Displaying items by tag: Results
France: Improvements in its French market have led to modest gains for Vicat in the first quarter of 2017. The group’s consolidated cement sales rose by 4.5% on an adjusted basis to Euro283m compared to the same period in 2016. Overall its sales rose by 1.4% on an adjusted basis to Euro554m. Its cement sales volumes rose by 1.2% year-on-year to 4.8Mt from 4.83Mt.
“France continued its progressive recovery, while the US posted further growth in its business. In Asia, a firm performance in India partly helped to make up for the business downturn in Kazakhstan and Turkey, where very difficult weather conditions took their toll. In the Africa and Middle East region, Egypt posted a strong top-line increase at constant scope and exchange rates, which made up for the decline in West Africa,” said group chairman and chief executive chairman Guy Sidos.
Tanzania: Tanga Cement’s revenue dropped by 20% year-on-year to US$75m in 2016 from US$94m in 2015 due to competition and lower government spending on infrastructure. However, despite falling net profits it managed to increase its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) to US$17m from US$13m following cost cutting. The cement producer commissioned its second integrated production line in August 2016, increasing its production capacity to 1.25Mt/yr.
India: Ambuja Cement says it has ‘largely’ put demonetisation behind it as its net sales rose by 5% year-on-year to US$395m in the first quarter of 2017 from US$375m in the same period of 2016. Its cement sales volumes rose by 3% to 6.02Mt from 5.86Mt. However, the subsidiary of LafargeHolcim’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 13% to US$61m from US$70m due to higher petcoke and imported coal prices.
“Improving sales volumes, combined with favourable pricing, contributed to a positive quarter despite rising costs. With demonetisation largely behind us, we are well placed to serve both small and large customers,” said Ajay Kapir, managing director and chief executive officer of Ambuja Cement.
Dangote Cement builds revenue in first quarter of 2017 despite falling cement sales volumes
02 May 2017Nigeria: Dangote Cement’s sales revenue and earnings rose in the first quarter of 2017 due to higher prices despite a significant fall in cement sales volumes in its home country. Its sales revenue increased by 48.1% year-on-year to US$682m from US$460m in the same period of 2016 and its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 42.3% to US$337m from US$237m. However, its cement sales volumes fell by 6.4% to 6.03Mt from 6.44Mt caused by a drop of 16.5% in Nigeria.
“Dangote Cement produced record financial results in the first three months of 2017. Despite lower group volumes, we delivered significantly higher revenues and EBITDA after realigning prices late in 2016. Our new pricing strategy meant every tonne worked harder for us in Nigeria, delivering 78.4% more EBITDA/t than the same quarter last year,” said chief executive officer Onne van der Wijde. He added the group has started sourcing coal from Nigerian mines run by its parent company, Dangote Industries, and that this had improved margins, reduced its need for foreign coal and the foreign currency required to buy it.
The group has continued to grow its operations outside of Africa to the extent that they represent 28% of its revenue. It reported a ‘good’ start for a new import and bagging facility in Sierra Leone that began operations in January 2017 and stated that it expects to start a 1.5Mt/yr plant in Congo in May 2017.
China National Building Material grows revenue by 10% to US$3.03bn in first quarter of 2017
28 April 2017China: China National Building Material Company’s (CNBM)’s operating revenue grew by 10% year-on-year to US$3.03bn in the first quarter of 2017 from US$2.75bn in the same period in 2016. Its net profit grew by 50% to US$41m from US$27.6m. The result represents a turnaround in the company’s performance following stagnant growth in 2016.
Holcim Philippines reports tough first quarter in 2017
28 April 2017Philippines: Holcim Philippines has blamed lower public infrastructure spending, tighter industry competition and higher production expenses for a drop in its financial performance in the first quarter of 2017. Its net sales fell by 12% year-on-year to US$176m and its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 32% to US$40m. The subsidiary of LafargeHolcim also attributed its problems to rising fuel costs and a declining local currency. It estimates that cement demand in the country fell in the quarter year-on-year due to higher infrastructure spending in the lead-up to the election in 2016.
“Infrastructure and innovation are cited as pillars for the country’s 2017 productivity growth forecast at 6.4% gross domestic product (GDP) growth. These pillars are strengths of Holcim Philippines that we believe will buoy the company and make a big difference for customers. This region has been showing strong growth, giving us the optimism to continue to transform and serve our customers even better,” said chief operating officer Sapna Sood in a bullish mood.
Mexico: Cemex’s net sales for the first quarter of 2017 have been hit by poor sales in the US, Europe and Asia, Middle East and Africa. Its overall net sales rose by 1% year-on-year to US$3.14bn in the quarter from US$3.11bn in the same period in 2016. However, net sales fell by 2% to Euro834m in the US, by 2% to Euro711m in Europe and by 20% to Euro326m in Asia, Middle East and Africa. The group’s overall cement sales volumes remained stagnant at 15.6Mt.
“We continued to see favourable results from our value-before-volume strategy during the quarter. Sequential and year-over-year pricing increased in the low- to mid-single digits for our three core products. This, together with favourable volume dynamics in Mexico and our Europe and South, Central America and Caribbean regions led to solid growth in consolidated sales and operating EBITDA, on a like-to-like basis. In addition, net income increased close to a tenfold during the quarter,” said chief executive officer Fernando A Gonzalez. He added that the group reduced its total debt by US$470m in the quarter.
By region the group reported a more mixed situation with cement sales volumes increases in all territories except for the US and Asia, Middle East and Africa with particular strong performance in Mexico and Central and South America. In the US sales volumes suffered from poor weather in the western states and a decreasing infrastructure spend. In South, Central America and the Caribbean despite overall gains in sales Colombia reported falling cement sales volumes due to local economic issues. In Europe cement sales volumes fell by 10% in the UK yet growth was recorded notably in Spain and France. Finally, cement sales volumes fell by 9% in the Philippines and by 32% in Egypt.
Thailand: Siam Cement Group’s Building Materials division’s sales fell by 2% year-on-year to US$1.29bn in the first quarter of 2017 due to lower prices and falling volumes in the local market. The group reported that domestic cement demand fell by 7% in the quarter due to flooding in the south of the country. Earnings before interest, taxation, depreciation and amortisation (EBTIDA) for the division were also negatively affected by the weather falling by 10% to US$181m. Overall the group’s sales and EBITDA rose due to earnings from its Chemical division.
Philippines: Albert Manifold, the chief executive officer of CRH, has defended his company’s investment of up to Euro350m in the Philippines despite reporting a 12% drop in sales in the first quarter of 2017. Under questioning from analysts in a conference call admitted that about a quarter of cement demand in the country is currently being served by imports from Southeast Asia that is also reducing local prices, according to the Irish Times. However, he insisted that local producers, including CRH, will have an advantage as they increase production capacity due to constant production and ‘guaranteed’ regulation and certification. Manifold also conceded that his company’s performance in the Philippines illustrates the ‘volatility of emerging markets.’
China: Anhui Conch Cement’s net profit has grown by 86% year-on-year to US$312m in the first quarter of 3017 from US$168m in the same period of 2016. Its revenue rose by 29% to US$1.98bn from US$1.54bn. It attributed the gains in profit to increases in sales volumes and prices.