Displaying items by tag: Mexico
Joint venture for Lafarge and Elementia in Mexico
09 January 2013Mexico: The French building materials giant Lafarge has announced a joint venture with new Mexican cement player Elementia, only a day after announcing that its UK joint venture with Tarmac received competition commission approval. The new joint venture formed will be held 47% by Lafarge and held 53% by Elementia, which will fully consolidate the venture's financial results.
The deal, announced on 8 January 2013, will see Lafarge contribute its two Mexican plants at Vito and Tula, which have a combined capacity of just under 1Mt/yr. Elementia will contribute its cement plant project, a 1Mt/yr installation, which is currently undergoing construction in central Mexico.
A Lafarge press release stated that the combination between Lafarge and Elementia would 'significantly' strengthen its position in Mexico. The transaction, which involves no cash and is subject to regulatory approvals, is expected to close in the second half of 2013, pursuant to the start up of the new Elementia plant.
Cemex recognised for carbon emissions reduction
02 November 2012Mexico: Cemex has been named by the Carbon Disclosure Project (CDP) as the best Latin American company in terms of climate change data disclosure and one of the top ten in overall carbon emissions performance.
The rankings were announced during the launching of the CDP's latest report, CDP Investor Latin America 2012, which comprises data on the emissions of greenhouse gases from 32 major companies in Argentina, Brazil, Chile, Mexico, and Peru. The CDP is a UK-based independent non-governmental organization that possesses the world's largest database of self reported climate change data.
According to data released by Cemex, the company achieved a 22.7% reduction on CO2 net emissions per ton of cement produced in 2011 relative to its 1990 baseline. Cemex's rate of alternative fuel use rose to approximately 25% in 2011, an improvement from its rate of 20.3% in 2010. Cemex is on track to reach its 2015 target of 35% alternative fuels substitution rate.
Grupo Cementos de Chihuahua reports Q3 13.3% sales boost
31 October 2012Mexico: Cement producer Grupo Cementos de Chihuahua has reported sales of US$197m for the third quarter of 2012, a rise of 13.3% year-on-year. Increased sales were driven by a growth in sales volumes in the US, higher aggregates and concrete block sales in Mexico and the effect of the Peso depreciation against the US dollar, according to the company's results report.
In Mexico sales were US$51m, a decrease year-on-year due to a reduction of consumption in the public infrastructure sector and the mining industry. Earnings before interest, taxation, depreciation and amortisation (EBITDA) were US$38.4m, an increase of 0.5% year-on-year. Net consolidated income for the third quarter of 2012 was US$11.7m, compared with a loss of US$3.36m in the same period in 2011.
Diverging fortunes in Europe and the Americas
17 October 2012News from Mexico and the US over the past week confirms the contrasting fortunes of the cement industry in the 'Old World' and the 'New World,' of Europe and North America. First, Cemex reported a significantly reduced loss of US$203m in its third quarter, compared with a loss of US$730m in 2011. However, the firm's European units again faired worse than other regions.
The European problem is not limited to Cemex, but while much of the continent has seen a poor 2012 so far, North America appears to be in the midst of a construction renaissance. HeidelbergCement estimates US cement sales growth of 8-11% in 2012. In Mexico, a strong and growing industry, it has also been announced that the Mexican billionaire Carlos Slim had partly financed a new US$300m plant in Mexico, due to go into production early in 2013.
In light of this apparent upward trend in North America, it is surprising that France's Lafarge has agreed to sell two more of its US cement plants, this time to Eagle Materials. If the Eagle deal is approved, it will represent (along with the May 2011 sale of Lafarge's Roberta and Harleyville plants to Cementos Argos) a continued and substantial reduction in Lafarge's presence in the US. In under 18 months, Lafarge will have offloaded four plants, taking its total from 12 to eight.
Lafarge's decision to sell to Eagle seems like an attempt to meet its own debt-reduction schedule. Yet to do this it may be losing important territory in North America. This can't have been an easy decision.
Mexican billionaire bankrolls new US$300m plant
17 October 2012Mexico: Mexican billionaire Carlos Slim and businessman Antonio del Valle have joined forces in a new cement venture in Mexico that plans to start operations in early 2013 with a capacity of 1Mt/yr.
Cementos Fortaleza, part of business group Elementia, is nearing completion of a plant in central Mexico at an investment of US$300m. In its initial phase the plant is expected to supply cement to retail users in central Mexico. The plant's first deliveries are expected in February 2013. Cementos Fortaleza will have an estimated 3% market share to begin with. It will compete with companies such as market leader Cemex and Holcim Apasco, a unit of Switzerland's Holcim.
Elementia Chief Executive Eduardo Musalem said at a press conference that Slim, through his company Grupo Carso SAB owns 46% of the Elementia and Del Valle 54%. Del Valle is one of the principal shareholders and honourary chairman for life of chemicals company Mexichem SAB.
Cemex loss reduced to US$203m in Q3 but over 1000 jobs to go
17 October 2012Mexico: Cemex has reduced its year-on-year net loss in the third quarter of 2012 due to steady sales and an increase in operating cash flow. However, the Mexican cement conglomerate has confirmed that over 1000 jobs will leave the company by December 2013.
The Mexican conglomerate reported a net loss for the quarter of US$203m, compared with a loss of US$730m in the third quarter of 2011. It noted a 13% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$730m from US$671m in the same quarter in 2011. Sales fell by 2% in dollar terms to US$3.9bn as a result of weaker currencies but rose by 2% from 2011 when adjusted for currency fluctuations. Consolidated cement sales volumes fell by 2% to 17.1Mt. Operating profit rose by 35% to US$410m.
"An improvement in pricing and volume in several of our regions as well as the continued success of our transformation effort has led to the highest operating EBITDA margin in three years," said Fernando Gonzalez, executive vice president of finance and administration.
Cemex generated EBITDA of US$27m in the US, a second consecutive quarter of positive cash flow in that market as sales rose by 12% from 2011 to US$826m. In Mexico, sales were 2% higher at US$875m, and EBITDA rose by 9% to US$313m. Sales rose in Central and South America and in Asia, although they were lower in both northern and southern Europe.
Gonzalez also said that IBM will be hiring around 450 Cemex workers, or 1% of its global staff, in a previously announced outsourcing deal. Another 675 people, or 1.5% of its workforce, will be made redundant. The staff downsizing is expected to be completed by December of 2013.
Cemex expects improved Q3
05 October 2012Mexico: Based on results for the months of July and August 2012 and preliminary estimates for the month of September 2012, the Mexican cement giant Cemex currently expects to report an improvement in its like-for-like net sales and earnings before tax, depreciation and amortisation (EBITDA) its 2012 third quarter results, on a consolidated basis.
Cemex expects that net sales for the quarter will decline by approximately 2%, although net sales on a like-to-like basis, which considers currency fluctuations, are expected to grow by approximately 3%. It expects its operating EBITDA to grow by about 9% and operating EBITDA, on a like-to-like basis, is expected to grow by approximately 13%.
The expected improvements are broadly in line with improvements seen in the first half of 2012 compared to the first half of 2011.
Cemex sees solid second quarter
20 July 2012Mexico: 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."
Cemex loss narrows in first quarter of 2012
26 April 2012Mexico: Mexican cement giant Cemex has reported that sales growth in its operations in the United States, Central and South America and the Caribbean helped it to narrow its first-quarter loss in 2012.
"The favourable performance in most of our regions leads us to believe that we are in the initial stages of a turnaround," said Fernando Gonzalez, Cemex's executive vice president of finance and administration, who added that the quarter marked Cemex's sixth consecutive quarter of top-line growth.
Sales rose by 4% year-on-year in the January-March 2012 period to US$3.5bn. Higher sales in the US helped compensate for weaknesses in Mexico and Europe, although the US operations were still a drag on operating earnings before interest taxes, depreciation and amortisation (EBITDA).
Cemex said its operating EBITDA rose by 7% on the year to US$567m. On a like-to-like basis for its ongoing operations and adjusting for currency fluctuations, operating EBITDA increased by 10%.
Cemex's net loss for the quarter was US$26m, narrower than a loss of US$229m loss a year earlier.
Cemex starts paying its tax backlog
14 March 2012Mexico: Cemex has paid 20% of the US$361m in taxes it owes the Mexican government, with the rest due in January 2013.
The company said it made a US$72m payment on 1 March 2012. It said it has an option to extend the January 2013 obligation and opt for 36 instalments instead, a move that would cost the company a bit more.
"Cemex thinks it has adequate provisions to meet the (tax) requirement," the company said in a statement.
In 2008 the Supreme Court overturned a ruling that protected Cemex from paying taxes linked to investments in offshore tax havens. The court cited several articles in Mexico's income tax law that required Mexican companies to pay taxes locally on investments in countries where there are no taxes or where levies are 75% lower than in Mexico.