16 November 2020
Votorantim Cimentos reports 23% sales growth so far in 2020 16 November 2020
Brazil: Votorantim Cimentos’ consolidated net sales in the first nine months of 2020 were US$2.17bn, up by 23% year-on-year from US$1.76bn in the corresponding period of 2019. However, its profit fell by 61% to US$28.7m from US$73.9m
Cement sales in the third quarter of 2020 rose by 15% year-on-year to 9.7Mt from 8.4Mt in the third quarter of 2019. The company reported increased sales volumes in Uruguay, the US and Canada, and an 18% increase in Brazil, “maintaining the strong pace” recorded at the end of the first half of 2020. The company said, “The significant emergency aid from government during this period and its use in the direct purchase of construction inputs, including cement, has supported civil construction alongside the currently historically low interest rate. In addition, people continue to invest in improving their homes, with retail sales of building materials increasing nationally.”
The company’s third quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 94% to US$281m in 2020 from US$145m in 2019. It said, “The economic opening after the initial restrictions of the Covid-19 pandemic is turning out more positively than anticipated on the third quarter of 2020, while the on-going recovery is projected to be gradual, considering the uncertain scenario. Currently, global gross domestic product (GDP) is projected to decrease 4% in 2020 - less severely than the previously published data, although uncertainty around the recovery path for upcoming years due to second wave of Covid-19 remains considerable in some countries, alongside viability of additional fiscal and monetary stimulus.”
PPC wins immunity in South African competition probe 16 November 2020
South Africa: The Competition Tribunal has confirmed an agreement between PPC and the South African Competition Commission granting the company immunity from prosecution in an investigation allegedly involving price fixing and market sharing between local cement producers from 1995 to 2009. The Cape Times newspaper has reported that the ruling additionally granted the company immunity from related fines. PPC has reportedly agreed not to engage in price fixing or prohibited conduct in the future. The Commission said, "In addition, it will have to develop a competition law compliance programme."
AfriSam and Lafarge Industries South Africa paid fines related to the case. However, a case against Natal Portland Cement (NPC) was dismissed.
Bangladesh Securities and Exchange Commission investigates Aramit Cement’s interest-free loan to sister company 16 November 2020
Bangladesh: The Bangladesh Securities and Exchange Commission (BSEC) has written to Aramit Cement to seek an explanation for the company’s transfer of around US$9m as an interest-free loan to a sister company. The Dhaka Tribune newspaper says that the cement producer reported a loss in the financial year to 30 June 2020 and issued no dividend to its shareholders. However, had the company charged 10% interest on the loan, it could enabled the payment of a 20% cash dividend to shareholders. BSEC subsequently sought information on loans to associated companies.
Company secretary Syed Kamruzzaman said, “The board of directors would explain the issue to the BSEC soon.” The BSEC has ordered a refund of the loan along with interest by the end of November 2020.
US: Austin Quinn-Davidson, the acting mayor of Anchorage in Alaska, has announced that the city’s new cement and petroleum terminal at the Port of Alaska will be completed by late 2021. The Anchorage Daily News has reported that the estimated US$203m terminal will last for 75 years and be able to endure future seismic events like the earthquake that damaged the port in November 2018.
Municipal manager Bill Falsey said, “Even in these challenging times, we can still do big and important and challenging things.” He estimated the eventual total cost of an upgrade to the port would be around US$1bn.
Cementos Argos retains place in Dow Jones Sustainability Index 16 November 2020
Colombia: Cementos Argos is celebrating its inclusion in the Dow Jones Sustainability Index for the eighth consecutive year. The company said that the listing acknowledges its “good practices in economic, environmental and social matters.” Its owner Grupo Argos came second in the materials sector, which accounted for 4.3% of the total index weight, while the company itself came third. The index also highlighted it within the Latin American Integrated Market (MILA)-Pacific Alliance.
The company said, “One of the main advantages of this index is that it is a lever to promote cutting-edge business practices that seek to improve the impact of companies on society and the environment and, increasingly, to strengthen their relationship with different interest groups, whether they are communities, investors, suppliers, employees or authorities, among others.”