Global Cement News
Search Cement News
Boral reports 73% jump in half year profit 12 February 2014
Australia: Boral has reported that its half year underlying net profit jumped by 73% on the back of improved housing and road construction markets, cost cutting measures and dry weather conditions. The company saw its underlying net profit rise to US$81.5m in the six months to 31 December 2013. However, the company also warned of a slowdown in activity and earnings in the second half of the financial year, which runs until 30 June 2014.
Boral actually recorded a net loss of US$23.6m for the half year but this figure includes US$106m in one-off accounting charges related to its gypsum plasterboard joint venture, due to be completed on 28 February 2014, which it says will be offset by gains in the second half.
Chief executive Mike Kane highlighted a US$20.8m turnaround in the Australian building products division and a 6% lift in its largest division, building materials and cement.
"The rise was driven by strong project activity, very dry weather conditions in New South Wales and Queensland and the benefit of restructuring and overhead cost reduction initiatives," said Kane. "Despite expected underlying performance improvements, there will be a skew of earnings to the first half compared to the second half due to higher major project volumes, dry weather conditions in the first half and the impact of the gypsum joint venture."
The company achieved US$54.7m in cost savings, much of which came from cutting 1000 jobs. Boral plans to use much of a US$453m payment from its gypsum partner USG to reduce its US$1.26bn net debt.
Lafarge ordered to halt coke use in Egypt 12 February 2014
Egypt: Lafarge has been ordered by the Ministry of State for Environmental Affairs (MSEA) to halt its preparations to build storage units for petcoke, according to a statement by the ministry. The MSEA expects the French cement manufacturer in Egypt to wait for a final decision on the use of petcoke as fuel in industrial operations.
France-based multinational cement producer Lafarge submitted a study to MSEA on the environmental impact of petcoke in May 2013 and awaits a government decision on its use. The MSEA does not allow cement factories to import coal, citing hazards to the environment and the economy. The cement industry consumes 9% of the total amount of natural gas produced in Egypt, after the electricity and fertiliser sectors. The switch to coal was first suggested as an alternative to gas when the government announced plans to gradually remove gas subsidies.
Ciments Français revenue down 3.6% to Euro3.59bn in 2013 12 February 2014
France: Ciments Français has reported that its total revenue fell by 3.6% year-on-year to Euro3.59bn in 2013 from Euro3.73bn in 2012. Like its parent company Italcementi, It blamed the drop on continued disruption in demand for building materials in Western Europe, with problems in Egypt and an uneven recovery in North America.
Overall sales volumes for cement and clinker fell by 3.8% to 37.9Mt. Sales revenue for cement and clinker fell by 4.8% to Euro2.39bn. By region, Western Europe and Emerging Europe, North Africa and the Middle East saw sales volumes decrease in 2013 and North America and Asia saw sales volumes increase. However sales revenues fell in all regions except Asia in 2013. In particular Ciments Français' revenue report mentioned Egypt's role in reducing sales volumes in 2013 in the Emerging Europe, North Africa & Middle East region due to fuel shortages.
ACC net income drops to US$1.75bn in 2013 12 February 2014
India: ACC's net income has fallen slightly to US$1.75bn in 2013. However its net profit rose by 3% to US$174m. By business segment, cement sales fell slightly to US$1.71bn in 2013. The Indian cement producer made the announcement in a statement of consolidated audited financial results. In its statement ACC made no provision for a US$180m fine imposed on it by the Competition Commission of India for alleged cartel-like behaviour as it believes it can successfully appeal the penalty.
Italcementi revenue down 5.4% to Euro4.24bn in 2013 12 February 2014
Italy: Italcementi has reported that its revenue fell by 5.4% year-on-year to Euro4.24bn in 2013 from Euro4.48bn in 2012. It blamed the drop on a continued fall in demand for building materials in Europe, a patchy recovery in North America and limited energy availability in Egypt that has decreased cement production capacity.
Sales volumes of cement and clinker fell by 6% year-on-year to 43.1Mt in 2013. Revenue for the company's cement and clinker segment fell by 6.4% to Euro2.72bn from Euro2.91bn. By region sales volumes fell by 9.3% to 14.5Mt in Central Western Europe and by 11.7% to 13.2Mt in Emerging Europe, North Africa and the Middle East. Its North America and Asia regions remained buoyant in terms of sales volumes in 2013 but North America saw its revenue fall by 2.5% to Euro429m.