Displaying items by tag: Forecast

Germany: Vecoplan Group has recorded its highest ever new order intake of Euro180m in 2021, up by 60%. The company said that its earnings before interest, taxation, depreciation and amortisation (EBITDA) for the year also set a company record.

CFO Michael Lambert said “Internationalisation is picking up speed. In line with this, we are implementing new sales and service centres throughout the world. Additional locations in various countries and regions are being planned.” He added “In 2022, we will be putting the spotlight on our digitalisation strategy and investing several million euros in software and hardware.”

CEO Werner Berens added a note of caution: “In spite of the good prospects for the new year, supply chains will continue to be disrupted by global factors like supply bottlenecks, raw material shortages and logistics problems. We too must show that we are able to deal with these big challenges.”

Japan: Sumitomo Osaka Cement recorded sales of US$1.19bn in the first nine months of the 2022 financial year, down by 22% year-on-year. The company’s net profit was US$71.7m. For its full-year 2022 financial year, the group forecast sales of US$1.61bn, down by 22% from full-year 2021 financial year levels. It expects full-year net profit to drop by 32% to US$69.2m.

Japan: Taiheiyo Cement recorded consolidated sales of US$4.57bn in the first nine months of the 2022 financial year, down by 24% year-on-year from US$5.65bn in the corresponding period of the 2021 financial year. The group’s net profit in the period was US$256m, down by 20% year-on-year from US$322m. Dow Jones Institutional Newswires has reported that the producer forecast full-year sales in the 2022 financial year of US$6.15bn and a net profit of US$294m.

Germany: HeidelbergCement recorded sales of Euro18.7bn in 2021, up by 6.3% year-on-year from Euro17.6bn in 2020. The group says that the growth exceeds its anticipated ‘slight increase’ in sales. Sales in the fourth quarter of 2021 were Euro4.7bn, up by 4.4% from Euro4.5bn in the fourth quarter of 2020. The company announced a preliminary result from current operations of Euro2.61bn, up by 11% from Euro2.36bn in 2021.

China: Tangshan Jidong Cement says that it expects its consolidated net profit to drop by up to 3.5% year-on-year to US$441m in 2021 from US$457m in 2021. Its full-year cement and clinker sales were 99.7Mt in 2021, down by 7% year-on-year.

Kazakhstan: Steppe Cement sold US$83.4m-worth of cement in 2021, up by 16% year-on-year from its US$71.7m-worth in 2020. Its sales volumes totalled 1.69Mt for the year, up by 2.4% from 1.65Mt in 2020. It exported 202,000t of cement, down by 57% from 86,500t. The company said that production limitations prevented it from fully meeting demand, and it concentrated on local markets. Regarding its outlook in 2022, Steppe Cement said “We have a healthy cash balance and are continuing our capital expenditure (CAPEX) programme to increase the production capacity of the company by 5% by mid-2022.”

Dow Jones Newswires has reported that Kazakhstan’s 2021 full-year cement consumption was 11.6Mt, up by 23% year-on-year from 9.4Mt in 2020. A rule change to pension withdrawals permitting allocations for home improvement and construction bolstered demand growth. Exports fell by 20% to 1.6Mt from 2Mt, while imports rose by 33% to 800,000t from 600,000t.

India: Axis Bank subsidiary Axis Securities has predicted a 4 – 6% year-on-year drop in Indian cement sales volumes during the third quarter of the 2022 financial year, which ended on 31 December 2021. The Hindu newspaper has reported the reasons for the predicted drop as extended monsoons, especially in the south of the country, and a construction ban in the National Capital Region due to pollution. Monthly sales grew slightly year-on-year in December 2021.

Axis Securities has also forecast a revival of demand in the fourth-quarter, driven by infrastructure and housing projects. Overall, it expects national demand for cement to grow by 8 – 9% in the 2022 financial year.

Taiwan: Zhang Anping, the chair of Taiwan Cement, has expressed doubts about the strength of the Chinese market in the short term. Whilst being interviewed by the state-owned Central News Agency at a community event, he said that increased raw material and energy prices looked set to remain high until at least mid-2022. The price of coal in China had more than tripled in 2021 before easing somewhat. He also raised the risks of growing global market uncertainty from an anticipated rise in interest rates in the US by the Federal Reserve and the spread of the Omicron variant of Covid-19.

Vietnam: Vietcombank Securities Company (VCBS) has forecast a 16% year-on-year rise in Vietnam’s cement and clinker exports to 44.5Mt from 38.4Mt. 22.3Mt (50%) of the 2021 exports will be to China. Viet Nam News has reported that VCBS forecast a drop in Vietnam’s cement and clinker exports to China in 2022 due to a Chinese property market slowdown. From 2023, the Vietnam government plans to raise its clinker export tariff to 10% from 5%.

India: Ratings agency Crisil has forecast 11 – 13% year-on-year growth of cement sales volumes in the 2021 financial year. The Press Trust of India has reported that the agency predicted that high demand and increased fuel costs would precipitate a rise in cement prices to record levels before April 2022.

In December 2021, petcoke prices rose by 80% year-on-year, while the price of imported coal had more than doubled. This has increased cement producers’ costs by 40%.