Global Cement News

China: Henan Tongli Cement Co Ltd, a Shenzhen-listed cement producer, said that its first half 2012 net profit rose by 8.6% year-on-year to US$15.2m. Its operating revenue dipped by 2.8% year-on-year to US$308m.

Meanwhile China Tianrui Group Cement Co Ltd, a Henan Province-based clinker and cement producer, said that it booked US$42.7m in net profit in the first five months of 2012, a plunge of 43% year-on-year. Its revenue dipped by nearly 6% year-on-year to US$485m.

Namibia: The recently-opened Ohorongo cement plant will be visited by Swaziland's King Mswati III next week as part of a visit to Namibia. The King, Africa's last absolute monarch, will spend five days touring the country with one of 14 his wives and two government officials.

Iran: The Khazar Cement Plant, one of the largest in Iran was forced to stop production for 10 days due to a dispute with truck drivers. The drivers had refused to transport cement at the rate that they had been paid by the Gilan Province Government. As the plant cannot store the cement it has produced, it had to be shut down temporarily. The drivers have now returned to work after accepting a 15% pay-rise.

The Khazar plant exports cement to Russia, the Republic of Azerbaijan, Iraq and Turkmenistan.

Peru: Cementos Lima, Peru's largest cement producer, has posted a second-quarter net income of US$20.3m, down from US$22.2m a year earlier. The company blamed an increase in its costs.

Lima's second-quarter revenue however, was up year-on-year to US$111.7m compared with US$98.0m a year earlier. The company said that its cement production in the quarter was 0.87Mt, an increase of 12.4% compared to that seen in the same quarter of 2011.

Mexico: Mexico's cement giant CEMEX has released its financial results for the second quarter of 2012. These show total consolidated net sales of US$3.9bn during the period, a 1% rise on a like-to-like basis compared to the second quarter of 2011. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 11% during the quarter to US$702m. On a like-to-like basis operating EBITDA increased by 22% in the same period.

Cemex attributed the increase in consolidated net sales on a like-to-like basis to higher prices in local currency terms in all of its regions. It reported that infrastructure and residential sectors were the main drivers of demand in most of its markets.

Net sales in Cemex's operations in Mexico decreased by 14% in the second quarter of 2012 to US$833m compared with US$968m in the second quarter of 2011. Operating EBITDA decreased by 4% to US$300m versus the same period of 2011. The groups's operations in the US reported net sales of US$795m for the quarter, up by 15% year-on-year. Here its operating EBITDA increased to US$27m, comparing favourably to a loss of US$17m in the same quarter of 2011.

In Northern Europe, net sales for the second quarter of 2012 decreased by 18% to US$1.10bn, compared with US$1.34bn in the second quarter of 2011. Operating EBITDA was US$122m for the quarter, a 19% fall from 2011. Second-quarter net sales in the Mediterranean region were US$384m, 20% lower compared to the US$477m taken during the second quarter of 2011. Operating EBITDA decreased by 23% to US$96m for the quarter compared to the same quarter in 2011.

Cemex's operations in South & Central America and the Caribbean reported net sales of US$529m during the second quarter of 2012, representing an increase of 20% over the same period of 2011. Operating EBITDA increased by 58% to US$189m in the second quarter of 2012 from US$120m in the second quarter of 2011. Operations in Asia reported a 10% increase in net sales year-on-year to US$142m compared to the second quarter of 2011. In this region its operating EBITDA was US$30m, up by 35% from the same period of 2011.

Fernando A González, Executive Vice President of Finance and Administration, said, "We are pleased with our 22% growth in operating EBITDA on a like-to-like basis, on back of a 1% growth in consolidated net sales. This is the highest EBITDA generation since the third quarter of 2009 and the fourth consecutive quarter with a year-over-year EBITDA increase. We are particularly pleased with the quarterly performance of our operations in the United States, South & Central America and the Caribbean and Asia regions."