Displaying items by tag: Forecast
Buzzi Unicem increases nine-month sales and cement volumes in 2021
08 November 2021Italy: Buzzi Unicem’s consolidated sales rose by 5.6% year-on-year to US$2.54bn in the first nine months of 2021 from US$2.41bn in the first nine months of 2020. It recorded consolidated cement sales of 23.4Mt, up by 7.5% from 21.7Mt in the corresponding period of 2020. Sales growth in Eastern Europe - especially the Czech Republic and Poland - and the US offset a partial slowdown in Italy, particularly in the third quarter of the year.
The group expects global construction activity to generally remain level into the fourth quarter of 2021. It forecast “favourable” volume and price effects in its full-year results for 2021. It nonetheless noted “growing concern” at rising energy, fuels, logistics, raw materials and services costs in various regions. It forecast group recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) not in excess of 2020 levels.
Ukrainian cement consumption forecast to rise to 10.5Mt in 2021
05 November 2021Ukraine: The Ukrainian cement association Ukrcement has forecast a 17% year-on-year rise in domestic cement consumption in 2021 from 9Mt in 2020. Business World Magazine has reported that demand previously exceeded 10Mt in 2014.
Association head Pavlo Kachur said that the Ukrainian cement industry operated at 66% capacity utilisation in the first nine months of 2021. He added “Therefore, we have room to grow.”
Mexico: Cemex’s consolidated sales in the first nine months of 2021 were US$11bn, up by 5% year-on-year from US$9.4bn in the corresponding period of 2020. Its cement sales rose by 10% to 51.1Mt from 46.2Mt, while its ready-mix concrete volumes increased by 7% to 36.8Mm3 from 34Mm3. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) totalled US$2.24bn, up by 24% from US$1.81bn. Its gross profit was US$3.63bn, up by 18% from US$3.07bn. During the period, the group reduced its debt by 33% to US$8.98bn from US$13.3bn.
Cement volumes grew in all regions in every quarter of the year except the third, when they fell by 3% in Mexico and remained level year-on-year in Europe, the Middle East, Africa and Asia. The quarter brought an end to five consecutive quarters of double-digit year-on-year growth in bagged cement sales in Mexico. Mexican bulk cement sales meanwhile ‘accelerated in line with the formal sector recovery.’ The sharpest nine-month cement volumes growth was in South, Central America and the Caribbean, where sales rose by 19% year-on-year, followed by Mexico, with a rise of 12%.
CEO Fernando González said “We are pleased to report strong top-line growth, reflecting continued growth in demand for our products, coupled with an acceleration in pricing momentum. We are confident that our pricing strategy will more than compensate for the sudden runup in input cost inflation we have experienced.” He added “We remain optimistic regarding outlook, as most of our markets are operating at high capacity utilisation and sustainable midcycle levels that will be supported by monetary and fiscal stimulus, while others are just beginning an upcycle. Regarding our Future in Action initiative, we continue to advance on our climate action goals. During the quarter, we received validation from SBTi of our 2030 decarbonisation roadmap and joined the Race to Zero initiative. Our climate action agenda is a fundamental element of our medium-term strategy not only because it creates value for stakeholders, but because it is the right thing to do for future generations.”
Finland: Wärtsilä’s sales fell by 6% year-on-year to Euro3.18bn in the first nine months of 2021 from Euro3.39bn in the corresponding period of 2020. It increased its order intake by 11% to Euro3.58bn from Euro3.24bn. The company’s cash flow from operating activities fell by 12% to Euro360m from Euro407m. It expects that demand for its offering will increase ‘considerably’ year-on-year in the fourth quarter of 2021.
The supplier announced that it will aim to achieve carbon neutral operations and to provide a product portfolio which will be ready for zero carbon fuels by 2030. It published a report entitled Front Loading Net Zero on how production economies can make savings while managing the renewable energy transition. The report concludes that full decarbonisation before 2050 will be financially viable if properly supported by governments and energy companies.
President and CEO Håkan Agnevall said “These new targets demonstrate our commitment to a sustainable future. Our aim is to support our customers on their decarbonisation. Our products, solutions, and services will meet the stringent environmental requirements, and the fuel flexibility and fuel efficiency of the engines powering these sectors are key to enabling the transformation.” Agnevall added “Naturally, we also need to do our part as an organisation and minimise our own environmental footprint.”
Ube Industries revises 2022 financial year forecast downwards
22 October 2021Japan: Ube Industries has revised its profit forecast downwards for the 2022 financial year. It now expects a net profit of US$171m in the year to March 2022, a 15% fall year-on-year, compared to its previous forecast of US$184m. It has also forecast full-year consolidated sales of US$5.57bn, a rise of 3.4% year-on-year. The Nikkei newspaper has reported that the group attributed the lower figure for profit to increased costs of cement production, transport and its on-going integration of its cement businesses.
UltraTech Cement to increase sales and profit in second quarter of 2022 financial year
18 October 2021India: Ratings agency Emkay Global has forecast an 11% year-on-year rise in UltraTech Cement’s second-quarter sales in the 2022 financial year to US$1.5bn from US$1.36bn. It expects the producer’s cement sales to rise by 6% in the period to 20.4Mt, and its net profit to grow by 6.4% to US$174m from US$163m.
The Economic Times newspaper has reported that Emkay Global predicted that UltraTech Cement’s costs will rise by 7% and that its earnings before interest, taxation, depreciation and amortisation per tonne of cement will fall by 5% year-on-year.
Indian cement production forecast to reach 332Mt in 2022
14 October 2021India: Rating agency ICRA has forecast that Indian cement production will rise by 12% year-on-year to 332Mt in 2022. It said that pent-up pre-Covid-19 lockdown demand, rural housing demand and a pickup in infrastructure activity would drive the rise. ICRA predicted that demand would rise by a further 8% year-on-year to 358Mt.
In the first quarter of the 2022 financial year, domestic rose by 44% year-on-year and by 2% compared to the first quarter of the 2020 financial year to 142Mt. ICRA estimated that the top 12 Indian cement producers will record their highest ever average operating profit per tonne of cementitious material in the 2022 financial year. It said that this is likely to occur due to an increase in net sales realisation and cost optimisation measures.
Azerbaijan: Cement companies increased the total volume of cement produced in the first eight months of 2021 by 1.5% year-on-year to 2.2Mt from 2.17Mt in the corresponding period of 2020. Meanwhile, ready-mix concrete production increased sharply, by 39% to 1.7Mt from 1.3Mt.
On-going large-scale state construction projects the new territories East of Zangazur and Karabakh are anticipated to increase full-year cement production in 2021 and into subsequent years.
Spain’s eight-month cement consumption grows in 2021
01 October 2021Spain: Consumption of cement in the first eight months of 2021 was 9.58Mt nationally, up by 13% year-on-year from 8.48Mt in the first eight months of 2020. The Spanish Cement Industry Association (Oficemen) says that consumption remains 2% below pre-Covid-19 outbreak levels in the corresponding period of 2019. The El Economista newspaper has reported that the association has forecast full-year cement consumption of 14.6Mt in 2020, slightly below the full-year 2019 figure of 14.7Mt.
President José Cascajero said "These levels put us on the path to have a growth in future years that is hopeful. The recovery of infrastructure, which has returned to being the primary source of demand, and residential building, has allowed both consumption and expectations to be substantially improved since April 2021.”
In 2022, he forecast year-on-year demand growth of 3 - 5%, due in part to the positive impacts of the EU post-Covid-19 outbreak recovery fund. Cascajero warned of the increasing burden of rising electricity prices and CO2 emissions fees and called for ‘structural reforms’ to mitigate their drag on growth.
Indian cement production rose in first quarter of 2022 financial year
16 September 2021India: Cement companies produced 82Mt of cement in the three-month period ending on 30 June 2021, the first quarter of the 2022 financial year, corresponding to growth of 54% year-on-year. Production in the quarter declined by 12% quarter-on-quarter, due to the proliferation of new state Covid-19 lockdowns from April 2021 onwards. The Hitavada newspaper has reported that ratings agency ICRA forecast that full-year production will rise by 12% in the 2022 financial year, on account of pent-up demand, growing rural housing demand and a pick-up in infrastructure activity. It nonetheless estimated that production will remain 2% below pre-Covid-19 outbreak 2020 financial year levels, with continuing high costs due to rising fuel prices. In the first quarter of the 2022 financial year, coal prices more than doubled and petcoke prices rose by 98% year-on-year.