Displaying items by tag: Results
CRH operating profit grows by 39% to Euro1.28bn in 2015
03 March 2016Ireland: CRH’s operating profit has grown by 39% year-on-year to Euro1.28bn in 2015 from Euro917m in 2014. Its sales revenue grew by 25% to Euro23.3bn from Euro18.9bn. Favourable weather, encouraging markets and currency benefits were all attributed to the positive result.
“As a result of good performance from our heritage businesses and contributions from acquisitions, 2015 was a year of significant profit growth for CRH. Strong cash generation resulted in our year-end debt metrics being ahead of target, and we are well on track to restoring these metrics to normalised levels during 2016. Recently there has been some uncertainty about the pace of global growth. Our focus remains on consolidating and building upon the gains made in 2015. Against this backdrop, we believe 2016 will be a year of continued growth for the Group,” said Albert Manifold, chief executive of CRH.
The group’s Europe Heavyside division, which includes cement production, reported a fall of 8% year-on-year to Euro3.61bn in 2015 from Euro3.93bn in 2014. Operating profit fell by 11% to Euro135m from Euro151m. Challenging business conditions were noted in Switzerland, France, Germany and Finland.
For CRH’s acquisitions from Lafarge and Holcim, the group reported that trading results were above expectations. Good performances were noted in the UK, Europe and the Philippines. However, market challenges were encountered in France, Germany and Brazil. CRH completed its purchase of Lafarge and Holcim’s European and American assets on 31 July 2015. It then completed its purchased of assets in the Philippines on 15 September 2015.
In 2016 CRH expects continued growth in the US, growth in Asia, buoyed by the Philippines and growth in parts of Europe including the UK, Ireland and the Netherlands. More difficult market conditions are anticipated in Switzerland, Belgium, Germany and France.
Philippines: Holcim Philippines has reported a rise in net profit of 58% year-on-year to US$171m in 2015. Its revenue rose by 15% to US$793m. It attributed the gain to increased government spending in infrastructure projects and higher construction activity. Profits also benefited from a US$55m gain from the revaluation of an investment in an affiliate. The LafargeHolcim subsidiary also reported that it is increasing its cement production capacity to 10Mt in 2016 from 8Mt in 2015 to benefit from anticipated infrastructure spending.
Spain: Cementos Molins has reported a rise in its net profit of 65% year-on-year to Euro50.8m in 2015. The Spanish cement producer also managed to reduce its loss in the Spanish market to Euro13.1m in 2015 from Euro27.7m in 2014. Sales outside of Spain also improved, with its profit rising by 9% to Euro64m. Particular improvements were noted in Mexico (20%) and Argentina (37%), according to Expansion.
Colombia: Cementos Argos has reported that its net consolidated income rose by 83% year-on-year to US$556m in 2015 from US$305m in 2014. Its revenue rose by 40% to US$7.91bn from US$5.67bn. The rise in profit was attributed to an increase in market profitability and operational effectiveness.
“The record-setting results obtained in 2015 are the results of a well-planned coherent work during the last decade aimed at transforming a local company into a multinational player devoted to the cement and concrete business,” said Jorge Mario Velásquez, CEO of Cementos Argos.
Overall cement production volumes for the Colombia-based multinational building materials producer rose by 14% to 14.3Mt in 2015. Cement production volumes rose by 13% to 6.2Mt in Colombia. Cement production volumes rose by 20% to 3.4Mt in the US and by 21% to nearly 4Mt in the company’s Caribbean and Central American division.
Cementos Argos also noted that it completed its US$125m expansion of its Rioclaro Plant in 2015. The upgrade has increased the plants production capacity by 0.9Mt/yr.
Cimpor reports loss of Euro71.2m in 2015
26 February 2016Portugal: Cimpor has reported a loss of Euro71.2m in 2015 down from a net profit of Euro27.2m in 2014. Sales fell by 4.3% to Euro2.49bn from Euro2.60bn. Cement and clinker sales volumes fell by 6% to 28.1Mt from 30Mt. Like its parent company InterCement, the cement producer attributed the loss to an economic downturn in Brazil and unfavourable exchange rates.
InterCement makes Euro43.7m loss in 2015
25 February 2016Brazil: InterCement made a loss of Euro43.7m in 2015. In 2014 it made a profit of Euro50.1m. Its revenue fell by 4% to Euro2.49bn from Euro2.6bn. It attributed the loss to an economic downturn in Brazil and unfavourable exchange rates.
“This was undoubtedly a challenging year for InterCement, particularly due to the macroeconomic situation in Brazil, which accounts for about 35% of the cement production, the largest contribution within the company. The scenario was even more complex, as coupled with the economic downturn in the largest market where it operates, InterCement faced average unfavourable exchange rates,” said CEO Ricardo Fonseca de Mendonça Lima in a statement.
He added that the company’s decrease in earnings before interest, taxes, depreciation and amortisation (EBITDA) margin remained high in the international cement market at 20.8%. EBITDA fell by 18.2% to Euro518m in 2015. The cement producer reported that overall cement and clinker sales fell by 6.1% to 28.1Mt in 2015 from 30Mt in 2014.
By region, InterCement has temporarily suspended it grinding plants at Jacarei and Suape and its clinker kiln at João Pessoa in Brazil to cut costs. By contrast its plants in Argentina were working a full capacity in 2016. Co-processing developments were noted in Egypt and Portugal. The Alhandra cement plant in Portugal was the first unit in the company to beat a 50% co-processing monthly rate. A production decline was reported in Cape Verde and operational difficulties in Mozambique led to a kiln stoppage.
East African Portland Cement issues profit warning
25 February 2016Kenya: East African Portland Cement (EAPCC) has issued a profit warning due to mounting losses caused by higher financing costs and currency market losses. Its loss for the half year that ended on 31 December 2015 grew to US$5.22m from US$0.64m in the same period in 2014. The cement producer also expects its profits for the 2015 – 2016 financial year, which ends on 30 June 2016, to fall by at least 25%.
EAPCC’s financing costs rose by 50% to US$2.74m, which it attributed to increased use of debt to finance capital projects, including the setting up of a third packing line to support higher sales volumes. Sales revenue rose by 12% year-on-year to US$45.2m from US$40m. Sales volumes rose by 16%.
Semen Indonesia net profit drops by 18.7% to US$337m in 2015
25 February 2016Indonesia: Semen Indonesia has reported that its net profit fell by 18.7% year-on-year to US$337m in 2015 from US$415m in 2014. Its revenue fell slightly to US$2.01bn. The cement producer’s director Suparni attributed the fall in net profits to an increase in electricity and distribution costs, as well as the depreciation of the rupiah against the US Dollar.
Semen Indonesia plans to increase exports in 2016 in order to counteract falls in sales in the domestic market, according to local press. The company expects to begin operations at two new cement plants, Indarung VI in West Sumatra and Rembang in Central Java, in the third quarter of 2016. The two cement plants will have production capacities of 3Mt/yr each.
Adelaide Brighton profit rises by 20% to US$150m
25 February 2016Australia: Adelaide Brighton has reported that its net profit rose by 20% to US$150m in 2015 from US$124min 2014. Its revenue grew by 5.6% to US$1.02bn from US$964m. The construction materials company attributed the growth to ‘healthy’ residential construction in east coast markets.
“Cement and clinker sales volumes increased marginally in 2015. Strong demand in New South Wales, Victoria and south east Queensland, was primarily driven by residential construction. This demand more than offset the previously anticipated reduced sales to a major South Australian customer and lower sales to resource projects in Western Australia and the Northern Territory,” said the company in a statement.
It added that import volumes continued to grow in 2015 as Adelaide Brighton used imports to meet domestic demand, whist reducing local manufacturing capacity in Western Australia. The company made savings of US$7.2m in 2015 by stopping clinker production at its Munster plant.
Lucky Cement reports US$60m net profit for second half of 2015
23 February 2016Pakistan: Lucky Cement has reported a 11.7% year-on-year rise in its net profit to US$60m in the half-year that finished on 31 December 2015. Its net sales revenue rose by 2% year-on-year to US$209m from US$204m. It attributed the rise to an increase in sales volumes.
Local sales volumes for the company for the period increased by 19.7% to 2.42Mt from 2.02Mt. However, export sales volumes fell by 27% to 0.9Mt from 1.23Mt.
Lucky Cement has also decided to set up another 10MW waste heat recovery (WHR) plant at its Pezu Plant, which is expected to be completed by December 2016. The company additionally reported on progress at other projects, including an integrated cement plant in the Democratic Republic of Congo, a 660MW coal-based power project, a 50MW wind farm and an electricity supply to Pesco and a WHR unit at the Pezu power plant.