Displaying items by tag: US
Argos USA launches mixer fleet expansion and replacement plan
01 September 2022US: Argos USA has invested US$40m in 200 new ready-mix concrete mixer trucks, as the first phase of a five-year fleet expansion and replacement plan. The company says that the vehicles have a useful life of 8 – 10 years, or 53,500m3. It expects to make its next truck purchases in early 2023.
Argos USA ready-mix president Richard Edwards said "With the acquisition of these new assets, we continue our dedication to delivering extraordinary solutions to customers, helping facilitate the progress and development of the cities and communities where we have a presence. Our new trucks have a capacity of around 7.5m3 of concrete, are approximately 15% more fuel efficient than our previous trucks, and result in lower atmospheric emissions. They are also vehicles with the latest safety equipment, to continue ensuring the safety of our employees and everyone we share the road with daily."
North American market and building products division drives CRH’s sales in first half of 2022
30 August 2022Ireland: Strong sales revenue and earnings growth from CRH’s America Materials and Building Products divisions have driven its performance in the first half of 2022. The group’s total revenue rose by 14% year-on-year to US$15bn in the first half of 2022 from US$13.2bn in the same period in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 21% to US$2.21bn from US$1.82bn. Its sales revenue of cement, lime and cement products grew by 5% to US$2.47bn.
The group’s America Materials division reported an increase in sales revenue and EBITDA of 17% to US$5.55bn and 12% to US$820m respectively. Cement sales in the region grew by 15% although lower activity was noted in Canada. The group’s Europe Materials division reported an increase in sales revenue and EBITDA of 5% to US$5.43bn and 4% to US$609m respectively. However the company said that before sales and earnings in the region grew by 14% on a like-for-like basis. The group’s Building Products division - which supplies architectural products, infrastructure products and construction accessories – performed particularly well compared to the other sectors.
Albert Manifold, the chief executive officer of CRH, said “CRH has delivered another strong performance with further growth in sales, EBITDA and margin despite a challenging and volatile cost environment. This performance reflects the continued execution of our integrated and sustainable solutions strategy.”
Cemex Servicios Logísticos rebrands as Alliera
12 August 2022Mexico: Cemex’s North American logistics subsidiary Cemex Servicios Logísticos has changed its name to Alliera. Alliera will continue its 15-year tradition of operating as an independent third-party logistics company, serving customers across various industries.
Cemex Mexico president Ricardo Naya said “For Alliera, Cemex’s strategic priorities are ensuring our collaborators’ health and safety, sustainability and innovation. Within this package of priorities, we always seek growth, as we do now with Alliera, which is part of Urbanisation Solutions, our most recently created business branch.”
First half 2022 update on multinational cement producers
10 August 2022Second quarter results have been released for many of the European-based cement producers, so we’ll take a look at how they are doing so far in 2022. The general trend for the companies sampled here is that revenue is up, cement sales volumes are down and earnings are varied. Added to this, ready-mixed concrete (RMC) and aggregate sales volumes have risen for most of these organisations. Each producer did well in the US, less well in Europe and differently elsewhere. Concurrently, input costs for raw materials, energy and logistics have been rising and this has been passed on to consumers fairly consistently as price rises.
Graph 1: Sales revenue for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.
Graph 2: Cement sales volumes for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.
Graph 3: Ready-mixed concrete sales volumes for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.
Holcim is currently in a state of transition with responses from regulators on big divestments in India and Brazil expected in the second half of 2022 alongside its diversification into light building materials. Both North America and Europe did well for the group in the first half of 2022, particularly the former, where cement sales volumes rose, unlike the other regions. Asia Pacific was more problematic with inflation and pricing issues reported. Cement demand was also said to be ‘softer’ in China and the Philippines compared to the first half of 2021. The region’s recurring earnings before interest and taxation (EBIT) also fell.
HeidelbergCement’s half-year results were less upbeat with cement sales volumes down by 2.6% on a like-for-like basis, RMC sales volumes stable and aggregates sales volumes up by 1.7%. One point to note here is that HeidelbergCement divested its business in the western US in late 2021 and the graphs above do not show like-for-like changes. However, one reason for the dour tone was that higher input costs had led to a 11.4% drop in the group’s result from current operations before depreciation and amortisation (RCOBD) to Euro€1.53bn. It blamed this on its inability to raise prices sufficiently to counter ‘significantly’ higher costs of energy and transport.
Cemex benefitted from its strong presence in the Americas but even this wasn’t enough to shield it from the negative effect upon earnings of higher energy costs and supply chain disruptions. So, net sales increased in Mexico and the US but operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell. In Mexico this was blamed on a higher base for comparison in 2021. In the US a declining EBITDA margin was attributed to higher energy costs and supply chain headwinds from maintenance, imports and logistics. Interestingly though, Cemex managed to raise both sales and earnings in its Europe, Middle East, Africa and Asia despite cement sales volumes slipping. It said it was able to do this due to well executed price rises.
Buzzi Unicem reported growth in sales revenue and earnings despite falling cement sales volumes. It attributed this to a ‘strong’ increase in prices. However, it noted that the mounting energy costs had contributed to a decline in its EBITDA margin. Deliveries for the half-year grew in the US, Central Europe, Poland and the Czech Republic. They fell in Italy and, unsurprisingly, Ukraine. Also, despite the growth in deliveries in Poland and the Czech Republic in the reporting period, Buzzi Unicem said that a slowdown in Europe had become evident in the second quarter of 2022 and was particularly evident in Italy, Poland and the Czech Republic. In Ukraine the group reported that activity had resumed at its Volyn plant in the north-west of the country following the Russian invasion in February 2022. The Nikolayev plant, in the south, though continued to remain idle. Sales volumes halved in the country year-on-year. Given the circumstances it seems amazing that they didn’t fall by more frankly.
Finally, Vicat had a tougher time of it than some of the other companies featured here. Its sales revenue grew significantly, as a result of higher prices, but earnings tumbled. The latter was blamed on a high base for comparison in the first half of 2021 and the energy situation. A few non-recurring capital intensive projects at various plants, including the start-up of the Ragland plant’s new kiln in the US, didn’t help either.
Much of the above leaves an uncertain outlook for the second half of 2022. All of the cement producers here expect to increase their sales revenue and raise their prices. Most of them though are rather more circumspect or downright pessimistic about what the state of their earnings will be. The companies covered here are multinational but with a focus on Europe and the US. We have omitted plenty of regional producers elsewhere around the world in this roundup that have already published their results, such as India-based UltraTech Cement or Nigeria-based Dangote Cement. The other big market that is missing is China, where the producers are mostly yet to publish their half-year results. We will return to cover these topics in future weeks.
CalPortland to acquire Tehachapi cement plant
10 August 2022US: Taiheiyo Cement subsidiary CalPortland has concluded a deal with Martin Marietta Materials for the acquisition of the latter's Tehachapi cement plant in California for US$250m. The deal also covers two business centres.
Taiheiyo Cement said "We expect the US cement business to continue to have strong demand from the private sector in view of projected economic growth and chronic housing shortages going forward. Additionally, we expect the infrastructure demands to accelerate as a result of the passing of the more than US$1tn infrastructure investment bill by the US Congress. Further, California is likely to have even greater growth because it will host the 2028 Los Angeles Olympics. The planned acquisition of Martin Marietta Materials' assets is intended to ensure that we capture this increased demand. It is an essential element in maximising our future corporate value."
Colombia: Cementos Argos recorded sales of US$1.26bn in the first half of 2022, up by 13% year-on-year from US$1.11bn in the first half of 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 16% to US$221m from US$264m. The group's US sales accounted for 62% of its revenues during the six-month period. They rose by 5.4% year-on-year to US$776m from US$736m in the first half of 2021. Cementos Argos' US business' EBITDA fell by 25% to US$133m from US$177m. Colombia contributed sales of US$304m, 24% of group revenues, up by 15% year-on-year from US$263m in the first half of 2021.
Cementos Argos' first-half 2022 cement sales totaled 8.17Mt, down by 5.2% from 8.62Mt in the first half of 2021. Its US cement volumes fell by 1.2% to 3.06Mt, its Colombian cement volumes by 6.2% to 2.98Mt and its Caribbean and Central America cement volumes by 22% to 2.13Mt.
Chief executive officer Juan Estaban Calle said "We are convinced of the great opportunity that lies ahead to lead the industry in sustainability and generate greater value for our shareholders and all stakeholders. The calcined clay pilot that we are starting in the USA is another important milestone in our roadmap to produce carbon-neutral concrete by 2050. The results of the second quarter were very positive both in terms of revenue growth and volumes, driven, mainly, by the solidity of demand in the US and the good dynamics of the Colombian economy amidst a challenging situation of high inflation and increase in interest rates."
US: A team from Washington State University (WSU) and Pacific Northwest National Laboratory has successfully used waste crustacean shells in the production of concrete. ZME Science News has reported that the materials consist of calcium carbonate and 20 – 30% chitin, a nanoparticle biopolymer. When used as an additive in concrete production, the shells increase the set product’s compressive strength by 12% and its flexural strength by 40%. The team is now developing a methodology for the industrial-scale production of shell-based additives.
WSU researcher Professor Michael Wolcott said “Those are very significant numbers. If you can reduce the amount that you use and get the same mechanical function or structural function and double its lifetime, then you’re able to significantly reduce the carbon emissions of the built environment.”
Cemex Ventures invests in Zacua Ventures
05 August 2022US: Mexico-based Cemex Ventures has invested in construction sustainability early-stage venture fund Zacua Ventures. The producer says that other investors include Andres Construction, GS Futures, Progreso X and Sabancı Building Materials Group.
Cemex Ventures head Gonzalo Galindo said "As pioneers in the construction industry's transformation, we are happy to be part of this investment vehicle to seek innovative solutions that help boost productivity, sustainability and urbanization.” Galindo added “The collaboration and synergy between the involved partners will help further accelerate our efforts.”
GCC to expand Odessa cement plant
04 August 2022US: GCC plans to invest US$750m in an upgrade to its 0.9Mt/yr Odessa cement plant in Texas. The Milenio newspaper has reported that the upgrade will more than double the plant’s capacity to 1.9Mt/yr and lower its CO2 emissions per tonne of cement by 13%. GCC expects the new capacity to be operational by 2025.
The group said “GCC will carry out the project at the Odessa plant because the US market is developing faster and represents savings in freight compared to the plant located in Chihuahua, Mexico.”
Buzzi Unicem’s profitability drops except in Czech Republic and Russia in first half of 2022
04 August 2022Italy: Buzzi Unicem recorded a net profit of Euro88.7m in the first half of 2022, down by 58% year-on-year from Euro210m in the first half of 2021. The group said that its recurring profitability worsened across its markets, with the exception of Russia. It also noted ‘substantial stability’ in the Czech Republic. Its consolidated sales, including those of its Brazilian and Mexican businesses, were US$2.41bn, up by 18% from US$2.05bn.
The group recorded cement sales volumes of 14.2Mt, down by 4.1% from 14.8Mt. Volumes fell by 27% in Eastern Europe and by 28% in Italy, but rose by 27% in Central Europe and by 8% in the US. Excluding Russia, the producer’s fuel costs per tonne of cement rose by 8.8% year-on-year to approximately Euro8.80, and its total energy costs rose by 20% year-on-year to Euro234m.
It implemented continued price rises across all markets except Mexico during the half, with the sharpest rises recorded in Italy and Ukraine.