during a meeting between the three organisations.
Indian custom authorities have caught heroin from Pakistan cement four times within the last few months, according to APCMA sources. Proposed measures to improve security have included deploying more custom officials at the loading stations, further checks by officials and special locks for railway bogies.
According to the APCMA, despite increased demand for cement in India, exports from Pakistan have declined by 15.7% so far in 2011. Pakistan Railways have commented that the decision to tighten security arrangements at the border have been taken to save the country from 'defamation'.
CNBM sees 40% decline in profit for first nine months of 2012 07 November 2012
China: China National Building Material Co (CNBM), a major State-owned cement producer in China, has reported a net profit of US$575m for the first nine months 2012, a year-on-year decrease of 40%. Operating revenue during the period rose by 7% to US$9.58bn. Net profit for the third quarter fell by 29% to US$271m, while operating revenue rose by 2% to US$3.46bn.
VICAT reports flat sales for first nine months of 2012 07 November 2012
France: Vicat has reported that its sales for the nine months ending 30 September 2012 remained flat year-on-year at Euro1.73bn. The French construction company reported sales of Euro879m for its cement business for the period, compared to Euro873m for the first nine months in 2011.
Consolidated sales for the third quarter of 2012 were Euro602m, a rise of 3.5% year-on-year. The breakdown of nine-month sales by business shows that the contribution of the cement business remained stable at 52.6% of total operational sales, as opposed to 52.5% in the first nine months of 2011.
"Vicat's performance in the first nine months of 2012 confirms the wisdom of the group's cautious development strategy. Investment under the 2010 performance plan and acquisitions in India and Kazakhstan enabled Vicat to achieve growth in business volumes in the third quarter, despite a macroeconomic environment that remains mixed," said Vicat's management board in a statement.
Vicat's cement business sales dropped in France, Egypt and West Africa. In France sales fell by 11.8% due to poor weather in early 2012, the end of some large projects and the weaker economic and industry environment. In Egypt consolidated sales fell by 30.3%. Operational performance in Egypt continued to be affected by problems with security and fuel supplies. Vicat's gas supply was cut off due to maintenance work on a pipeline, while the whole of Egypt experienced a serious shortage of fuel oil. Maintenance work completed in early October 2012. In West Africa consolidated sales fell by 6.7% and cement volume remained flat.
In the US the company's cement business posted an increase in its consolidated sales which were up by 21.1%. This increase was driven by strong growth in sales volumes in California and the Southeast region. In Turkey, India and Kazakhstan consolidated sales grew by 11.1%. This was the result of a sharp upturn in the market, which began in the second quarter and continued in the third.
In India, sales were Euro118m in the first nine months of 2012, a rise of 34.6%. Vicat maintained its strong performance in India, with the ongoing build-up of production at Bharathi Cement's modern plant. In the first nine months of 2011 cement volumes were almost 1.9Mt. In Kazakhstan, the build-up of operational and commercial activity at the Jambyl Cement plant continued. Revenue in the first nine months was Euro51m compared to Euro20m in 2011. This performance was driven by very strong volume growth, with more than 0.77Mt sold in the first nine months of 2012 as a result of major infrastructure and housing projects.
CSN plans 3Mt/yr expansion in Minas Gerais 07 November 2012
Brazil: Steel manufacturer CSN has announced plans to set up four cement assets in Minas Gerais state. The company wants to grow its current cement production capacity of 2.4Mt/yr to 5.4Mt/yr with an investment of US$491m.
CSN has proposed setting up three cement plants and a second clinker unit, adding to one at Arcos that began operations on May 2011. Currently the clinker unit at Arcos supplies 2500t/day the company's plant at Volta Redonda in Rio de Janeiro. The second clinker unit would expand this to 6500t/day, making it the largest clinker production site in Latin America.
Other cement companies investing in Minas Gerais state include Cimentos Liz's US$147m expansion to its capacity at plants in Vespasiano and Lagoa Santa. Holcim is growing the capacity of its plant in Barroso from 1.3Mt/yr to 3.5Mt.yr. Both Holcim and Cimentos Liz are receiving funding from the state development bank BDMG.