Displaying items by tag: GCW162
Vicat profit increases by 6% in first half of 2014
05 August 2014France: Vicat Group's financial results for the first half of 2014 show consolidated sales of Euro1.22bn, a 6.1% improvement over the same period of 2013 and 10.8% higher at constant scope and exchange rates. Vicat's cement sales were up by 17.1% at constant scope and exchange rates.
The group's consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) came to Euro208m, an increase of 3.1% in absolute terms and an increase of 8.8% at constant scope and exchange rates.
The cement sector remains Vicat's most important activity, accounting for 53.5% of income as opposed to 53.4% in the first half of 2013. Vicat highlighted that continued growth in India, West Africa and the USA, a return to growth in Egypt and favourable winter weather conditions in mainland Europe (especially France and Switzerland) helped drive its increased sales. It noted a fall in volumes in Turkey but this was partially offset by increased sales prices in that country.
"Over the first half, Vicat saw strong growth in business volumes and operating profit," states the group report. "Nearly all regions contributed to this performance, particularly Egypt which saw a return to growth, India, which saw significant progress despite continued competitive pressures and the USA, which is once again generating positive operating profits. In France, despite a promising first quarter helped by good weather conditions, performances were down slightly, due to a persistently unfavourable macroeconomic and sector conditions."
New plant for Eurocement in North Caucasus
05 August 2014Russia: Eurocement Group will invest Euro167 m in the construction of a cement plant in the Karachay-Cherkess Republic in the North Caucasus. The new plant based on dry process technology will produce up to 4Mt/yr of clinker.
Cementos Yura invests in new cement plant
04 August 2014Peru: Cementos Yura, a Gloria Group subsidiary, has invested US$50.0m in machinery and equipment for a new cement plant. The company is building capacity to meet the demand of large construction projects in Southern Peru. In the first half of 2014, Yura reported US$39.2m in profit, down from US$39.9m in the same period of 2013. Yura's domestic market share fell from 22% in the first half of 2013 to 21.7% during the same period of 2014.
Cherat Cement to install new production plant
04 August 2014Pakistan: Cherat Cement Company Limited will invest US$197m to install a new production plant at its existing site in Nowshera, Khyber Pakhtunkhwa Province. The new plant will have a 1.3Mt/yr production capacity and will be commissioned in 30 months, according to Abid A Vazir, executive director of Cherat Cement.
The term-loan for the project has been arranged and Cherat Cement has established a letter of credit for the foreign component of the loan. The plant will be acquired from China's Tianjin Cement Industry Design and Research Institute Company Limited.
Cherat Cement expects domestic cement demand to grow exponentially as the present government has planned spending on major infrastructure projects, with a special focus on constructing highways and hydropower and housing projects. Cherat Cement is also expecting huge spending by the private sector on construction-related activities, fuelled by inflows of remittances from expatriate Pakistanis.
Buzzi Unicem and Wietersdorfer deal completed
01 August 2014Italy/Slovenia: Buzzi Unicem has completed a strategic agreement with Austria's Wietersdorfer & Peggauer, which was initially announced in February 2014. Under the terms of the deal, W&P Cementi, Wietersdorfer & Peggauer's Italian subsidiary, has acquired Buzzi Unicem's 0.3Mt/yr cement plant in Cadola, Belluno Province, Italy. W&P Cementi has also won the right to purchase Buzzi Unicem's 0.4Mt/yr cement plant in Travesio, Pordenone Province, Italy within the next five years for Euro22m. At the same time, Buzzi Unicem has paid Euro22m for a 25% stake in W&P Cementi and a 25% stake in Salonit Anhovo, Wietersdorfer & Peggauer's Slovenian subsidiary.
Lafarge plans to increase cement production capacity
01 August 2014Zambia: Lafarge Cement Zambia plans to double its cement production capacity from its two local plants to meet the growing demand, according to CEO Emmanuel Rigaux. In 2013, the domestic market for cement grew by 17%, largely driven by the continued increase in government infrastructure projects, mining expansion activities and to a smaller extent by individual home building projects.
"Lafarge Zambia is planning to double its capacity in Ndola and Chilanga through debottlenecking and construction of a new line," said Rigaux. "This will enable us to remain the market leader and preferred supplier of construction solutions in Zambia." Rigaux said that in 2013 production volumes improved by 105,000t to 1.18Mt from 1.07Mt in 2012, representing 9% growth. Volumes are expected to continue to improve on the back of strong growth in the construction industry in both domestic and export markets. Rigaux said that domestic sales volumes grew by 18% in 2013, while export sales volumes declined by 25% due to increased focus on the domestic market.
"The second half of 2013 saw a sharp improvement in operational and industrial results both at both our Ndola and Chilanga plants," said Rigaux. "Lafarge Zambia also implemented targeted cost reductions and logistical optimisations, which enabled us to improve our operating margins." Rigaux said that Lafarge Cement Zambia's financial position and cash flow remained solid with strong cash position and no external debt.
Germany: HeidelbergCement has reported that its profit for the second quarter of 2014 declined to Euro233m from Euro368m in the same period of 2013. However, earnings before interest and income taxes (EBIT) grew to Euro527m from Euro511m in 2013. Revenues for the quarter were Euro3.57bn, down from Euro3.59bn in 2013. HeidelbergCement's cement and clinker sales volumes rose by 4% to 22.3Mt compared to 21.4Mt during the second quarter of 2014.
HeidelbergCement announced that it plans to start a process to divest its building materials unit in September 2014 and expects to conclude the sale quickly. Potential buyers include private equity funds, not industrial enterprises, according to Bernd Scheifele, HeidelbergCement's CEO. Scheifele added that HeidlerbergCement would consider buying assets to be sold by Lafarge and Holcim, except for assets located in the UK and Germany.
Italy: Cementir Holding has confirmed that its 2014 earnings before interest, tax, depreciation and amortisation (EBITDA) will exceed Euro180m after posting annual growth of 26.4% in the first half of 2014.
Cementir reported EBITDA of Euro78.4m in the first half of 2014, up from Euro62m in the same period of 2013. Revenues inched up to Euro473m from Euro472m, with sales in Turkey, Scandinavia and the Far East offsetting weaker sales in Italy and Egypt. Net profit rose to Euro20.5m from Euro7.4m in the first half of 2013.
The exchange rates on the foreign markets affected sales in Euros. The currency depreciations to the euro, on the other hand, helped Cementir to cut its operating costs by Euro29.3m from the end of June 2013 to Euro386m at the end of June 2014. Cementir's net financial debt went up by Euro30m from December 2013 to Euro355m at 30 June 2014, as a result of plant maintenance, dividend distribution and changes in working capital.
For 2014, Cementir expects the growth trends in Scandinavia, Turkey and the Far East to continue, while it is difficult to predict the performance in Egypt due to the political and social unrest.
Thailand: Siam Cement has reported a 14% drop in its net profit in the second quarter of 2014. Weak domestic cement demand and lower chemical earnings hit the company after months of political unrest. Thailand's domestic cement demand is expected to grow by 1% at most in 2014 due to a drop in construction activity and a lack of new infrastructure projects, according to Siam Cement's chief executive Kan Trakulhoon.
Siam Cement posted a net profit of US$268m in the April – June 2014 period, down from Euro310m during the same period of 2013. Cement and building materials contributed 41% to Siam Cement's profit and weak domestic demand prompted an increase in exports.
"We export more to ASEAN nations, but we don't make much profit from exports," said Trakulhoon. "This is to help support our supply chain, while we continue to run at full capacity."
Siam Cement expects its performance to be positive in 2014 on expectations that Thailand's 2015 fiscal budget will speed up infrastructure investments, while consumer confidence should recover from the fourth quarter of 2014.
"Domestic cement demand should drop by 2 - 3% in the third quarter of 2014 from a year earlier, while growth in the fourth quarter of 2014 should be flat," said Trakulhoon. He added that cement demand in Thailand for the whole of 2014 would grow by 0 - 1%.
Siam Cement is also stepping up its ASEAN expansion by revising its current US$7.8bn five-year investment plan that kicked off in 2013. The plan is being revised for approval at a board meeting in August 2014. Cement plants in Cambodia, Indonesia, Laos and Myanmar are already in the pipeline, while other building material plants are planned to reduce shipping costs through increased local production.
"There are many opportunities in the ASEAN region, including mergers and acquisitions," said Trakulhoon. "There is no limit. It depends on how fast we acquire the companies. We are open to any acquisition proposals." Trakulhoon added that Siam Cement's primary focus outside of Thailand is on companies in Vietnam and Indonesia, where operations have been especially robust. ASEAN business rose by 20% in the first half of 2014 and now accounts for 9% of Siam Cement's overall sales revenue. That proportion is expected to rise in the coming years.
UK: The construction industry slow-down that started in 2008 led to Hanson Cement, HeidelbergCement's UK subsidiary, laying off 70 employees at its cement plant in Padeswood, Flintshire, Wales. At the time, Hanson considered closing the plant, but instead ran at half capacity in the hope the situation would improve. It has now submitted plans to Flintshire council for a new production line, which the company said would create 35 new jobs, following a building industry upturn.
"It's a good news story considering we've gone through such a depressed period," said Hanson's David Weeks. "We have three plants in the UK; one in Padeswood, one in Lancashire and one in Lincolnshire. We only really needed two and Padeswood would probably have been the one to go. But we decided to hang on in and now we're confident that we'll get Padeswood up to full capacity once again." Hanson Cement said that work will start immediately if it gets the go-ahead.