Displaying items by tag: Results
Italy: Cementir Holding has reported a pre-tax profit of Euro3.8m in the first quarter of 2015 compared with a pre-tax loss of Euro1.8m in the same period of 2014. Revenues fell by 0.9% to Euro205m. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 1.6% to Euro24.2m. Net financial debt widened to Euro326m at the end of March 2015 from Euro278m at the end of 2014. For the entire 2015, Cementir expects an EBITDA of some Euro190m and a net financial debt of around Euro230m.
Nigeria: The chairman of Ashaka Cement, Mallam Suleiman Yahyah, has said that the performance of the company in 2014 showed the resilience of the management and commitment of its parent firm, Lafarge Africa, to sustenance of investment in the north eastern part of the country. Despite losing US$7.54m to insurgents attack in 2014, Ashaka Cement ended the year with a profit after tax of US$22.9m, up from US$14.2m in 2013.
"We have embarked on the expansion of our cement production capacity to 4Mt/yr. The expansion will comprise debottlenecking of the existing line and installation of new line," said Yahyah. He added that Ashaka Cement's target is to achieve 95% coal substitution and to introduce a major corporate social responsibility (CSR) schemes that will help the community with agricultural development.
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.
India: Birla Corporation has reported a 9% growth in its standalone net profit at US$4.45m for the quarter that ended on 31 March 2015. Its total standalone income rose marginally to US$125m in the quarter of the last fiscal from US$124m in the prior year period. During the fourth quarter of its 2015 financial year, cement production declined by 2.7% year-on-year to 1.87Mt. Cement dispatches also fell by 1.31% to 1.88Mt during the period.
During the 2014 - 2015 financial year, cement production was up by 3.77% year-on-year to 7.62Mt, while cement dispatches rose by 4.42% to 7.67Mt. Birla Corp's consolidated net profit during the year rose by 35% year-on-year to US$27.4m from US$20.3m in the same period of the previous year. Revenue grew by 6% year-on-year to US$502m.
"Barring the first quarter of the current financial year, cement demand and prices remained sluggish. East, North and Central markets, in particular, were the worst hit," said Birla Corp. Weak monsoon and widespread unseasonal rain during the last quarter of the year in the North and Central parts of the country reduced cement demand.
The performance of the company was 'severely impacted' due to coal shortages. According to Birla Corp, it had to procure coal from the open market, including imports, at a substantially higher cost. "The grid power rates have gone up. Also, the cost of power generation by the company increased due to the purchase of coal from the open market. Though road freight cost came down during the year on account of lower diesel prices the saving was negated by higher railway freight," it added. High limestone costs also added to the production cost.
"With the prediction of weak monsoon in the current financial year, the demand from the rural market may be impacted adversely," said Birla Corp. However, initiatives such as developing infrastructure, smart cities, 'Make in India,' concrete roads and an increase in the allocation of funds to states is likely to help improve the demand. "While signals are positive, ground-level actions will help 'rev up' the economy. It is expected that the demand - supply mismatch will reverse for the better, with a slower pace of capacity addition. Proposed implementation of Goods and Services Tax (GST) is expected to simplify the tax structure, benefiting the cement industry."
Greece: Titan Group has reported that in the first quarter of 2015 its consolidated turnover grew by 12.7% year-on-year to Euro284m. Its earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 23.7% year-on-year to Euro23.2m. Its net profit after minority interests and the provision for taxes grew to Euro6.6m compared to a Euro11m loss in the prior year period.
The continuing recovery in the US and the improvement in the Greek market due to the continuation of public works and the higher profit margins on exports had positive effects on operating results. However, profitability declined significantly in Southeastern Europe and Turkey due to the heavy winter, as well as in Egypt, where prolonged gas shortages necessitated the production of cement through imported clinker in order to meet domestic demand. The group is currently undertaking significant investments in Egypt which will enable the utilization of solid and alternative fuels and allow for the gradual recovery of the plants' operating capability.
Group net debt at the end of the first quarter stood at Euro660m, increased by Euro119m compared to 2014 year-end. Group debt levels reflect the increased investments undertaken primarily in the US and in Egypt, increased working capital requirements in growth markets, the seasonality in demand, as well as the negative effect on US Dollar and Egyptian Pound-denominated debt owing to foreign exchange movements.
Total turnover for Greece and Western Europe in the first quarter of the year declined by 2% to Euro65.3m. EBITDA grew to Euro9.4m compared to Euro3.9m in the same period in 2014.
In the US, despite the severe weather witnessed in the first two months of the year, the construction industry continued to recover, resulting in a tangible improvement in Titan America's results. The strengthening of the US Dollar also contributed to results. Total turnover in the US for the first quarter of 2015 grew by 37.5% to Euro130m while EBITDA reached Euro5.8m compared to Euro0.9m in 2014.
In Southeastern Europe, the harsh winter considerably affected building activity, resulting in a significant decline of results compared to the favourable winter experienced in 2014. Turnover declined by 31.2% to Euro28.2m while EBITDA reached Euro4.2m compared to Euro9.7m in 2014.
In Egypt, demand remained stable. The utilisation rate of production facilities improved compared to the second half of 2014 low levels due to the completion of the investment in solid fuels grinding at one of Titan's production lines at Beni Suef. However, the continuing disruptions in natural gas supply at other production lines led to the need for lower margin imports in order to meet demand. Overall, turnover in Egypt increased by 21.9% to Euro60.2m. Compared to the first quarter of 2014, when sales were met by domestic production, EBITDA declined from Euro15.9m to Euro3.9m.
In Turkey, due to the heavy winter, demand for building materials declined. Adoçim Çimento (in which Titan Group holds a 50% stake) posted lower volume sales and results versus the first quarter of 2014.
The market trends recorded in the beginning of the year are consistent with the group's positive outlook for 2015, despite significant uncertainties and challenges. This reserved optimism can be attributed to the expectation of improved operating results from the group's two most important markets: the US and Egypt. The recovery of the US market continues unabated within the context of a broader US economic recovery. In order to meet higher demand and improve competitiveness, the group is increasing capital spending. In Egypt, demand for building materials is expected to remain at high levels, supported by both private and public construction. The group expects to recover production and sales volumes in 2015, following the investments undertaken in order to ensure the gradual self-sufficiency of the plants, in terms of their fuel needs.
In Greece, private construction continues to decline with no recovery expected in 2015 due to the dire economic conditions prevailing in the country. Cement consumption in 2015 is expected to remain at the same levels as in 2014, mainly supported by roadwork activity. Construction activity in Southeastern Europe appears stable, although cement demand is considerably below the group's capacity. No significant improvement is expected in the short-term since the region continues to be affected by the weakness of Eurozone neighbour countries.
Germany: HeidelbergCement has posted a 29% rise in core earnings in the first quarter of 2015 as it has benefited from a construction industry recovery in North America and the UK as well as low energy prices and the weak Euro. Operating income before depreciation (OIBD) was Euro299m and sales rose by 4% on a like-for-like basis to Euro2.84bn.
"Business development in the first quarter has strengthened our conviction in our outlook for 2015," said chief executive Bernd Scheifele. HeidelbergCement has reiterated its aim for significant improvements in 2015 sales, operating income and adjusted net profit thanks to strong demand in its core markets, the weaker oil price and Euro and efficiency measures.
HeidelbergCement also anticipates a significant decrease in financing costs due to the decline of net debt to Euro6.1bn from Euro7.8bn, following the sale of its building products business.
CRH forecasts earnings growth of 10%
07 May 2015Ireland: CRH has forecast earnings growth of close to 10% for the first half of the year as it reported 'modest growth' in Ireland.
CRH said that group sales for the first four months of 2015 rose by 2.5% compared with the same period of 2014. The strong performance was largely driven by positive momentum in the Americas, where the economic and business environment remained upbeat. Sales in the US rose by 8% as CRH benefited from improving construction activity. In Europe, trends are improving across CRH's main markets, but sales fell by 2%. In Ukraine, CRH said that the markets were resilient despite the political instability, but that cement volumes were below the prior year. CRH reported a 'continued recovery in market conditions' in Ireland and said that it was 'well-positioned to benefit from modest growth.'
Looking to the first six months of 2015, CRH said that it expected earnings to be 'close to 10% ahead of last year on a constant currency basis' and predicted further progress in the second half of the year with earnings again ahead of 2014. These forecasts do not take into consideration the impact of CRH's proposed acquisition of certain assets from Lafarge and Holcim for Euro6.5bn.
CRH disposed of assets worth Euro540m in the first four months of 2015, bringing total proceeds from its divestment programme to Euro900m since its inception in August 2014. CRH said that its cost-reduction programme remained on track to deliver a further Euro75m of savings in 2015, which would bring cumulative (2007 - 2015) savings to Euro2.6bn.
Oman: Raysut Cement's operating profit fell by 26.7% in the first quarter of 2015 on a 100% increase in the price of natural gas supplied by the government and rising transportation costs. Group operating profit fell to US$15.6m from US$21.4m in the same period of 2014.
'This is mainly due to the increase in natural gas price by the government to US$3/MMBtu from US$1.5/MMBtu effective from 1 January 2015 and increases in other costs," said Raysut Cement said in its directors' report.
The report said that the quarter that ended on 31 March 2015 was very challenging compared with any of the previous quarters in the recent past. "Gas is a significant component of cost and the price was doubled. Transportation costs are on the rise due to restrictions on tonnage and the cascading effects of all have significant bearing on the cost of the product." In addition, the company said that the disturbances in Yemen, one of Raysut Cement's main export markets, have had a bearing on sales volumes.
During the quarter, group revenue fell by 1.6% to US$63.5m from US$64.5m in the same period of 2014. "Given the situation, the company has done extremely well in the first quarter to reach a level of revenue which is close to that of the previous year. By positioning the products in appropriate markets the average price realisation improved, neutralising the effect of cost increase to an extent. On the other hand, severe competition from UAE suppliers is continuing."
Raysut Cement sold 976,019t of cement and 3958t of clinker during the first quarter of 2015 compared to 100,6024t of cement and 7384t of clinker in the corresponding period of 2014. This represents a decrease by 2.98% in cement and 46.4% increase in clinker.
Podilskiy Cement posts Euro121m loss for 2014
06 May 2015Ukraine: Podilskiy Cement has reported a loss of Euro121m for 2014, having upped its net revenue by 12.1% year-on-year to Euro53.8m. In 2013, it reported a loss of Euro4.95m. Podilskiy Cement has six cement kilns with a total capacity of 3.7Mt/yr. It is controlled by Ireland's CRH.
Cemex reports higher prices and volumes in 2015
05 May 2015Mexico: Cemex has announced that in the first quarter of 2015, which ended on 31 March 2015, it achieved higher prices in local currency terms in most operations, as well as higher volumes in Mexico, the US and Asia.
Cemex's consolidated net sales reached US$3.4bn during the first quarter of 2015, an increase of 7% year-on-year on a like-for-like basis for ongoing operations and adjusting for currency fluctuations. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 6% year-on-year to US$569m. On a like-for-like basis, operating EBITDA increased by 14% in the same period. On a like-for-like basis, operating earnings before other expenses, net, in the first quarter increased by 33% to US$335m.
Cemex has reported a narrower controlling interest net loss of US$149m during the first quarter of 2015 from a loss of US$293m in the same period of 2014. Its controlling interest net income was a loss of US$149m, an improvement over a loss of US$293m in the same period of 2014.
"We are pleased with our first-quarter results," said Fernando A Gonzalez, CEO of Cemex. "Our net sales increased by 7% year-on-year, while operating EBITDA improved by 14% on a like-for-like basis. EBITDA generation was the highest since 2008, despite adverse currency fluctuations. We are encouraged by the performance of our operations in Mexico, where first-quarter cement volumes grew by 13%, reaching the highest level in six years. This quarter, on top of the sustained increase in our volumes to the industrial, commercial and formal residential sectors, we also saw growth in the infrastructure and informal residential sectors. Cement demand from the infrastructure sector grew by 6%, marking an inflection point driven by increased public-works spending, while demand from the informal residential sector grew by 11% as a result of higher consumer confidence due to improvements in employment, disposable income and remittances."
Net sales in Mexico increased by 4% in the first quarter of 2015 to US$766m, compared with US$737m in the first quarter of 2014. Operating EBITDA increased by 4% to US$262m.
Cemex's operations in the US reported net sales of US$868m in the first quarter of 2015, up by 10% from the same period in 2014. Operating EBITDA increased to US$64m in the quarter compared to US$28m in the same quarter of 2014.
In Northern Europe, Cemex's net sales for the first quarter decreased by 23% to US$701m, compared with US$912m in the first quarter of 2014. Operating EBITDA was US$36m compared to US$13m in 2014. On a like-for-like basis for the ongoing operations and adjusting for currency fluctuations, net sales remained flat and operating EBITDA increased 80% year-on-year.
First quarter net sales in the Mediterranean region were US$375m, 9% lower than the US$412m in the first quarter of 2014. Operating EBITDA decreased by 11% to US$73m for the quarter. On a like-for-like basis, for the ongoing operations and adjusting for currency fluctuations, net sales increased by 2% and operating EBITDA decreased by 3%.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$468m during the first quarter of 2015, representing a 13% decrease over the same period of 2014. Operating EBITDA decreased by 21% to US$148m in the first quarter of 2015, from US$187m in the first quarter of 2014.
Operations in Asia reported a 13% increase in net sales for the first quarter of 2015 to US$164m and operating EBITDA rose by 43% year-on-year to US$37m.