Displaying items by tag: Results

China: Jiangxi Wannianqing Cement, a Shenzhen-listed producer of cement and clinker, has estimated that the company's net profit has decreased by 60-70% year-on-year in 2012 compared to a net profit of US$81.4m in 2011. The company made the announcement in a performance forecast that was released on 14 January 2012.

Vietnam: Vietnam's cement sales in 2012 reportedly fell by 3.5% to 54Mt due to low demand in the domestic market, according to the Vietnam Cement Association (VNCA). The country's cement sales in its domestic market fell by 7.71% year-on-year to 45.5Mt. Cement and clinker exports rose by 30% to 8.5Mt.

In 2012 local cement makers faced many difficulties such as large inventories and low domestic demand created by a static real estate market. High production costs, high lending interest rates and high input costs for materials such as fuel, power and coal all adversely affected local cement producers. Cement and clinker exports have also been disrupted due to some firms 'unfairly' cutting their export prices.

For 2013 the VNCA has predicted that local cement producers will continue to face difficulties. However the government has approved spending of US$480m on new rural constructions and will encourage the use of local cement for transportation infrastructure projects. Vietnam's domestic cement sales are predicted to rise by 5-8% year-on-year to 48-49Mt in 2013, equal to the total sales seen in 2011.

Deputy Minister of Construction Nguyen Tran Nam said that the local cement sector must focus on dealing with three main problems: export promotion, production cost reduction and enterprise restructure. He also called on local cement companies to cooperate on exports instead of undercutting each other.

Pakistan: Cement exports from Pakistan have fallen by 5.28% to 4.22Mt, according to figures on the first six months of the 2012-2013 financial year from the All Pakistan Cement Manufacturers Association (APCMA). However domestic cement sales increased by 7.61% to 11.7Mt in the same period. The Pakistan financial year runs from 1 July until 30 June.

A statement from the APCMA revealed that cement plants in the south of the country grew by 7.98% in the local market but posted even higher declines of 16.3% for exports. In the north, where the majority of the country's cement capacity of located, the industry posted a growth of 7.52% in domestic sales whilst exports declined by 1.31%.

The APCMA added that hype created on trade with India has so far not materialised and export in that market was only 0.209Mt during the last six months, a decline of 40.41% and a result well below the expectation of the cement sector. The APCMA spokesman blamed 'stringent non tariff barriers' from India.

During the last six months, the adjacent Afghanistan market remained stable and cement sector exported 2.41Mt. Exports to other destination through sea excluding India also remained stable in comparison with the last six months of 2011-12.

Saudi Arabia: Two of Saudi Arabia's largest cement producers, Yamama and Yanbu, have reported a growth in their profits in 2012.

Yanbu Cement announced a net profit of US$192m for 2012, an increase of 36.1% compared to 2011. The company said that such a performance had been made possible as a result of improved sales and the opening of a fifth production line part way through the year. The company also saw a 32.7% year-on-year increase in its fourth quarter sales to US$54.1m.

Yamama Cement revealed that its full-year net profits for 2012 increased by 11% to US$218m. However in the fourth quarter of the year its profits fell by 9% year-on-year to US$46.4m. The company blamed the lower sale prices achieved during the fourth quarter before the decline was reached.

A recent report by the National Commercial Bank (NCB) said that demand for cement in Saudi Arabia remains strong, with ongoing projects set to sustain growth for several years to come. It forecasted growth in market demand with a rate of 8.2% predicted in 2013 as demand reaches 56Mt. In the longer term NCB predictions expect continued demand growth of 6.3%/yr until 2015.

Yanbu is likely to benefit from any significant growth in demand, as it has three lines with a combined capacity of 1.3Mt/yr currently sitting idle. Predictions that this growth in demand will be disproportionately stronger in the western region could well yield another successful year to come in 2013.

Thailand/Cambodia: Owing to strong demand for cement in the country and the wider Far East region, Siam City Cement (SCCC) has announced plans to re-open one of the two clinker lines that it shut down in 2008, according to local press.

With the re-opening of the clinker factory in October 2013, SCCC's production capacity will rise by at least 1.4Mt/yr, or 10% of its current capacity, according to the company's managing director Philippe Arto.

SCCC shut down the two plants, which had total capacity of 2.25Mt/yr in 2008 because of an increase in production costs and a decline in demand for cement. However, the company has recently seen strong growth in demand. In 2013 it targets year-on-year growth of at least 5%, following an increase in both public and private sector projects.

Meanwhile, the company's board of directors has said that it will consider a plan to invest in Cambodia early in 2013. The company has been working on the plan since 2010. "Our board of directors will make a decision on this plan in 2013. This would be our first investment outside Thailand," said Arto.

If the plan is approved, SCCC will set up a cement plant in Cambodia via a joint venture with a local partner. "We are interested in investing in Cambodia because we have a more-than 40% share in the cement market in the country," said Arto.

SCCC's sales in the first nine months of 2012 climbed by 10.8% to US$653.8m from US$590.5m in the same period of 2011 due to growing demand. However, its net profit dropped by 5.3% to US$94.1m from US$99.3m due to rising energy costs.

The results are in from the European cement majors and the news from the Mediterranean producers is grim. A common phrase found in most of these financial reports was the 'challenging economic environment' in western Europe. Here's what this means.

In Spain, Cemex saw its net sales in its Mediterranean region (consisting mainly of Spain) slump by 17% to Euro1.10bn. Cementos Portland Valderrivas (CPV) posted a loss of Euro83m for the first nine months of 2012, almost 10 times the loss for the same period in 2011. In July 2012 the Spanish cement association Oficement noted that demand had fallen by 60% year-on-year.

In Italy, Italcementi reported a 92% crash in net profit, to Euro17.1m, for the first nine months of 2012, and a drop in revenue of 4%, to Euro3.39bn, for the first nine months of 2012. Buzzi Unicem reported a 21% decline in sales volumes of cement and clinker, and a drop in sales of 15% to Euro430m. Vicat reported that Italian sales across all its business lines were down by 9% for the year.

By contrast, beleaguered Greek producer Titan has finally started to show a (slight) increase in its revenue. It has been able to report a second consecutive quarter where turnover has risen year-on-year. Although Titan's net profit for the same period still plummeted by 96% to Euro2m.

Elsewhere progress of a kind is being made despite the ongoing European slump, mainly due to profitable assets held outside of western Europe.

Lafarge reported that its overall sales were up by 4% to Euro4.39bn in 2012 so far. Yet its income has fallen by 44% to Euro332m and its profits are suffering from its restructuring programme. In western Europe Lafarge noted that cement volumes were down by 11% to 12.5Mt so far in 2012 and that sales were down by 9% to Euro2.43bn.

Holcim reported a 5% increase in overall net sales and a 7% increase in operating profits to Euro1.57bn. In western Europe Holcim's sales volumes were down by 4.6% (like-for-like) to 20.1Mt and sales were down by 6% to Euro3.68bn.

HeidelbergCement reported a 2.5% increase in overall sales but pre-tax profits have fallen by 5% to Euro601m. HeidelbergCement's revenue from its cement business in western and northern Europe was down by 5% to Euro1.3bn. Buzzi Unicem reported overall flat sales at Euro2.15bn but net profit rose by 50% to Euro85m. Despite this Buzzi Unicem reported a drop of 8.5% in Germany.

Vicat reported little change in sales at Euro1.73bn for the year so far. Vicat's financial reporting made it hard to tell how much was lost in Europe but French cement sales were noted as being down by 12%. Cemex's sales volumes were down by 13% in northern Europe, with net sales down by 15% to Euro3.09bn. Italcementi's cement sales volumes in central and western Europe fell by 16.8% to 12.2Mt.

Of the major producers only Lafarge failed to state the obvious in its outlook about western Europe: that sales will continue to decline in 2012 and 2013. If Titan has set the bar for how much more pain the other European producers have yet to face then conditions are likely to get worse. Get ready for even more 'challenges' in 2013.

Japan: The major Japanese cement producer Taiheiyo Cement has released its financial results for the first half of the current fiscal year, which began on 1 April 2012. For the six months to 30 September 2012, the company took a revenue of US$4.43bn up from US$4.35bn in the same period of 2011. However, Taiheiyo went from a making a loss of US$42.3m in the six months to 30 September 2011 to a profit of US$6.7m. It did not provide an operating result for the 2011 period.

Looking forwards, the company has forecast revenues of US$9.2bn for the year ending 31 March 2012, with an operating profit of US$500.4m, a pretax profit of US$381.6m and a net profit of US$125.1m.

South Africa: PPC (Pretoria Portland Cement) has reported that its revenue increased by 9% to US$837m for its financial year ending on 30 September 2012 compared to US$777m in 2011.

The leading South African cement producer reported that its gross profit rose by 9% to US$289m in 2012 compared to US$265m. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 8% to US$265m from US$249m. However, net profit decreased by 2% to US$96.1m from US$98.5m. The group attributed this to an increase in taxes in the year.

"Despite another year in a tough economic environment, characterised by overcapacity in the industry, competitive cement pricing, rising energy costs and strike action in adjacent industries, Team PPC delivered good results by improving efficiencies and increasing normalised earnings by 11%," said outgoing PPC chief executive officer Paul Stuiver.

PPC's overall cement sales volumes fell by 3% following lower sales in Botswana and reduced exports, which were partly offset by growing demand in Gauteng, Port Elizabeth and Zimbabwe. PPC's South African cement sales volumes declined by 1%, mainly due to a subdued final quarter of the 2012 financial year. In its financial report PPC warned against cement imports, which it estimated represent 6% of South Africa's national demand.

In its outlook PPC predicted that labour unrest in the mining industry and a transport strike will reduce growth for the remainder of 2012. For 2013 the company is hoping for South African infrastructure programmes to push demand. Markets in Zimbabwe and Botswana should continue growing.

Greece: The turnover of the Greek cement giant Titan Group for the first nine months of 2012 stood at Euro847m, posting a 1% increase compared to the same period in 2011. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 27% to Euro162.5m.

The group's turnover grew for the second consecutive quarter. Growth was supported by indications of recovery in construction activity in the USA, sustained momentum in the markets of the eastern Mediterranean and an increase in exports out of Greece. Those effects counterbalanced the continued decline of the Greek market and the slowdown in the markets of south east Europe.

The decline in operating results compared to the same period in 2011 was due to deteriorating conditions in European markets and difficulties in passing on production cost increases to customers in most markets. It should also be noted that 2011's results benefited from significant positive extraordinary results.

The weakening of the Euro versus the national currencies of the countries in which Titan is active had a limited Euro3m positive effect on nine month operating results. At constant exchange rates, Titan's turnover would have declined by 3% while its EBITDA would have declined by 28%.

Spain: Cementos Portland Valderrivas (CPV) has posted a loss of Euro83m for the first nine months of 2012, almost 10 times the loss for the same period in 2011. The negative performance was attributed to the weak demand in Spain, which could not be offset by the activities abroad. CPV's turnover totalled Euro505m, of which Euro253.6m was generated in the domestic market and Euro251.4m came from abroad. Cement demand in Spain fell by 34.6% over the period, while in the company's two main foreign markets, the USA and Tunisia, it rose by 9.8% and 11%, respectively.