Displaying items by tag: Greece

Greece: The US market has continued to drive Titan Group’s sales in the first half of 2017. Its overall turnover rose by 6.9% year-on-year to Euro774m in the first half of 2017 from Euro724m in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18.9% to Euro142m from Euro120m. Over half of its turnover came from the US where the group noted rises in residential and infrastructure construction following economic growth and increased employment.

In the group’s other territories the situation was mixed, with the Greek construction market remaining depressed. Here cement consumption declined in the first half of 2017 following the end of several larger scale infrastructure projects during the early months of the year. Markets in Southeastern Europe delivered higher turnover but profits were hit by raising energy costs. Egypt continued to be negatively affected by the devaluation of the Egyptian Pound, although the group did manage to recapture sales volumes by increasing its fuel grinding capacity. Local competition arising from the start up of two new plants near to where its Adoçim subsidiary operates decreased sales volumes in Turkey and the construction market continued to decline in Brazil.

Israel: Danny Tal, the Trade Levies Commissioner at the Ministry of Economy and Industry, is investigating a claim that cement from Turkey and Greece is being dumped in the local market. The Melet Har Tuv Company originally made the claim to the ministry, according to the Globes business newspaper. In its claim Melet Har Tuv alleged that cement normally sold in Greece was being solid for about 85% of the value in Israel.

"The complainant has reasonably proved that it manufactures in Israel goods that are similar to the imported goods regarding the raw materials, manufacturing processes, physical attributes, marketing channels, the use and the treatment by consumers,” said Tal.

The country’s biggest cement producer Nesher supported the claim in April 2017 and this helped initiate the investigation. Data provided by Har Tuv to the Trade Levies Commissioner suggest that the market share the local cement companies have fallen following the increase of imports. Nesher’s market share fell to 65% from 75% and Melet Har Tuv’s share fell to 5.8% from 10%. It is alleged that LafargeHolcim is the main company ‘flooding’ the local market.

Greece: Titan Group’s finances recorded an improvement in the first quarter of 2017, primarily due to the continued recovery of the US market. All geographic regions where the group operates recorded higher sales volumes with the exception of Greece, where demand remains stagnant at low levels.

Consolidated turnover was Euro361.8m, a 7.1% increase year-or-year compared to the first quarter of 2016. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 18% to Euro51.1m. The net result after minority interests and the provision for taxes was a loss of Euro3.9m versus a loss of Euro18.6m.

The US market continues to constitute the main regional growth driver for Titan. Turnover in the country rose by 26.9% year-on-year to Euro221.2m. EBITDA almost doubled to Euro34.1m from Euro17.9m in the same period of 2016.

In Greece, residential building activity remained at very low levels, affected by the domestic economic crisis and increased uncertainty. Certain major public road projects were concluded early in 2017 leading to lower cement consumption. Export volumes were lower than the previous year due to competitive global conditions. The subdued market coupled with increased energy costs led to a decline in profitability. In total, group turnover for Greece and Western Europe for the first quarter of 2017 declined by 7.7% to Euro57.6m, while EBITDA, suffering from higher energy costs, fell to Euro4.4m from Euro8.3m.

Turnover in the markets of Southeastern Europe increased in the quarter but continuing competitive pressures and higher energy costs, both negatively impacted profitability. Total turnover increased by 5.8% to Euro37.9m, while EBITDA declined to Euro3.8m from Euro6.3m.

In Egypt, the group’s plants have been in full operation utilising locally-ground solid fuels, which allowed for an increase in production and sales volumes in the first quarter of 2017. The group said that the economy has not yet adjusted to the large devaluation of the Egyptian Pound in 2016 and a climate of uncertainty and volatility is affecting building activity and market prices. Turnover in Egypt during the first quarter was Euro45.2m, a significant increase in local currency but a 30.8% decline in Euro-terms, while EBITDA reached Euro8.9m, a 17.4% decline in Euro terms.

In Turkey demand was affected by a heavy winter and negative foreign exchange differences further impacted Adocim’s results. The net result attributable to Titan was a Euro0.5m loss versus a profit of Euro0.4m.

In Brazil, despite the improvement in key macroeconomic indicators, the market remained in decline compared to the same period in 2016. The signs of improvement in the construction confidence index have yet to be translated into an increase in demand for building materials.

Switzerland: LafargeHolcim and employee representatives in Europe have established a new European Works Council (EWC). The forum for consultation and dialogue at a transnational level will bring together worker representatives from 19 countries with senior leaders from LafargeHolcim.

“People are essential to the success of LafargeHolcim and our commitment to social dialogue through the new European Works Council is testament to this. During a period of transformation, we recognise that ensuring the full commitment, mobilisation, and engagement of our employees is a key building block for success,” said Eric Olsen, chief executive officer of LafargeHolcim.

The EWC was established based on an agreement signed by Olsen and Executive Committee members Caroline Luscombe, responsible for Organisation and Human Resources and Roland Köhler, responsible for Europe, Australia / New Zealand and Trading as well as Sam Hägglund, General Secretary of the European Federation of Building and Woodworkers EFBWW, among other management and employee representatives. Chaired by Köhler, the EWC replaces the previous European Works Councils. Countries represented in the EWC include Austria, Belgium, Bulgaria, Croatia, Czech Republic, France, Germany, Greece, Hungary, Italy, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Switzerland and the UK.

Greece: Titan Cement’s turnover grew by 8% year-on-year to Euro1.51bn in 2016 from Euro1.4bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 28.7% to Euro279m from Euro216m. The group attributed its success to continuing growth in the US and a recovery in Egypt.

By region, the US was the main source of growth for the group providing 53% of sales and 52% of operating profit. Its turnover in the US grew by 169% in 2016 to Euro794m. In Greece cement consumption remained similar to 2015 and the group continued to export a large proportion of local production. Despite this both turnover and EBITDA fell. In southeast Europe the group reported mixed results with rising sales volumes, falling prices and turnover and rises in profitability. In Egypt the market picked up and grinding and solid fuels upgrades at Titan’s plants compensated for local currency devaluation. Subsequently, turnover grew by 3.5% to Euro249m. Finally, the group’s partly-owned subsidiary in Turkey, Adocim, reported a modest increases in profit despite local currency effects.

Greece: The Labour Ministry has said that a European Court of Justice (ECJ) ruling on a group dismissal of workers by the Heracles General Cement Company in 2013 has supported the government’s position on the issue. The ministry has defended its current legislation on mass layoffs, saying that it should be modified not abolished, according to the Athens News Agency.

"We must first clarify that the court's decision does not concern the existing restrictions on mass dismissals, which are absolutely compatible with community law. The court's ruling is confined to the issue of the administrative advance approval of dismissals and the criteria taken into account by Greek authorities to make these decisions," said the labour ministry in a statement. It added that the ruling found that the Greek government was allowed to block mass layoffs under European Union law in certain circumstances.

Greece: Titan’s turnover has risen by 9.2% year-on-year to Euro1.12bn for the first nine months of 2016 from Euro1.03bn in the same period of 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 24.2% to Euro205m from Euro165m. It attributed the result to growth in the US market and improvements in Egypt.

In the US the cement producer’s turnover rose by 17.7% to Euro584m and in Greece it grew by 4.9% to Euro188m despite negative currency effects. This was due partly to increased production and sales volumes and partly to the decline in production costs following the gradual conversion of its plants to solid fuels.

In addition, the group concluded its deal to buy a 50% stake in Cimento Apodi in Brazil in September 2016. Cimento Apodi owns a cement plant in Quixeré that has operated since 2015 and a grinding cement plant in Pecém near Fortaleza, that has been in operation since 2011. It has a production capacity of over 2Mt/yr.

Greece: Titan’s turnover has risen by 7.6% year-on-year to Euro724m in the first half of 2016 from Euro673m in the same period in 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 13.5% to Euro120m from Euro105m. However, its net profit fell by 62% to Euro9.2m from Euro24.2m for the half-year period. The construction materials company benefited from growth in the US and Egypt but currency exchange rates, particularly in Egypt, hit its profits.

In the US Titan reported that sales revenue increased by 18.8% to Euro373m despite a long second quarter maintenance period at its Pennsuco cement plant in Florida. Turnover in Greece and Western Europe fell by 9.1% to Euro133.4m. In South-eastern Europe it rose by 6.7% to Euro97m. In Egypt turnover rose by 11.7% in local currency terms but fell by 0.6% in Euros to Euro121m. the group noted that in this country group plant production levels have reverted to levels similar of the pre-fuel crisis years. Coal mills have been implemented on both production lines at the Beni Suef plant since the end of March 2016 to reduce costs. Similar work at the Alexandria plant is on-going and will be completed by the end of 2016.

The group expects growth in the US to drive growth and profit for Titan in 2016 as a whole with support from an improved market in Egypt.

Greece: Heracles Cement Group, a subsidiary of LafargeHolcim, has announced the completion of a first phase of an investment plan to modernize its factory in Volos.

The Euro5m investment project aims to boost the competitiveness of the factory in the domestic market and to boost its export activity. The project has been interpreted by some as evidence of LafargeHolcim’s longer term confidence in the country, which has suffered from poor economic conditions and a weakened construction sector for much of the past decade.

Europe: The European Court of Justice (ECJ) has ruled that a Greek law that requests employers to receive approval by the Labour ministry before making bulk redundancies is incompatible with European Union law. The judgement was made in relation to the layoff of a group of workers at the Halkida cement plant when Lafarge purchased the plant from AGET Heracles in 2013, according to the Athens News Agency. The Labour ministry blocked the request, citing conditions in the labour market, the financial situation of the company and the interest of the national economy. Lafarge then appealed to the Council of State, which then referred the case to the ECJ.