Displaying items by tag: Results
Sumitomo Osaka Cement profits rise sharply in Q1 2013
06 August 2013Japan: Sumitomo Osaka Cement has reported that its operating profit rose by 77% to US$38.5m in the first quarter of the 2012 - 2013 Japanese financial year that ended on 30 June 2013. In the quarter ending on 31 March 2012 it was US$21.8m. The Japanese cement producer noted that public-sector demand for cement was increasing due to reconstruction following the March 2011 earthquake and tsunami disaster and that private-sector demand had also increased in urban areas.
The company's sales revenue rose slightly in the first quarter of the 2012 – 2013 financial year to US$547m from US$539m. Net profit increased by 151% to US$25.8m from US$10.3m. Sales from the company's cement business in the quarter were US$440, a slight increase year-on-year.
Italy: Buzzi Unicem made a net loss of Euro26.6m in the first half of 2013, 44% higher than the Euro18.5m loss seen in the first half of 2012. It recorded a 25% fall in first-half core earnings for 2013, which it said were hit by lower sales volumes.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months fell to Euro150.7m from a restated Euro200.5m in the first half of 2012. Buzzi's net sales fell by 5.7% to Euro1.27bn. Buzzi's cement sales for the first half of 2013 were 12.3Mt, representing a 5.8% decrease compared to the first half of 2012 when it sold 13.1Mt.
The company said that the results for the first half of 2013 were below its own expectations and were caused by the extremely difficult economic situation in Italy, flat activity in Central Europe, the lack of clear signs of recovery in Eastern Europe and an unforeseen slowdown in Mexico.
Buzzi also said that it believed that there were grounds for a sizeable improvement of results in the second half of 2013, thanks especially to a volume recovery in Central Europe, acceleration of sales and prices in the United States and the attainment of an operating profitability closer to that of the previous year in Eastern Europe.
Based on the above considerations, for the full financial year 2013, Buzzi expects to report a recurring EBITDA that is 5 - 10% lower than that of 2012.
Holcim Indonesia sells less amid temporary overcapacity
02 August 2013Indonesia: Holcim Indonesia has reported that market oversupply has caused lower cement sales in the first half of 2013 than in the first half of 2012. Sales volumes dropped by 1.3% to 4Mt between January 2013 and June 2013.
"The company had foreseen the contraction after a similar dip in the first quarter, the first time after eight consecutive quarters of growth," said Holcim Indonesia's president director Eamon Ginley.
In the first quarter, Holcim Indonesia reported that its cement sales volume had declined by 1.6% to around 2Mt. Ginley said the condition was temporary as demand would continue to increase over the medium to long terms, citing government and private sector investments in infrastructure and housing.
Half-time progress report 2013
31 July 2013Half-year results from some of the major global cement producers are starting to present a detour from the usual European doom-and-gloom and optimism for the BRIC economies (Brazil, Russia, India, China and South Africa) of recent years.
Yes, Europe is dragging balance sheets down (particularly certain countries), but some indicators are starting to stabilise following a good second quarter. Very possibly the cost cutting programmes of the multinational cement producers are starting to kick in. Alternatively, perhaps these cement markets have finally bottomed out.
Lafarge has suffered a bad six months with cement sales down by 6%. However, its sales decline in Western Europe has slowed down with the worst news now coming from Central & Eastern Europe. Cemex has reported a better second quarter in 2013 with overall sales up by 4%. It too can show softened declines in its European territories. Italcementi and its subsidiary Ciments Français both saw revenues falling in the half year but either at a reduced rate or with a slowdown in the rate that earnings before interest, taxes, depreciation and amortisation (EBITDA) are declining.
Only HeidelbergCement's results have resisted any direct signs of an improvement in Europe. Overall revenue has remained stable for the half year with its profit up year-on-year. In Europe its revenue reduction has worsened to 4.7% for the half year. However it did observe a 'significant' improvement in cement sales in the UK.
Meanwhile, one of the cement industry's more reliable markets in recent years – India – is showing signs for concern.
As our news roundup this week reports, the country's largest standalone cement producer, UltraTech, had its profits drop year-on-year by 13.5% to US$111m for the most recent quarter and its net sales actually dropped slightly. Holcim has also been active in India with the announcement that it is simplifying its corporate structure to cut costs. In addition Lafarge reported that its market growth in India was 'subdued', considerably down from the 24% growth in cement sales seen in that country in the first half of 2012.
The news from UltraTech and Lafarge suggest that the rate of growth of the Indian cement industry is slowing. The unanswered question from Holcim's activity in India is whether they are doing it to counteract European losses or to counteract a loss of profitability in India.
Holcim's half-year results will make interesting reading when they are released in mid-August 2013 and may help to decide whether the worst is over in Europe.
Germany: HeidelbergCement has announced improved operating results in the second quarter of 2013 despite claims that poor weather conditions in Europe and North America had hampered its performance. The group's revenue was stable at Euro3.8bn for the three months to 30 June 2013 and at Euro6.56bn for the first six months of 2013.
HeidelbergCement's net profit for the second quarter of 2013 was Euro469m, a 92% increase year-on-year from Euro245m in the second quarter of 2012. Over the first half of 2013, its profit rose by Euro285m from just Euro86m in the first half of 2012.
"HeidelbergCement has successfully continued the positive earnings development in the second quarter despite challenging conditions," said Dr Bernd Scheifele, chairman of the managing board. "The measures that we introduced to improve margins are showing results. We were able to implement price increases in our principal markets and our efficiency improvement programmes are progressing according to plan."
The group saw regional variation in its cement sales during the period under review. While construction activity in Europe and parts of North America was hindered due to heavy rain and flooding in some areas, HeidelbergCement's cement deliveries benefited from the sustained increase in demand in its Asian and African markets as well as from the continued economic recovery in other parts of North America, especially in the southern US.
During the second quarter, the group's cement and clinker sales volumes dropped slightly by 0.8% to 24.3Mt from 24.5Mt in 2012. The Asia-Pacific group area experienced the strongest growth in sales volumes, followed by North America and Africa-Mediterranean Basin. Cement sales volumes in the Western and Northern Europe group area remained broadly stable. Deliveries in the UK were more than 10% above the values of 2012 due to the emerging recovery in private residential construction. Sales volumes in Germany and in the bordering countries of eastern Europe were adversely affected by heavy rainfall and flooding.
The Eastern Europe-Central Asia group area recorded a decline in sales volumes of more than 10%. Poland, Romania and the Czech Republic were the most severely affected. In addition, the harsh austerity policies of these countries had a negative effect on public infrastructure construction. In the first half of 2013 cement and clinker sales volumes decreased slightly by 0.8% to 42.4Mt from 42.7Mt in 2012.
Looking ahead, in North America, HeidelbergCement still expects ongoing economic recovery and consequently a further increase in demand for building materials, especially from residential construction and the raw materials industry. A three-layered economic development is anticipated in Europe and central Asia. It says that the markets in Germany, northern Europe and the UK should continue to develop positively and expects those in central Asia to remain stable. In Benelux and eastern Europe a continuing weak development of the economy and demand for building materials is anticipated. In Asia and Africa, the group still expects sustained positive demand.
Italy: Italcementi has reported that its revenue fell by 6.2% to Euro2.16bn for the first half of 2013 from Euro2.30bn in the same period in 2012. The Italian-based cement producer commented that, despite the decrease in sales volumes, its revenue reduction was smaller (3.6%) in the second quarter of 2013.
"Our programme to contain fixed costs together with close control of variable costs enabled us to lower our breakeven point, slightly ahead of our targets, despite continuing difficulties in market conditions, especially in Italy," said Italcementi group chief operating officer Giovanni Ferrario.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 10.6% to Euro299m from Euro334m. The group posted a loss for the period of Euro43.3m compared with a profit of Euro1.3m in the first half of 2012, when gains of Euro8.6m were reported on the sale of its subsidiaries Afyon and Fuping. Net debt for the period was broadly unchanged for the period at Euro2bn.
Overall cement sales fell by 7.1% to 21.8Mt. By region, cement sales fell by 12.4% to 7.2Mt in Central Western Europe and by 11.7% to 6.9Mt in Emerging Europe, North Africa and Middle East. Cement sales rose by 1% to 2Mt in North America and by 5.3% in Asia. In the cement business, for the second quarter the group reported a significant reduction in the decline in Europe and Morocco, positive performance in North America and stability in sales in Asia. Sales volumes in Egypt were affected by difficulties in fuel procurement. A particular poor performance in Italy was singled out.
In its outlook, Italcementi speculated that its results in the second half of 2013 should be in line with the second half of 2012 due to market improvements in selected countries and the impact of cost cutting exercises, particularly in Italy and Spain. However, it warned that full-year profitability would be hit by the poor first quarter of 2013.
France: Ciments Français' earnings before interest, taxes, depreciation and amortisation (EBITDA) have slowed their reduction year-on-year to 5.2% in the first half of 2013. The Italcementi subsidiary reported that sales recovered in the second quarter of 2013.
In the first half of 2012 EBITDA fell by 17.1% year-on-year. In the first half of 2013 EBITDA fell year-on-year by 5.2% to Euro305.4m from Euro323.6m from the same period in 2012. Revenue for the half year decreased by 4.2% to Euro1.83bn from Euro1.91bn. By quarter, revenue fell by 7.3% in the first quarter of 2013 but only fell by 1.6% in the second quarter of 2013.
Cement sales for the first half of 2013 fell by 4.8% to 19.2Mt. By region, cement sales fell by 5.8% to 4.5Mt in Western Europe and by 11.7% in Emerging Europe, North Arica and Middle East. Sales rose by 1% in North America and by 5.3% in Asia. By country, cement sales were particularly down in Egypt, due to fuel supply issues, and in Morocco.
In its outlook Ciments Français expected that its full year results would be comparable to those in 2012. However, market trends in territories such as Egypt present significant variables in making forecasts.
Spain: Cementos Molins has reported a drop of 58% in its profit for the first half of 2013 to Euro8.3m. The Spanish cement producer announced a loss of Euro22.4m which was offset by a Euro30.7m net profit registered abroad. It reported sales of Euro416m. The company's net debt was reduced year-on-year by Euro7m to Euro309m.
UltraTech Q1 profit sinks by 13.5% to US$111m
31 July 2013India: UltraTech Cement has reported a 13.5% drop in profit after tax to US$111m for the quarter ending on 30 June 2013. The cement producer, part of the Aditya Birla Group, offered no explanation for the decrease in profit. It did state that the quarter saw logistic and raw materials costs rise, linked to rises in railway freight and diesel prices.
The company's net sales for the quarter fell by 2% year-on-year to US$820m from US$837m. Profit before interest, depreciation and tax fell by 10% to US$205m from US$228m. Combined domestic cement and clinker sales were 9.94Mt. In its outlook UltraTech expected business to be challenging depending on housing demand and infrastructure spending.
In its development plans UltraTech reported that it has commissioned its 3.3Mt clinker plant in Karnataka. US$350m has been set aside to set up grinding plants, taking the company current capital expenditure total to US$2.25bn. Cement production capacity is planned to rise by 10Mt/yr by 2015 bringing the company's total capacity to 64.45Mt/yr.
Dangote profit up by 52% in first half
29 July 2013Nigeria: Dangote Cement has announced that its half-year pretax profit rose by 52.1% to US$669m in 2013 compared with US$436m in the first half of 2012. Dangote said that a Nigerian building boom was behind the rise in profit.
Turnover at Nigeria's largest listed company rose to US$1.23bn during the six months to 30 June 2013, up by 28.5% from US$905m in 2012. The company announced that it expected a pretax profit of US$308m in the third quarter of 2013 from sales of US$603m.
Meanwhile, Reuters has reported that Dangote has announced plans to increase its cement capacity in Nigeria to 29Mt/yr by 2015 from 19.5Mt/yr at present. It added that it wants to expand its capacity to 55Mt/yr across Africa by 2016.
Dangote also reported that cement demand in Nigeria had risen to 11Mt/yr during the first half of 2013, a 14% year-on-year rise compared to the same period of 2012. This, the company said, was caused by a surge in government infrastructure projects.