Displaying items by tag: Q3
Ultratech records 93% profit rise in Q3
23 January 2012India: Ultratech has posted a 93% rise in net profit for the fiscal quarter that ended on 31 December 2011 compared to the same period in 2010. India's largest cement producer by sales has attributed this rise to a low base of profit and revenue, improved demand and higher product prices.
Ultratech said that its cement sales rose by 6% to 9.72Mt in the third quarter. The company said that prices improved in the quarter but it didn't give exact figures. Net profit for the three months rose to US$120m from US$64m in 2010. Sales climbed to US$910m from US$740m.
The company said its variable costs increased by 16% in the quarter, largely due to higher prices of both domestic and imported coal. It added that India's monopoly coal producer raised its prices further in January 2012, which could hit its profit margin in the January-March 2012 quarter.
Looking ahead, Ultratech said that while India's cement demand is expected to grow at 8%/yr over the next few years, overcapacity in the cement industry and rise in cost of fuel and other raw materials could put pressure on margins. Ultratech reiterated that it will continue with its US$2.2bn expansion programme to increase its production capacity to 59Mt/yr by 30 June 2013. The company's current capacity is 50Mt/yr.
Most Indian cement companies are expected to post robust financial performance for the October-December 2011 quarter, as demand returned sharply after the seasonal monsoon rains ended in September, spurring construction activity. Cement prices have improved as a result of higher demand as well as rising costs.
Arabian Cement Company results
16 December 2011Saudi Arabia: Saudi Arabian cement producer Arabian Cement Company (ACC) has seen its net profit for the first nine months of 2011 surge by 36% year-on-year to US$88.7m.The company attributed the increase in bottom-line figures to rising production and sales volumes but did not give exact figures.
ACC's operating profit jumped by 48.2% to US$96.9m in the first nine months of 2011. For the third quarter of 2011, the company registered a net profit of US$27.9m, an increase of 28.4% year-on-year.
Titan income plummets by 46% in 2011
11 November 2011Greece: Titan has reported a 46% decrease in income for the first nine months of 2011. The group attributed the fall to a 'rapid decline in construction activity in Greece' in conjunction with the ongoing Greek debt crisis.
Income for the first nine months of 2011 was Euro52.9m, a year-on-year fall of 46.2% from Euro98.3m in 2010. The year-on-year quarterly decline was less severe dropping 1.7% to Euro30m in 2011 from Euro29.5m in 2010. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 15.5% to Euro219.8m for the first nine months of 2011 from Euro 260.3m in 2010. Turnover fell by 18.4% to Euro838.9m in the first nine months of 2011 from Euro1028.5m in 2010.
Aside from the domestic construction slump, the group also cited continuing low levels of demand in the US and the slowdown recorded in Egypt during the third quarter of 2011. Increased prices for liquid and solid fuels also had a negative impact on production costs. In addition the depreciation of the Egyptian Pound as well as the Turkish Lira against the Euro negatively impacted results. At constant exchange rates, the group predicted that turnover would have declined by 14%, while the decline in EBITDA would have stood at 10.5%.
FLSmidth cuts 2011 cement capacity growth forecast
10 November 2011Denmark: FLSmidth's profits have fallen by 12% year-on-year for the third quarter of 2011. The company has subsequently cut its estimate for world cement capacity growth in 2011, blaming stalled activity in India. Group profit was hit by weaker sales in its cement division despite higher sales in its minerals machinery business.
The profit for the quarter ending 30 September 2011 profit fell by 12% to Euro54m from Euro62m in the same quarter of 2010. For the nine months to 30 September 2011 profit fell by 8% to Euro117m from Euro128m in 2010. Total group revenue rose by 5% for the third quarter to Euro743m from Euro706m in 2010.
In the group's cement sector revenue for the nine months to 30 September 2011 decreased by 18% to Euro776m from Euro950m in 2010. Quarterly revenue for cement has fallen upon each consecutive quarter, with one exception, since the end of 2009.
"We cannot say how long the growth pause will last but it will definitely also extend into 2012," said chief executive Jorgen Huno Rasmussen, adding that India will continue to be a large and promising market.
The group said that it now expected the cement plant market in 2011 to grow by about 55Mt of new contracted cement kiln capacity worldwide, excluding China, against an earlier forecast of 65Mt. India is now expected to account for approximately 10Mt/yr compared to the previous projection in 2010 of approximately 20Mt/yr. Emerging markets such as Russia, South America, Africa and Asia were singled out for their high activity.
Unrest in North Africa hit cement consumption and investment in the region in the first nine months of 2011, the company said, adding that activities in Libya might resume in 2012 as the country headed towards greater stability.
Holcim blames 32% income drop in third quarter on strong franc
09 November 2011Switzerland: Holcim has blamed a 32% fall in income for the third quarter on the strong Swiss franc.
Holcim's income fell by 32% to USD460m in the third quarter from USD680m in the second quarter of 2011. Over the nine months to 30 September 2011 its income fell by 18% year-on-year to USD1.1bn from USD1.4bn in 2010. Sales mirrored this decline, falling year-on-year by 6.1% to USD5.9bn over the nine months to 30 September 2011 compared to USD6.3bn in 2010. The decline in sales between the second and third quarters was similar at 6.7%.
Despite the fall in total group income and sales, sales of cement rose in both the nine-month and quarterly period. For the nine months to 30 September 2011 sales rose by 5.2% to 108Mt from 103Mt. For the quarter ending 30 September 2011 volume sales rose by 6.2% to 37.2Mt from 35Mt in the quarter ending 31 July 2011.
"The strong appreciation of the Swiss franc during the first half of 2011 continued to negatively impact the financial result during the quarter, albeit to a lesser extent than during the second quarter," said Chief Financial Officer Thomas Aebischer. Holcim's sales during the three months to 30 September 2011 were reduced by USD948m by the currency. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) were reduced by USD200m, according to Aebischer.
As expected, Holcim noted that many emerging markets enjoyed brisk construction activity. In the Eurozone and in North America growth mainly remained restrained. The Latin America cement sector achieved the strongest rise in sales volumes, followed by Asia Pacific and Europe. In particular, the group's companies in Russia, Singapore, Indonesia, Colombia and Australia made larger contributions in Swiss francs to the sales. Where other group companies improved their results in local currency terms these successes were cancelled out overall by the strong Swiss franc.
In its outlook Holcim has pinned its hopes for consistent growth in the emerging markets of Latin America and Asia whilst singling out Africa and the Middle East for continued poor trading. In Europe and North America Holcim's intends for its lean cost structure to enable it to benefit more than average from any economic recovery. Lastly, the group mentioned that the sharp global rise in energy, raw material and transportation costs call for further price adjustments.
Italcementi reports third quarter profit drop
08 November 2011Italy: Italcementi has reported a 51.7% fall in third quarter net profits to Euro25m despite the sale of its assets in Turkey earlier in 2011.
The profit over the nine months to 30 September 2011 was up at Euro123.2m from Euro18.5m in 2010, with the group saying that cement sales were up in Belgium, France, North America and in the emerging markets of India, Morocco and Thailand. Total group sales remained almost unchanged at Euro3.6bn for the same period. Italcementi's cement sector reported Euro2.3bn for the first nine months of 2011, a drop of 8.4% from Euro2.5bn in the same period in 2010. Cement sales volumes remained steady at 38.9Mt. The group reported a contraction in Egypt due to the civil unrest there and said there was, "stagnation in some industrialised economies."
"The positive results seen on emerging markets where, with the exception of Egypt, sales volumes rose by around 3%, confirms their strategic importance," said Italcementi's chief executive Carlo Pesenti in a statement. "More than 60% of our production capacity is located in these regions and this will increase in the near future with the new development projects recently set up in India," Pesenti continued.
The group said the profit fall was due to 'the unfavourable dynamic of operating costs and exchange rate effects' Italcementi sold equity investments in Turkey for Euro133.4m earlier in 2011 and said it would continue with cost cutting.
"While the Egyptian market will still be affected by political instability and increased local competition, the rest of the group should generate improved operating results, also thanks to positive price trends in Italy," it said. "In the fourth quarter, the group should record a decline in operating results that will be less than those of the previous quarters," it said, adding that it expected a 'significant improvement' in net profit for 2011 overall.
Lafarge third quarter sales up but reliant on emerging markets
04 November 2011France: Lafarge has released its financial results for the third quarter of 2011, which reveal an increasing reliance on emerging markets. Its sales were up by 1% in the third quarter to Euro4.21bn and were up by 6% in like-for-like sales. Its current operating income was down by 9% to Euro750m, a 7% drop like-for-like. The group's net income was down by 10% to Euro336m.
For the first nine months of 2011, its sales are up by 2% compared to 2010 (up by 4% like-for-like) and its current operating income was down by 12% to Euro1.64bn. Its net income fell by 22% to Euro596m.
Sales in Lafarge's cement sector increased by 1% in the quarter (up by 5% like-for-like) and increased by 2% for the year-to-date (up by 3% like-for-like), reflecting volume improvements in emerging markets partially offset by the negative impact of foreign exchange. Its cement volumes increased by 6% in the quarter (up by 5% like-for-like) and by 7% for the year-to-date (up by 5% like-for-like), with growth driven by emerging markets. Pricing moved marginally higher in the third quarter versus 2010 while slightly down on a year-to-date basis. Despite the group's cost reduction programme, higher cost inflation and foreign exchange weighed on results and margins.
The group achieved Euro50m of structural cost savings in the third quarter and Euro150m for the year-to-date, on pace with its Euro200m full-year target. Lafarge also announced a new cost savings programme of Euro500m for 2012. The group made the strategic decision to divest its gypsum activities in the early part of the quarter. In total, Lafarge has secured over Euro2bn of divestment proceeds for 2011 for debt reduction.
Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said, "In the current economic environment, the group continues to be proactive and already secured over Euro2bn of divestments as part of its actions to reduce debt. These efforts will continue and today the Group is announcing a new Euro500m cost reduction programme. These measures, including price actions in response to a high cost environment, are part of ongoing steps to strengthen profitability, reduce debt and maintain strong liquidity."
"Looking ahead, the fundamentals of our business are strong. The group, fully focused on its core businesses, foresees sustainable cash-generating growth led by high quality positions, a unique exposure to emerging markets and the advantages created by innovative products and solutions."
Overall, Lafarge continues to see cement demand moving higher and maintains its estimate of market growth of 2-5% in 2011 compared to 2010. Emerging markets continue to be the main driver of demand and growth and Lafarge benefits from its well balanced geographic spread of high quality assets.
Raysut profit suffers
31 October 2011Oman: Raysut Cement, Oman's biggest cement producer, has announced a 47% fall in profit before tax at USD26.4m for the first nine months of 2011, against USD49.4m posted for the same period of 2010. The drop is not as dramatic as it appears, however, because its profit before tax in 2010 included a government price subsidy of USD4.1m.
The company said that the decline in profit was attributable to severe competition faced by the company both in the domestic and the export markets that had impacted both volumes and selling prices.
The company has sold 1.54Mt of cement and 0.33Mt of clinker during the period against 1.56Mt of cement and 0.32Mt of clinker in the corresponding period of 2010. This represents a decline of about 1% in terms of volume for cement and an increase of 3% in terms of volume for clinker.
Akmenes Cementas posts solid upturn in revenue
27 October 2011Lithuania: Akmenes Cementas, Lithuania's only cement manufacturer, posted Euro47.5m in revenue for the nine months from 1 January 2011 to 30 September 2011, a rise of 38% from Euro37.8m litas in the same period of 2010. Its cement sales increased by 23% to 743,000t and production output was up by 21% to 740,000t, according to the company's public relations officer Richardas Sudaris.
Its sales in the Russian exclave of Kaliningrad rose by 21% to 133,000t and sales in Belarus were up by 8.6% to 63,000t but sales in Latvia remained weak, at a mere 1000t. Exports to other EU countries almost doubled, increasing to 144,000t.
Cemex reports fourth quarterly improvement in a row
26 October 2011The Americas: Cemex has announced its financial results for the third quarter of 2011. These show that its consolidated net sales increased by 5% compared to the same period of 2010 to approximately USD3.9bn. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 1% during the quarter to USD658m compared to 2010. Operating income in the third quarter increased by 7% to USD305m, from the comparable period in 2010.
Cemex attributed the increase in consolidated net sales to higher sales, mainly from its operations in northern Europe, the United States and South & Central America and the Caribbean. It said that the infrastructure and residential sectors were the main drivers of demand in those and other regional markets.
Cemex's net sales in Mexico decreased by 1% in the third quarter of 2011 to USD856m, compared with USD868m in the third quarter of 2010. Operating EBITDA of USD285m was unchanged.Operations in the US reported net sales of USD713m in the third quarter of 2011, up by 4% from the same period in 2010. Operating EBITDA was a loss of USD10m.
Cemex's operations in South & Central America and the Caribbean reported net sales of USD453m, a 24% increase. In this region, its operating EBITDA increased by 33% to USD144m, compared to USD108m in 2010.
Fernando A González, Executive Vice President of Finance and Administration, said, "This is the fourth consecutive quarter of top-line growth in our results. We also saw stable consolidated pricing on a quarter-on-quarter basis in local-currency terms. We are particularly pleased with the quarterly performance of our operations in the Northern Europe and the South, Central American and Caribbean regions."
"We have raised USD80m in asset sales during the first nine months of 2011 and expect to raise an additional USD100-200m during the fourth quarter. We estimate total proceeds from asset sales will reach USD1bn by the end of 2012."
"We also continue to be confident in our ability to meet all of our financial obligations. We have also prepaid all of maturities under our Financial Agreement until December 2013 and proactively bolstered our liquidity needs," he added.