September 2024
Dangote reports US$1.33bn sales so far in 2012 06 November 2012
Nigeria: Dangote Cement has reported a pre-tax profit of US$674m for the nine months ending 30 September 2012, a rise of 13.5% compared to the same period in 2011. The company's sales revenue increased to US$1.33bn, a rise of 19.8%. The cessation of lower-margin imports and their replacement with locally-produced cement has helped to reduce the cost of sales, but the potential gains in margin were largely offset by increased use of furnace oil at higher-than expected levels during 2012.
In its unaudited results for the first nine months of 2012 Dangote reported that cement sales were 7.7Mt, with all cement sold produced locally. In spite of these achievements, the company said the third quarter sales were seriously affected by heavy rainfall and flooding but that margins were rising as gas supplies return to normal. Serious flooding affected Kogi and Benue states in the third quarter of 2012 where two Dangote plants are located.
"In spite of these problems we have increased sales by nearly 20% in the first nine months of 2012, with sales of locally produced cement rising by nearly 51%. Even in the difficult third quarter we increased shipments by nearly 8% during a period in which we estimate the industry increased volumes by less than 4%, so it is clear we are increasing our market share," said chief executive of Dangote Cement, Devakumar Edwin.
Dangote Cement is Nigeria's leading cement producer with three plants in Nigeria and plans to expand in 13 other African countries. The group is a fully integrated quarry-to-depot producer with an expected production capacity of 19Mt/yr in Nigeria by the end of 2012, increasing to as much as 35.25Mt/yr by 2015. The group plans to build a further 19Mt/yr of production and import capacity across Africa by 2015.
Dyckerhoff reports flat 2012 so far 05 November 2012
Germany: Dyckerhoff Group has released financial results for the first nine months of 2012 showing cement volume increases in Russia, Ukraine and the US, which have been balanced by volume declines in Germany and western Europe.
Cement sales volumes remained flat in the first nine months of 2012 at Euro1.24bn, compared to 1.22bn in 2011. By region, sales in Germany and western Europe fell by 7% to Euro588m from Euro633m. Sales in eastern Europe rose by 7% to Euro487m from Euro456m. Sales in the US rose by 24% to Euro160m from Euro129m. Group earnings before earnings before interest, taxes, depreciation and amortisation (EBITDA) were Euro232m in 2012, compared to Euro231m in 2011.
"For 2012 as a whole, we continue to expect the level of group sales and results to remain stable compared to 2011," said CEO of Dyckerhoff AG, Wolfgang Bauer.
Cemex recognised for carbon emissions reduction 02 November 2012
Mexico: 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.
China's cement industry faces vast overcapacity say NDRC official 01 November 2012
China: China's cement industry is facing massive overcapacity despite a recovery in output in September 2012, said Liu Ming, an official of the National Development and Reform Commission (NDRC).
By the end of 2011, a total of 1513 cement works were operating in the country, with a total cement output of 2.3Bt. According to Liu, 210 new cement works are either under construction or to be opened. Once they are all in operation, the nationwide cement output is expected to reach 2.8Bt/yr.
The official said that China would strictly control new production capacities, raise the thresholds for access to the industry, promote mergers and acquisitions in the industry, and eliminate outdated production capacities.
In the first nine months, China's total cement output reached 1.591Bt, an increase of 6.7% year on year. In September 2012 alone, the monthly output hit a record high of 210Mt, reflecting a recovery in the industry.
Pfeiffer wins VRM order from Colombian producer 01 November 2012
Germany: Gebr. Pfeiffer Inc., a subsidiary of Gebr. Pfeiffer SE, has been awarded a contract to supply an MPS 140 BK Coal Mill at Cementos Tequendama in Suesca, Cundinamarca. The contract follows other recent Pfeiffer projects in Colombia, including Cementos Tequendama, Cementos San Marcos and other cement plants. Cementos Tequendama became operational in 2008 after an investment of US$150m. The plant has a cement capacity of 300,000t/yr.
The worst cement company report ever? 31 October 2012
However bad the multinational cement financial reports get as they tighten their operations remember that it could be worse. For example, they could face the challenges the East African Portland Cement Company (EAPCC) has confronted over the last year. Reuters broke the news this week that EAPCC had widened its loss to US$9.96m due to poor sales, a major plant breakdown and labour unrest. All of this occurred in a construction economy demanding ever more cement.
EAPCC has seemed surrounded by controversy over the last year starting with a conflict of interest issue raised over a change in clinker supply in December 2011. This then led to the removal of the company's directors by the Kenyan government, which in turn led to a strike. In the chaos a worker was shot and wounded. On top of that the report reveals that there was a 'major' breakdown in one of the plant's kilns. It's a wonder that EAPCC didn't make a greater loss in the 2011-2012 year.
Demand for cement in Kenya and in the other countries in the east African region is growing. Data from the Kenya National Bureau of Statistics in December 2011 showed that cement consumption in Kenya rose by 12% in the nine months to September 2011. As reported last week in GCW72, ARM Cement (formerly known as Athi River Mining Ltd) reported a net profit of US$9.71m for the first nine months of 2012. This marks a 328% growth in profit compared to the same period in 2011 when it made US$2.26m. Meanwhile this week it was announced that Ethiopia is about to open its second cement plant in the town of Dire Dawa. More plants are on the way. Over in Tanzania, the Tanzania Investment Centre (TIC) announced that the country's cement deficit surpassed 1Mt since 2011.
As has happened elsewhere in Africa, notably in Nigeria and South Africa, local producers are pushing hard to restrict foreign imports as they grow their own capacity. In September 2012 the East Africa Cement Producers Association (EACPA) made warnings on the issue. The chairman of EACPA at the time was none other than the managing director of the EAPCC. In addition potential investors should take note that Kenya will hold its next general election in March 2013. Over 1000 people died in the protests following the 2007 election as well as the displacement of over 500,000 people.
Given this growth in protectionism, international producers who want to expand are being forced to seek riskier territories. Pakistan's Lucky Cement, a major importer of cement to Africa, is doing exactly this. It announced this week that it is entering into joint ventures in plants in DR Congo and Iraq. However these projects perform, Lucky Cement must be praying that they don't end up looking like the last year that EAPCC has endured.
Trinidad Cement appoints new director 31 October 2012
Trinidad: Trinidad Cement, a subsidiary of TCL Group, has appointed Alejando Alberto Ramirez as a director. The appointment was effective from 12 October 2012. Ramirez succeeds Luis Miguel Cantu Pinto who retired from the board of directors on 5 October 2012. Ramirez was elected on 12 October 2012 at TCL's annual meeting to fill the vacancy.
Holcim Philippines planning US$350m plant on strong Q3 31 October 2012
Philippines: Holcim Philippines has plans to invest US$350m to US$450m on building a new 2Mt/yr cement plant due to increased demand and sales in the third quarter. This quarter is normally a weak season for the construction industry because of monsoon rains.
Holcim Philippines' chief operating officer Roland van Wijnen said that cement demand remained robust on account of sustained government infrastructure spending and steady rollout of residential and commercial projects. The Cement Manufacturers Association of the Philippines (CEMAP) has reported a growth rate of 20% since October 2011.
Holcim Philippines reported a 22.5% growth in its net income to US$61.5m in the first nine months of 2012 from US$50.3m in the same period of 2011. Revenues for the past nine months reached US$491m, an increase of 22.5% year on year. However, third quarter earnings in 2012 declined to US$12.5m from US$15.2m in 2011. The company attributed this to having to import clinker to augment production given that several of its facilities were under preventive maintenance.
"The challenge for us is to meet increasing demand over the longer term. We have begun reactivating our idle facilities, beginning with our terminal in Calaca, Batangas in 2011. Our grinding plant in Mabini will be operational by the third quarter of 2011," said van Wijnen. Holcim Philippines is now preparing a proposal for a new cement plant to be submitted for board approval in the first half of 2013. If built this will boost the firm's cement capacity to about 9.5Mt/yr with a completion date of 2016.
EAPCC reports US$9.96m loss for 2011-2012 31 October 2012
Kenya: East African Portland Cement (EAPCC) has reported a loss of US$9.96m for the year ending 30 June 2012, compared to a loss of US$1.40m in 2011. EAPCC saw its revenue drop by 15% to US$101m in the same period. The company's takings were affected by slow sales, a major plant breakdown and labour unrest.
The company said that production was hurt by labour unrest that caused operations to be suspended in January 2012 and a major breakdown of one of its kilns that hit production. Other factors included a weakening Kenyan Shilling, and rising costs for power and raw materials. In addition slow sales affected revenue.
Cementos Molins ups profit by 85% so far in 2012 31 October 2012
Spain: Spanish cement company Cementos Molins has reported a net profit of Euro31m for the nine months to September 2012, an increase of 85% compared to the same period in 2011. In a regulatory filing the company attributed the increase to its international operations.
The foreign units of the company recorded a net profit of a total Euro55m while the domestic subsidiaries registered a combined loss of Euro24m. Cementos Molins' turnover was Euro688m from January to September 2012, a rise of 12.6% year-on-year.
Sales abroad grew by 23% to Euro550.4m while domestic sales fell by 15.7% to Euro138m due to a significant reduction in demand. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 43% in Euro159m. The company's net debt was Euro349m at the end of September 2012, a reduction of Euro49m from December 2011.