Displaying items by tag: Results
Adelaide Brighton revenue rises 3.8% to US$1.1bn in 2013
25 February 2014Australia: Adelaide Brighton's revenue for 2013 has risen by 3.8% year-on-year to US$1.1bn. Its net profit fell by 1.2% to US$136m but excluding a one-off gain in 2012 its net profit rose by 3.9%. Adelaide Brighton said that it was starting to see returns from its capital expenditure (capex) programme in cement and lime and, given subdued volume growth in 2012, the company was yet to realise the full extent of the investment.
"Modest growth in underlying net profit on healthy sales is encouraging given that we are yet to see the full benefit to revenue and margins of our major capex programme and the recovery of residential demand has only just begun," said managing director Mark Chellew. "Adelaide Brighton's cement and lime exposure to resources and infrastructure again supported shareholder returns despite commercial and residential building activity being weak for much of the year."
The Australia-based construction materials company expects demand for cement and lime in 2014 to be similar to 2013. It also expects to consolidate returns from its cement mill upgrade at Birkenhead in South Australia to be consolidated in 2013. Chellew added that if the Australian carbon tax is removed by 1 July 2014 it could save the company an after tax benefit of US$1.8m compared to 2013.
Improved fourth quarter revives flagging annual finances for Lafarge
19 February 2014France: Lafarge's financial results for 2013 have been rescued by an improved fourth quarter year-on-year. It reported a 2% decrease in sales year-on-year to Euro3.71bn for the fourth quarter of 2013 fromEuro3.81bn in 2012. Overall sales for 2013 fell by 4% to Euro15.2bn from Euro15.8bn. The French-based multinational building producer reported increasing sales on a like-for-like basis for both the final quarter and the full year. It attributed the improvement to growing sales volumes, ongoing growth in most emerging markets, the recovery in the United States and stabilisation in Europe.
"In the fourth quarter we saw much more positive operational trends, accelerating compared to the third quarter, while exchange rates continued to be adverse," said Chairman and Chief Executive Officer of Lafarge, Bruno Lafont.
Sales volumes of cement for the 2013 financial year fell by 3% year-on-year to 137Mt from 141Mt. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 9% to Euro3.10bn from Euro3.42bn.
By region, sales volumes of cement fell in North America by 12% in 2013 to 11.3Mt from 12.8Mt but the residential sector in the US recovered. In Western Europe they fell by 14% to 14Mt from 16.4Mt but the French construction market was described as 'resilient' and sales rose in the UK. In Central and Eastern Europe they fell by 6% to 12.5Mt from 13.2Mt, with particular problems in Poland and Romania. In Middle East and Africa they fell by 2% to 44.4Mt from 45.2Mt with problems noted in Egypt, Morocco and Kenya. In Latin America they fell by 4% to 8.8Mt from 9.2Mt affected by 'subdued' growth in Brazil. Although on like-for-like basis they rose by 1%. In Asia cement sales rose by 3% to 45.8Mt from 44.3Mt led by a strong market in the Philippines despite Typhoon Haiyan.
For its outlook Lafarge expects to sees cement growth in its markets of between 2 to 5% in 2014 versus 2013 with markets benefiting from recovery in the US, stabilisation in Europe and on-going growth in emerging markets.
European cement production in 2013 – Problems head east
12 February 2014Recovery in the European cement markets arrived slowly in 2013. Balance sheets at HeidelbergCement, Cemex, Italcementi, Vicat and Buzzi Unicem appear to have stalled into something less than the recovery that everybody wants. The picture is more stable in Western Europe but declining revenues have headed east.
The European Commission's Autumn 2013 Economic Forecast has summed it up well, predicting that the European Union's (EU) gross domestic product (GDP) would remain static in 2013. On the strength of the results seen so far that feels about right. The cement industry in Europe hasn't continued to decline but the 'recovery' is slow. Yet a recovery is happening on the strength of these financial results so far. Compared to some of the sales declines seen in 2012 this is good news.
With results from the big European-based cement producers Lafarge and Holcim due later in February 2014, here is a summary of the European situation.
HeidelbergCement's revenue has remained flat in 2013 at Euro13.9bn although its cement, clinker and ground-granulated blast-furnace slag (GGBS) sales volumes have risen by 2.6% to 91.3Mt. Compare this with the 8.7% bounce in revenue from 2011 to 2012. By region, the problem areas have now shifted from losses in Western and Northern Europe to losses in Eastern Europe and Central Asia. Market pickup in the UK has driven this turnaround, despite diminished sales volumes in Germany.
Similarly, Cemex's sales have also remained flat at US$15.2bn. Both of its European areas have improved their sales, with sales losses only reported for the Northern Europe region. Again, sales in the UK drove overall business with France starting to improve too.
Italcementi had it tougher in 2013 with its sixth consecutive drop in revenue since 2008. Just like HeidelbergCement, the problem regions for Italcementi have shifted east in 2013 from Western Europe to the group's Emerging Europe, North Africa and Middle East area. However Italcementi is losing revenue in Western Europe faster than HeidelbergCement, mainly due to the poor Italian market.
Elsewhere, Vicat reported that its consolidated cement sales fell by 4% to Euro1.11bn. Sales decline lessened in France and the rest of Europe even saw sales rise by 4% to Euro427m. Buzzi Unicem saw its cement sales volumes remain static in 2013 at 27.4Mt.
Overall it may not feel great but it's better than the cement industry news for Europe we've been used to in recent years. With the European Commission Economic Forecast suggesting a 1.4% rise in GDP in 2014, the next 12 months look more promising.
Boral reports 73% jump in half year profit
12 February 2014Australia: Boral has reported that its half year underlying net profit jumped by 73% on the back of improved housing and road construction markets, cost cutting measures and dry weather conditions. The company saw its underlying net profit rise to US$81.5m in the six months to 31 December 2013. However, the company also warned of a slowdown in activity and earnings in the second half of the financial year, which runs until 30 June 2014.
Boral actually recorded a net loss of US$23.6m for the half year but this figure includes US$106m in one-off accounting charges related to its gypsum plasterboard joint venture, due to be completed on 28 February 2014, which it says will be offset by gains in the second half.
Chief executive Mike Kane highlighted a US$20.8m turnaround in the Australian building products division and a 6% lift in its largest division, building materials and cement.
"The rise was driven by strong project activity, very dry weather conditions in New South Wales and Queensland and the benefit of restructuring and overhead cost reduction initiatives," said Kane. "Despite expected underlying performance improvements, there will be a skew of earnings to the first half compared to the second half due to higher major project volumes, dry weather conditions in the first half and the impact of the gypsum joint venture."
The company achieved US$54.7m in cost savings, much of which came from cutting 1000 jobs. Boral plans to use much of a US$453m payment from its gypsum partner USG to reduce its US$1.26bn net debt.
Ciments Français revenue down 3.6% to Euro3.59bn in 2013
12 February 2014France: Ciments Français has reported that its total revenue fell by 3.6% year-on-year to Euro3.59bn in 2013 from Euro3.73bn in 2012. Like its parent company Italcementi, It blamed the drop on continued disruption in demand for building materials in Western Europe, with problems in Egypt and an uneven recovery in North America.
Overall sales volumes for cement and clinker fell by 3.8% to 37.9Mt. Sales revenue for cement and clinker fell by 4.8% to Euro2.39bn. By region, Western Europe and Emerging Europe, North Africa and the Middle East saw sales volumes decrease in 2013 and North America and Asia saw sales volumes increase. However sales revenues fell in all regions except Asia in 2013. In particular Ciments Français' revenue report mentioned Egypt's role in reducing sales volumes in 2013 in the Emerging Europe, North Africa & Middle East region due to fuel shortages.
ACC net income drops to US$1.75bn in 2013
12 February 2014India: ACC's net income has fallen slightly to US$1.75bn in 2013. However its net profit rose by 3% to US$174m. By business segment, cement sales fell slightly to US$1.71bn in 2013. The Indian cement producer made the announcement in a statement of consolidated audited financial results. In its statement ACC made no provision for a US$180m fine imposed on it by the Competition Commission of India for alleged cartel-like behaviour as it believes it can successfully appeal the penalty.
Italcementi revenue down 5.4% to Euro4.24bn in 2013
12 February 2014Italy: Italcementi has reported that its revenue fell by 5.4% year-on-year to Euro4.24bn in 2013 from Euro4.48bn in 2012. It blamed the drop on a continued fall in demand for building materials in Europe, a patchy recovery in North America and limited energy availability in Egypt that has decreased cement production capacity.
Sales volumes of cement and clinker fell by 6% year-on-year to 43.1Mt in 2013. Revenue for the company's cement and clinker segment fell by 6.4% to Euro2.72bn from Euro2.91bn. By region sales volumes fell by 9.3% to 14.5Mt in Central Western Europe and by 11.7% to 13.2Mt in Emerging Europe, North Africa and the Middle East. Its North America and Asia regions remained buoyant in terms of sales volumes in 2013 but North America saw its revenue fall by 2.5% to Euro429m.
Buzzi reports flat cement sales in 2013
12 February 2014Italy: Buzzi Unicem saw its cement sales remain flat at 27.4Mt in 2013. Overall net sales dropped slightly by 2.1% year-on-year to Euro2.75bn. In a preliminary results statement, the company reported growth in the US and Russia, recovery in central Europe in the second half of 2013 and continued market problems in Mexico, Italy and parts of eastern Europe.
Cemex reports sales up 2% globally in 2013
06 February 2014Mexico: Cemex has anounced that its consolidated net sales increased by 4% during the fourth quarter of 2013 to approximately US$3.9bn and increased by 2% for the whole of 2013 to US$15.2bn versus the comparable periods of 2012. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 4% during the fourth quarter of 2013 to US$642m and increased by 1% for the whole of 2013 to US$2.6bn versus 2012.
Cemex said that the increase in consolidated net sales was due to higher volumes in the US and its operations in the Mediterranean, Northern Europe, Asia and South, Central America and the Caribbean, as well as higher product prices in local currency terms in most regions. Operating earnings before other expenses in the fourth quarter increased by 30% to US$359m and increased by 17% to US$1.5bn for the full-year 2013.
Cemex reported a narrower controlling interest net loss of US$255m during the fourth quarter of 2013, down from a loss of US$494m in the same period of 2012. For the full-year 2013, controlling interest net loss improved to US$843m from a loss of US$913m in 2012.
Operating EBITDA during the fourth quarter increased by 4% to US$642m. For the full year 2013, operating EBITDA increased by 1% to US$2.6bn versus 2012. On a like-to-like basis and also adjusting for the pension plan effect, full-year 2013 operating EBITDA increased by 4%.
Fernando A González, Executive Vice President of Finance and Administration, said, "During 2013 we continued to deliver. This is our third consecutive year of EBITDA growth, driven by improvement in pricing and volume in most of our regions, the favorable operating leverage effect in the US and our continued initiatives to improve our operating efficiency."
The fourth quarter of 2013 by region
Net sales in Cemex's operations in Mexico decreased by 6% in the fourth quarter of 2013 to US$785m, compared with US$832m in the fourth quarter of 2012. Operating EBITDA decreased by 17% to US$247m versus the same period of 2012.
Cemex's operations in the US reported net sales of US$819m in the fourth quarter of 2013, up by 8% from the same period in 2012. Operating EBITDA increased to US$77m in the quarter, versus a US$13m profit in the same quarter of 2012.
In northern Europe, net sales for the fourth quarter of 2013 increased by 5% to US$1.1bn, compared with US$1.0bn in the fourth quarter of 2012. Operating EBITDA was US$79m for the fourth quarter, 1% lower than the same period of 2012.
Fourth-quarter net sales in the Mediterranean region were US$394m, 11% higher when compared to sales of US$354m during the fourth quarter of 2012. Operating EBITDA decreased by 5% to US$78m for the quarter versus the comparable period in 2012.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$577m during the fourth quarter of 2013, representing an increase of 11% over the same period of 2012. Operating EBITDA increased by 15% to US$183m in the fourth quarter of 2013, from US$159m in the fourth quarter of 2012.
Operations in Asia reported a 4% decrease in net sales for the fourth quarter of 2013, to US$133m, versus the fourth quarter of 2012. Operating EBITDA for the quarter was US$32m, up by 12% from the same period of 2012.
HeidelbergCement sees improvement in 2013 despite regional variation
06 February 2014Germany: HeidelbergCement has announced its unaudited results for the fourth quarter of 2013 and the full year of 2013.
The German multinational cement producer reported revenues of Euro13.94bn for 2013, a 3.4% increase on 2012 (like-for-like), although revenue was slightly down (by 0.6%) in absolute terms. Operating income before depreciation was also up in like-for-like terms (2.0%) but was down by 2.1% across all business at Euro2.42bn. Operating income was flat at Euro1.61bn in 2013, a 5.2% rise like-for-like and a 0.2% rise in absolute terms.
For the fourth quarter of 2013, HeidelbergCement took revenues of Euro3.48bn (up 6.9% like-for-like and down 0.3% in absolute terms), had an operating income of Euro661m (up by 1.8% like-for-like and down 5.3% in absolute terms) and had an operating income of Euro463m (up by 12.4% like-for-like and up by 2.4% in absolute terms.
HeidelbergCement reported that its cement sales volumes rose slightly year on year, driven by the positive development in sales volumes in its North America, Asia-Pacific and Africa-Mediterranean Basin regions, which more than offset the decline in demand elsewhere, particularly in eastern Europe. It sold 91.3Mt of cement, cement clinker and ground granulated blast furnace slag (GGBS) in 2013, a rise of 1.4% in like-for-like terms and a rise of 2.6% in absolute terms.
In the fourth quarter of 2013 it sold 23.6Mt of cement, cement clinker and GGBS, which was 6.3% more than in 2012 in like-for-like terms and 7.5% more in absolute terms. HeidelbergCement said that its fourth quarter sales volumes had benefited from milder than usual weather that led to an extended construction season in Europe.
Western and northern Europe
For 2013 as a whole, HeidelbergCement reported that its interests in western and northern Europe benefited from the emerging recovery in demand for building materials in the UK, which was driven by private residential construction and large infrastructure projects in London. Sales volumes of cement at its UK plants increased from low levels by a double-digit percentage. In Benelux and Northern Europe, sales volumes were steady or saw only a marginal decline. Sales volumes in Germany diminished, partly as a result of the long period of bad weather at the beginning of 2013.
Despite a slight overall decline in sales volumes in this region, revenue before exchange rate effects remained largely stable thanks to successfully-implemented price increases. Falling energy costs also had a positive impact on operating income and profit margins.
Revenue for northern and western Europe was Euro4.15bn, a real-terms fall of 1.3% (a 0.3% fall like- for-like). Operating income was Euro319m, a 4.9% increase in real terms over 2012 (a 5.6% fall like-for-like). Cement sales for the region came in at 20.9Mt, a 1.8% fall when compared to 2012.
Eastern Europe and central Asia
Over the course of 2013, HeidelbergCement had a difficult year in eastern Europe and central Asia. In the first half of 2013, construction activities were adversely affected by the long winter and demand for building materials saw a decline in many countries of eastern Europe due to weak economic development and low infrastructure expenditure. In addition, prices were under pressure in a number of markets, the result of the combination of low demand and increased competition. Increases in sales volumes in Russia due to an increase in the capacity of the Tula plant near Moscow and a slight volume increase in Georgia did not compensate for the weak demand.
The situation improved in the second half of 2013. Poland was the first country in eastern Europe to show signs of a recovery. The fourth quarter was also boosted by a sustained period of mild weather. As a result, revenue and operating income improved despite negative exchange rate effects.
Revenue for the region in 2013 came to Euro1.34bn, a 4.2% decline like-for-like and a 6.9% decline in absolute terms. Operating income was Euro150m, a 20% drop in like-for-like terms and a 21.8% dip in absolute terms. Cement, clinker and GGBS sales for the region were 16.7Mt in 2013, a 2.9% drop in both real and like-for-like terms compared to 2012.
North America
In 2013 the recovery of cement demand continued in North America, driven particularly by growth in residential construction. HeidelbergCement reported that revenue and results in North America had benefited from successfully-implemented price increases in 2013 but that these parameters were also adversely affected by the weakening of the Canadian Dollar in comparison with the Euro.
Revenue for North America was Euro3.41bn in 2013, a 3.4% rise in like-for-like terms and a 1% fall in real terms. Operating income was Euro378m, a 19.9% rise in like-for-like terms and a 17.4% rise in real terms. HeidelbergCement sold 12.5Mt of cement, clinker and GGBS in North America in 2013, a 6.8% rise in both like-for-like and absolute terms.
Asia-Pacific
Demand for HeidelbergCement's products remained very strong in its Asia-Pacific region, with construction activity stimulated by the economic growth in the region. Sales volumes also benefited from the increase of its share in Cement Australia from 25% to 50%. The Asia-Pacific Group area recorded the largest negative exchange rate effect as a result of the weakness of the Indonesian Rupiah and Australian Dollar against the Euro.
Revenue for HeidelbergCement in Asia-Pacific came in at Euro3.42bn in 2013 as a whole, a 5.2% like-for-like rise year-on-year and a 1.7% fall in real terms. Operating income for the year was Euro686m, a 0.7% rise like-for-like and a 6.3% fall in absolute terms. The company sold 31.9Mt of cement, clinker and GGBS in the region, a 3% rise in like-for-like terms and a 6.3% rise in absolute terms.
Africa and Mediterranean basin
HeidelbergCement reported a continuation of positive demand development in Africa in 2013. It said that it was able to increase its cement deliveries, partly as a result of new capacity. The building materials business in Turkey also developed positively and only the Spanish market remained in decline in this region. Although revenue and results in the Africa-Mediterranean Basin Group area were also impaired by negative exchange rate effects, HeidelbergCement reported that it was able to improve these figures thanks to strong operational development in Turkey and Israel.
Outlook for 2014
In North America, HeidelbergCement reports that it expects a continuing economic recovery and consequently a further increase in demand for building materials.
In eastern Europe, a stabilisation of the national markets is expected following the weak phase experienced during 2013. Poland should be the first country in this area to benefit from the emerging recovery. In central Asia, a further rise in demand for building materials is anticipated. In western and northern Europe, positive market development is expected in all countries. This is based on the healthy economic development in Germany and northern Europe as well as a recovery in the UK and Benelux. In Asia and Africa, HeidelbergCement still expects sustained growth in demand.
"Considering the positive outlook for the world economy and our advantageous geographical positioning, we are cautiously confident about the future," said Bernd Scheifele, CEO of HeidelbergCement. "However, substantial macro-economic risks still remain. The effect of the tapering of the Federal Reserve on the currencies in emerging countries represents a considerable uncertainty. The decline in exchange rates in the second half of 2013 will also impair our revenue and results, particularly in the first half of 2014."
"We will focus on what we can directly influence: the management of our operational business," continued Scheifele. "In 2014, we will once again work on further improving our margins by means of our ongoing programmes and a continued focus on reducing costs and increasing efficiency. Price increases will continue to be at the forefront of our efforts in 2014."
The complete consolidated financial statements of HeidelbergCement including a full outlook will be published on 19 March 2014.