Displaying items by tag: Holcim
Indonesia: Holcim Indonesia has reported that its profit for the first quarter of 2015, which ended on 31 March 2015, was down to US$2.49m from US$24.7m in the same quarter of 2014. Sales for the quarter were US$171m compared to US$180m in 2014. Gross profit was US$40.6m, compared to US$52.5m in 2014, while operating profit was US$11.9m, compared to US$28.5m in 2014.
"The cement industry as a whole faces some significant challenges, in the continued downward trend for this sector of the economy and the absence, so far, of anticipated stimulus from fiscal spending on upgrading infrastructure," said Kent Carson, CFO of Holcim Indonesia. "At the same time, competition has escalated significantly with considerable new capacity introduced, creating substantial oversupply in a market where costs continue to stubbornly climb."
Switzerland: Kaspar E A Wenger has been appointed as the chairman of the board of Holcim (Schweiz) AG. The role follows more than 20 years at Holcim, including more than ten years of operating responsibility for Holcim (Schweiz) AG and the responsibility for Central Europe.
In the framework of the progressing merger between Holcim and Lafarge, Wenger will become designated chairman of the board of Holcim (Schweiz) AG, effective from 30 June 2015. He will relinquish his responsibilities as area manager for Central Europe (Switzerland, South Germany, Italy). Wenger will play a key role in supporting the activities of LafargeHolcim in Switzerland specifically.
Gerd Aufdenblatten, currently CFO of Holcim Central Europe, will replace Wenger and become cluster-CEO. Gerd Aufdenblatten joined Holcim in 2007 and became CFO of Holcim Central Europe in 2013. A successor for the position of CFO will be communicated in due course.
Switzerland: Holcim is preparing the reorganisation of group functions in the context of the proposed merger with Lafarge. The objective is to create a lean organisation with empowered countries, regional management platforms and group functions for the combined company.
Group functions are designed to increase the competitiveness of the group at global, regional and local levels, to implement best practices and to support and enable LafargeHolcim to achieve the highest possible performance. The proposed new organisation would result in a net reduction of approximately 120 positions in Holcim group functions in Switzerland.
The social consultation process to reduce the impact on roles that are affected by reductions will now be launched with the employee representatives in Switzerland. In parallel, Lafarge is presenting to its social bodies' representatives the proposed organisation of central functions in the context of the creation of LafargeHolcim.
The merger project is expected to close in July 2015, subject to the acceptance of Holcim's public exchange offer by the shareholders of Lafarge. The implementation of the new organisation is expected for early 2016 after completion of all relevant social consultations in Switzerland and France.
France: Lafarge has proposed to cut 380 jobs as part of its pre-merger preparations ahead of its merger with Holcim to form LafaregHolcim. The new group, set to be the world's largest building materials group, will employ approximately 115,000 people.
The organisation of the new group will be balanced between a decentralised structure and strong central functions based on three organizational levels: Countries; Regions (Europe, North America, Middle East & Africa, Latin America, Asia-Pacific, and; Corporate functions, which will help define the Group's key strategies.
There will be an equivalent number of personnel in the central functions in France and Switzerland. The new group's research and development centre will be located in France.
Concerning Lafarge at worldwide level (i.e., in sites located in Atlanta (USA), Beijing (China), Cairo (Egypt), Kuala Lumpur (Malaysia), Lyon (France), Montreal (Canada), Paris (France) and Vienna (Austria)), the proposed new organisation of central functions will result in approximately 380 net job losses, with 166 of these in Paris and Lyon.
The social support measures that will be negotiated with employee representatives will mostly consist of solutions based on internal mobility, early retirement and (in France) voluntary departures. The proposed merger will not affect employment in Lafarge's operational functions in France, which employ more than 4500 people.
This procedure is a key phase in the preparation of the creation of the new LafargeHolcim Group. The completion of the proposed merger is expected to occur in July 2015. Before this can happen, the public exchange offer will have to be successful, with shareholders tendering at least two-thirds of Lafarge shares.
Croatia: Holcim's Croatian unit has recorded an operating profit in the first quarter of the year, for the first time since 2009. Holcim Croatia said that its revenues fell by Euro463,000 in the first three months of 2015 compared to the same period of 2014. However, the revenues were 10% above its plan.
In July 2014, Holcim Croatia's board chairman Alan Sisinacki said that the ongoing 2015 Plus Turnaround Programme should get the company back to profitability in 2015. However, the company said on 8 May 2015 that it is still not certain that it will turn to profit in 2015. Holcim Croatia cut its loss to Euro1.78m in 2014 from Euro6.34m in 2013.
Europe: On 8 May 2015, Lafarge and Holcim secured support from Holcim shareholders for their proposed merger. Representing around 72% of Holcim's share capital, the 738 shareholders attending the Extraordinary General Meeting of Holcim Ltd approved all motions proposed by the board of directors.
"Holcim shareholders have voted for a joint future with Lafarge with an overwhelming majority. With this decision, we create the opportunity for profitable and sustainable growth. Holcim and Lafarge can now take the final steps to found the world leader in the building materials sector," said Wolfgang Reitzle, currently chairman of Holcim and future co-chairman (statutory chairman).
"It is a great satisfaction that Holcim shareholders overwhelmingly gave their support to the proposed merger. This endorsement is a clear demonstration that shareholders are fully convinced of the substantial value creation potential. I am confident that Lafarge shareholders will in turn ratify this once-in-a-lifetime opportunity and tender their shares, paving the way to the merger. The combined group will be a unique global champion in the building materials industry, focusing on customers and innovation, uniting the best teams in the industry. Featuring a new business model, outstanding cash flow generation capabilities and reduced capital intensity LafargeHolcim is designed to deliver superior returns to shareholders," said Bruno Lafont, currently chairman and CEO of Lafarge and future co-chairman of LafargeHolcim.
Holcim shareholders approved with a vast majority the creation of both ordinary and authorised share capital, which are necessary for the successful completion of the merger. In addition, shareholders also voted for the creation of authorised share capital in order to allow the distribution of a stock dividend to all shareholders of the new Company. The proposal to change the corporate name of Holcim Ltd to LafargeHolcim Ltd was approved as well.
The shareholders elected Bruno Lafont, Bertrand Collomb, Philippe Dauman, Paul Desmarais Jr, Oscar Fanjul, Gérard Lamarche and Nassef Sawiris to the board of directors. They will join Wolfgang Reitzle, Beat Hess, Alexander Gut, Adrian Loader, Thomas Schmidheiny, Hanne Birgitte Breinbjerg Sørensen, and Dieter Spälti, who had been elected at Holcim's ordinary General Meeting on 13 April 2015. Subject to the effective completion of the exchange offer, Anne Wade and Jürg Oleas will resign from their office as current members of the board of directors of Holcim.
US/Canada: Lafarge and Holcim have received final approval for their proposed merger from the competition authorities in the US and Canada. All competition approvals necessary for closing the transaction have now been obtained ahead of the expected closing in July 2015.
Following the regulatory assessment in all key jurisdictions, Holcim and Lafarge can now present a final list of divestments to satisfy regulatory requirements. These divestments remain subject to the completion of the merger, including a successful public exchange offering to Lafarge's shareholders and approval by Holcim's shareholders.
Philippines: Holcim Philippines has targeted an investment of US$40m over a three-year period to increase cement production capacity. Despite strong domestic demand for cement, revenue fell by 10% in the first quarter of 2015 due to rising costs.
The investment will mainly finance the 'debottlenecking' of existing facilities by bringing production capacity up to 10Mt/yr by 2017, according to Eduardo A Sahagun, president and chief executive officer of Holcim Philippines, in a briefing to local press. At present the cement producer has a production capacity of 8.2Mt/yr. Around 65% of the investment will go towards maintenance of existing facilities. Holcim Philippines remains committed to developing a brownfield cement plant in Norzagaray, Bulacan subject to the approval of the company's head office in Switzerland.
Sahagun blamed the fall in revenue on expensive clinker imports from Vietnam intended to support the market. Despite this the company expects annual profits for 2015 to exceed those in 2014.
Switzerland: Holcim's net income has more than doubled to Euro360m for the first quarter of 2015 due to its sale of its minority stake in Siam City Cement. Sales of cement volumes fell by 5.5% to 31.2Mt from 33Mt in the same period. Net sales fell by 2.8% to Euro3.78bn.
"Holcim reported robust development in the first quarter 2015, with an increase in financial performance despite a different weather pattern and some volume declines compared to a very strong previous year's quarter. Holcim also generated higher cash flow from operating activities and increased net income significantly supported by the gain from the divestment of the Group's minority shareholding in Siam City Cement," said Bernard Fontana, CEO of Holcim.
Cement deliveries declined in the period as all group regions except North America and Latin America sold less volume. However, in markets including Mexico, the US and the Philippines, more cement was sold. Holcim expects that its key construction markets in 2015 will be the US, India, Indonesia, Mexico, Colombia, the UK and the Philippines. Flat development and market uncertainty is expected in Europe and Latin America respectively.
Holcim Lanka launches Ready Flow Plus cement
30 April 2015Sri Lanka: Holcim Lanka has launched Ready Flow Plus, a blended ordinary Portland cement product. The cement producer says it offers high performance with strength, consistency and workability.
"In developing Ready Flow Plus, Holcim (Lanka) has gone one step further in shifting, from ordinary Portland cement that requires inputs such as clinker, to blended cement which scores high on sustainability and leaves a smaller environmental foot print," said Sanka Senaviratne, manager of industrial sales at Holcim (Lanka). The product is being targeted for the construction of high-rise buildings. Ready Flow Plus cement is already sold in other Asian countries.