Displaying items by tag: H1
Pakistan sees improvement in first half of fiscal year
22 February 2012Pakistan: Many Pakistani cement manufacturers have posted robust earnings during the first half of the 2012 financial year, which ended on 31 December 2011. Across the six major producers, representing 68% of the market, the overall profitability of the sector grew by a factor of 2.2 over the same period of 2010. Overall net sales of the sector grew by 32% to US$418m.
Separately most Pakistani cement producers posted profits for the six month period. DG Khan and Lucky Cement, which between them contribute around 25-28% of total cement sales, posted robust earnings per share growth. On the other hand, Fauji and Thatta Cement, despite better overall margins, posted losses. Fauji Cement posted losses due to lower utilisation of its new 2.1Mt/yr plant due to power outages and lower demand, while Thatta cement remained in the red due to extremely low sales, which were approximately 20% of those expected.
Cement production up in Romania in first half
26 September 2011Romania: Cement production in Romania were up by 8.1% year-on-year in the first half of 2011 to 3.18Mt. Domestic cement sales increased by 2.4% to 2.95Mt according to data released by the Romanian Association of Cement Producers (CIROM). Romania's cement market is dominated by the local units of Lafarge, Holcim and HeidelbergCement.
CRH posts 280% improvement in pre-tax earnings
25 August 2011Ireland: CRH plc, the Dublin-based international building materials group, has reported a 280% increase in pre-tax profit to Euro95m for the six months to 30 June 2011. The first half of 2010 saw a pre-tax profit of just Euro25m.
Turnover in the first half of 2011 was up by 7% to Euro8.1bn compared to the same period of 2010 when it was Euro7.6bn. Earnings before interest, tax, depreciation and amortisation rose by 10% to Euro574m from Euro520m in 2010. CRH said the increase in profit was largely driven by its Products and Distribution operations in Europe and the Americas.
The group's net debt at 30 June 2011 was down by 17% year-on-year to Euro3.9bn, compared with Euro4.7bn at 30 June 2010. Cash spent in the first six months amounted to Euro163m, while proceeds from disposals amounted to Euro392m.
Commenting on the results, CRH chief executive Myles Lee said that the improved results demonstrated the benefits of the group's recent reorganisation and restructuring, which has been carried out in response to 'exceptionally difficult markets' in recent years.
Looking forward, Lee said that CRH would continue to focus on, "Operational and commercial excellence, delivering the price increases necessary to recover higher input costs in our businesses and on delivering a year of progress for CRH in 2011." He added that this would be difficult given the recent turbulence seen in the global stock markets.
Chinese industry records massive growth
04 August 2011China: China's cement industry has maintained its rapid growth in production, sales and profits so far in 2011, according to the latest data released by the Ministry of Industry and Information Technology (MIIT).
According to MIIT statistics China produced 198Mt of cement in June 2011, an increase of 19.9% over June 2010. This represents record highs for both monthly cement output and monthly growth rate. In the first half of 2011, China's cement production increased by 19.6% year-on-year to 950Mt.
Cement and clinker exports stood at 5.6Mt during the same period with an export value of USD310m for June 2011, down 35.5% and 14.9% year-on-year respectively.
According to the statistics provided the cement industry witnessed sales of USD50.4bn in the first five months this year with profits of USD5.4bn, up by 48% and an extraordinary 170% year-on-year respectively. Chinese cement production statistics are viewed with skepticism by some in the cement industry, who believe that they may be inflated.
Raysut sees decline in profit in first half of 2011
06 August 2011Oman: Raysut Cement's Chairman, Alawi Ali Muqaibal, has announced that the company's pre-tax profit declined by 44% in the second half of 2011, falling to USD19.6m from the USD35m that was earnt in the same period of 2010. For the first six months of 2011 Raysut's production cement production was 1.62Mt and its clinker production was 1.71Mt.
Muqaibal added that during the period under review, total sales reached USD77.6m, a decline of 17% from the USD93m taken in 2010. Despite competition in the UAE, the company's subsidiary, Pioneer Cement, earned USD3m.
Titan reports a 66% drop in net profit
03 August 2011Greece: Titan Group has recorded a poor set of financial results for the second quarter and first half of 2011, in line with independent forecasts. Turnover in the first six months of 2011 was down by 18.2% year-on-year to Euro557m, earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 12.4% to Euro141.4m and the group's net profit was Euro23.4m, down a massive 65.7% on 2010.
The weakening of the Egyptian pound and Turkish Lira, as well as the US Dollar versus the Euro, led to negative foreign exchange effects. At stable exchange rates, the decline in Group turnover would have stood at 14.1% and the decline in EBITDA would have been 6.6%. The group's results were also negatively impacted by increases in the price of fuels.
The deterioration in operating results was mainly attributed to the sharp decline in construction activity in Greece (reaching a nearly 40-year low), in conjunction with the deep and persisting depression of construction activity in the USA. In contrast, Group's activities in developing countries, particularly in the Eastern Mediterranean region, increased their contribution to the group's operating results.
In Greece, the combination of growing uncertainty regarding employment and attendant future household income, coupled with the decline in new loans issuance on the part of banks and the existing surplus housing stock, resulted in a sharp decline in demand for building materials. The repeated cutbacks in public investment programmes and the state's inability to cover its arrears, have brought public works to a standstill. In Greece Titan's EBITDA consequently declined by 49.4% compared to the first six months of 2010 to stand at Euro26.9m.
In the USA, construction activity continues to be faced with a very poor set of circumstances. Uncertainty regarding the timing of the economy's turnaround in conjunction with the country's debt crisis, the containment of public expenditure and the high levels of unemployment are preventing the recovery of the construction sector. Activity in the south east states, where Titan is primarily active, remains particularly stagnant at the very low levels witnessed in recent years. EBITDA in the USA recorded a loss of Euro4.8m in the first six months of 2011.
In south east Europe, indications emerged that the recovery in the region's economies is gradually beginning to have a positive impact on construction activity. Within the context of its stated goal of reducing its carbon footprint, the group completed the installation of a new unit in Bulgaria within the plant's perimeter for the pre-processing and recycling of municipal waste, which is expected to come on stream in the third quarter of 2011. EBITDA in the region of south east Europe recorded marginal growth, reaching Euro42.7m.
The social upheaval in Egypt is gradually affecting the country's growth rates and subsequently also pulling down the construction sector. In contrast, the growth of the Turkish economy has led to higher demand in the construction sector as well. EBITDA in the eastern Mediterranean region grew by 19.5% to Euro76.5m.
The prospects for Greece in the second half of 2011 remain very poor. Cement demand for the full year is forecast to stand at just 35% of 2006-7 levels. Support from the EU, which aims to kick-start investments and public works, is not expected to lead to a meaningful improvement in the coming year. In line with poor expectations in Greece and Titan's other major areas of interest, the group has said that it will continue to focus its efforts on the generation of free cash flow aiming at improving its financial flexibility.
Lafarge second quarter and first half 2011 results
28 July 2011France: Lafarge has released its financial results for the second quarter and first half of 2011 which show strong cement volume growth. The group's sales were stable in the second quarter of 2011 at Euro4.42bn but current operating income was down by 16% on the year to Euro702m. For the first half of 2011, sales were up by 3% to Euro8.0bn but current operating income was down by 14% to Euro926m.
Sales increased on a like for like basis in all product lines for both the quarter and first half of 2011, thanks to strong volume growth driven by continued strength in emerging markets. Cement prices moved progressively higher from the fourth quarter of 2010 to the second quarter 2011, but were slightly down compared to the first-half of 2010.
Lafarge achieved Euro50m of structural cost savings in the quarter and has achieved Euro100m of savings in 2011 to date and has agreed to sell its Australian, South American and European gypsum wallboard assets.
Bruno Lafont, Chairman and CEO of Lafarge, said, "While I am encouraged by the return to cement volume growth for the last several quarters, the impact of high inflation and a slow recovery in mature markets has weighed on the cement sector. The group is focused on its priorities, including price actions in response to a high-cost environment and strategic moves with its asset portfolio, to support profitability and reduce debt by at least Euro2bn in 2011. The business will continue to benefit from volume growth thanks to our continued development in emerging markets."
Lafarge expects to see cement demand continuing to move higher and estimates market growth of 2-5% in 2011 compared to 2010. Emerging markets continue to be the main driver of demand and Lafarge benefits from its well balanced geographic spread of high quality assets.
Cement sales were stable in the second quarter (up by 3% like for like) and up 3% in the first-half (up by 3% like for like), reflecting volume improvements in emerging markets and new capacities acquired in Brazil offset by the negative impact of foreign exchange.
Volumes increased by 9% in the quarter (up by 6% like for like) and by 8% in the first-half (up by 5% like for like), with growth driven by the Middle East, Africa and other emerging markets. Despite the Group's cost reduction program, higher cost inflation and foreign exchange put pressure on results and margins.
Taiwan Cement Corp raises its game in China
20 July 2011Taiwan/China: Taiwan Cement Corp. (TCC) has made rapid progress in the Chinese market so far in 2011, recently announcing a massive seven-fold increase in first half earnings compared to 2010. TCC took USD138.5m in earnings from operations in China in the first half, which it attributes to higher product prices and successful capacity expansions. TCC's subsidiary in China, TCC International Holding Ltd, registered USD43.3m and USD95.2m in earnings in the first and second quarters respectively.
According to analysts, China's cement industry normally improves in the second quarter. TCC International shipped 7Mt of cement in the first quarter, with investors forecasting the volume to exceed 9.2Mt in the second quarter. If realised, such figures would represent a 30% year-on-year increase.