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Kenya: Strong sales of cement and fertiliser have boosted Kenya's ARM Cement's pre-tax profit by 20% to US$13.68m in the first half of 2014. Total revenue jumped by 16% to US$86.6m, after cement sales rose by 10% in Kenya and by more than 33% in Tanzania. The improved sales were attributed to an improved distribution network.
"The east African regional economies are growing briskly and demand for cement, as well as the other products, are expected to grow further," said ARM. The company expects earnings to grow further in the second half of 2014, mainly due to improving margins driven by investments in its plants in Tanzania and Kenya.
ARM has invested a total of US$171m in a clinker plant in Tanga, Tanzania and a cement plant in Dar es Salaam, also in Tanzania. The plants have a combined capacity of 1.8Mt/yr. The investments have helped the earnings before interest, taxes, depreciation and amortisation (EBITDA) to hold steady at 24% in the first half of 2014, defying pressure from higher input costs, such as energy.
Algeria: Germany's Gebr. Pfeiffer SE has won a contract through the Chinese General Contractor CBMI to supply a MVR 6700 C-6 type cement mill and a MVR 6000 R-6 raw mill, both of which will be installed at the Lafarge cement works situated near the Algerian town of Biskra. The cement mill is the second-largest in the world after a mill supplied by Gebr. Pfeiifer to Holcim's Barosso plant in Brazil.
The cement mill, featuring Gebr. Pfeiffer's MultiDrive® concept with an installed total drive power of 9125kW, will produce 231-342t/hr of OPC ground to a product fineness of 3700-4800cm²/g according to Blaine.
The raw mill, which will come equipped with a conventional drive with an installed power of 6120kW, is designed to grind 680t/hr of cement raw material to a finished product fineness of ≤12% R 90 µm and 460t/hr of limestone to a product fineness of ≤1% R 150µm.
The delivery of the mills is expected in the summer of 2015.
Mexico: Cemex has announced its financial results for the second quarter of 2014, which show that consolidated net sales reached US$4.2bn during the second quarter of 2014, an increase of 4% compared to the comparable period in 2013. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 1% during the quarter to US$737m compared to the same period in 2013. On a like-for-like basis and adjusting for business days in its operations during the quarter, consolidated net sales increased by 5% and operating EBITDA increased by 3% versus the second quarter of 2013.
Cemex said that the increase in consolidated net sales was due to higher prices of its products in local currency terms in most of its operations, as well as higher volumes in the US and the Mediterranean, South & Central America and the Caribbean and Asia regions.
Fernando A González, Chief Executive Officer, said, "We are pleased with the year-to-date trends we have seen in volumes for our three core products and the continued success of our value-before-volume strategy. We expect improved performance from our Mexican operations during the second half of the year which should lead to stronger overall EBITDA generation for the full year 2014."
Breakdown by geographical area
Net sales in Cemex's operations in Mexico decreased by 4% in the second quarter of 2014 to US$816m, compared with US$847m in the second quarter of 2013. Operating EBITDA decreased by 1% to US$247m versus the same period of 2013.
Operations in the United States reported net sales of US$957m in the second quarter of 2014, up by 10% compared to the same period in 2013. Operating EBITDA increased to US$119m for the quarter, compared to US$80m in the same quarter of 2013.
In northern Europe, net sales for the second quarter of 2014 reached US$1.1bn, a 5% increase compared with the second quarter of 2013. Operating EBITDA was US$121m for the quarter, 12% higher than a year earlier.
Second-quarter net sales in the Mediterranean region were US$449m, 12% higher than sales of US$400m during the second quarter of 2013. Operating EBITDA increased by 6% to US$100m for the quarter versus the comparable period in 2013.
Cemex's operations in South & Central America and the Caribbean reported net sales of US$562m during the second quarter of 2014, remaining flat compared to the same period of 2013. Operating EBITDA was down by 16% to US$178m in the second quarter of 2014, from US$211m in the second quarter of 2013.
Operations in Asia reported a 2% decrease in net sales for the second quarter of 2014 to US$160m, versus the second quarter of 2013. Operating EBITDA for the quarter was US$34m, down by 11% compared to the same period of 2013.
Venezuela: Cemento Andino's Trujillo plant in Venezuela is set to undergo a US$240m capacity expansion. The plant currently produces around 600,000t/yr of cement. The construction of a new production line is expected to triple Cemento Andino's capacity. The project will take around two years to complete, generating around 500 direct and 1000 indirect jobs.
Croatia: Holcim Croatia is looking to post flat revenues in 2014, while hoping to raise them by 15% in 2015, according to the company's chairman Alan Sisinacki. Holcim Croatia currently operates one cement plant, two cement terminals, two concrete plants and three aggregates quarries.
In 2014 Holcim Croatia is hoping to cut its loss to Euro2.49m under its on-going '2015 Plus' programme, which should return the company to profitability in 2015. The turnaround plan is already yielding results, with Holcim Croatia posting an operating profit in the first half of 2014, the highest result over the last five years.
Sisinacki expects Holcim Croatia's cement sales to remain unchanged in terms of volume in 2014, with sales of aggregates also flat. The company's concrete sales are set to drop in terms of volume in 2014 due to the sale, closure or leasing out of a significant chunk of its unprofitable concrete-producing assets. Sisinacki said that his expectations for Holcim Croatia's 2014 performance are based on official statistical data showing a 4.0% year-on-year decline of building construction and 10% fall in other civil construction works in the first quarter of 2014 in Croatia.
During the first six months of 2014 cement demand dropped by 6.0%, according to data from the association of cement producers in Croatia. Market conditions in Slovenia and Italy, Holcim Croatia's biggest export markets, are not looking any better. Sisinacki said that Holcim Croatia is trying to offset this growth weakness by exporting to northern Africa, taking advantage of the cement plant conveniently located in the Koromacno port.