Displaying items by tag: Results
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.
Ireland: CRH’s sales in Asia dropped by 12% year-on-year in the first quarter of 2017. The building materials producer blamed the fall on a slow start to the year in the Philippines due to poor weather, high competition and low prices. No exact figures were provided in the company’s April 2017 trading update.
Overall, across all business lines, the group’s sales rose by 3% on a like-for-like basis. It reported that in the Americas sales were ‘in line’ with the prior year. In Europe sales rose by 6% due to stabilising markets with rises in cement sale volumes noted in Poland, Finland and France. Cement volumes were reported as ‘marginally behind’ in the UK.
QNCC reports lower Q1 profit
25 April 2017Qatar: Qatar National Cement Company (QNCC) reported that it made a net profit of US$23.3m in the first quarter of 2017, a 31% fall compared to a net profit of US$34.0m posted for the first quarter of 2016. QNCC is currently in the process of constructing a 5000t/day production line, its fifth, along with Fives Group of France.
UltraTech profit falls 12% in first quarter of 2017
25 April 2017India: Ultratech Cement has reported a fall of 11.84% in its net profit to US$107.1m for the quarter ending 31 March 2017, compared to 121.5m in the first quarter of 2016. However its total revenue rose by 4.25% to US1.21bn compared to US$1.16m a year ago.
For the year ending 31 March 2017, the company posted a rise of 10.87% in its net profit, which rose to US$409.1m. Revenue increased marginally by 1.44% to US$4.33bn.