Displaying items by tag: Results
Siam City to fire up closed kiln
12 December 2012Thailand/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.
Grim and grimmer: European cement production so far in 2012
14 November 2012The 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.
Taiheiyo returns to profit in first half
14 November 2012Japan: 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.
PPC reports 9% revenue boost in 2012
14 November 2012South 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.
Titan battling Greek market as foreign markets pick up
14 November 2012Greece: 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%.
CPV ramps up loss 10-fold
14 November 2012Spain: 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.
Buzzi profit bucks trend with increase
14 November 2012Italy: Buzzi Unicem has posted a net profit of Euro85m for the first nine months of 2012, a 40.4% increase year-on-year. Buzzi's net sales grew by 1.7% to Euro2.15bn and earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 11.7% to Euro368.7m. Its net debt fell to Euro1.10bn at the end of June 2012 from Euro1.14bn at the end of 2011.
On the basis of the results in the year so far, the company has raised its EBITDA guidance for 2012 to Euro450m.
FLSmidth revenue up 23% so far in 2012
13 November 2012Denmark: The Danish cement plant manufacturer FLSmidth & Co. A/S has continued strong growth in both revenue and order intake over the nine month period to 30 September 2012. The company's full year revenue guidance has been maintained, based on expectations of strong revenue generation in the fourth quarter.
In the third quarter of 2012 FLSmidth's order intake increased by 11% to Euro1.07bn from Euro962m in the third quarter of 2011. Revenue increased by 23% year-on-year to Euro847m from Euro688m and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 6% to Euro95.1m from Euro89.7m. The profit for the period decreased by 6% to Euro50.6m from Euro54.1m in the third quarter of 2011.
Over the nine months to 30 September 2012 FLSmidth's order intake increased by 19% year-on-year to Euro2.90bn from Euro2.44bn and its order backlog increased by 13% to Euro4.18bn. Revenue for the nine months increased by 23% to Euro2.25bn. Nine month EBITDA was up by 16% to Euro204m. Profit for the period decreased by 3% to Euro113m.
FLSmidth has maintained its full year revenue guidance for continuing activities of Euro3.35-3.48bn. Cash flow from investing activities (exclusive of acquisitions and their subsequent capital expenditure needs) is expected to amount to Euro102.9m in 2012 due to investments in service supercentres and expansion of manufacturing in India and China.
Raysut Cement profit rises 62% to US$49.4m so far in 2012
12 November 2012Oman: Raysut Cement has reported that its profit before tax rose by 62% to US$49.4m for the first nine months of 2012. This compares to US$30.7m for the same period in 2011. Oman's biggest cement producer has attributed the increase to higher sales volumes of cement and better price 'realisation'.
Raysut Cement's revenue for the first nine months of 2012 rose by 12% to US$183m, compared to US$163m in 2011. The group's subsidiary Pioneer Cement reported a profit of US$9.79m in 2012 compared to US$3.87m in 2011.
The group produced 2.83Mt of cement in the first nine months of 2012, an increase of 21% year-on-year compared to 2.33Mt in 2011. It produced 2.63Mt of clinker, an increase of 4% year-on-year compared to 2.53Mt in 2011. The group sold 2.84Mt of cement during the first nine months of 2012, compared to 2.40Mt in 2011.
In its forecast Raysut predicted that the construction industry in Oman would grow to US$5bn by 2016 at an average rate of 6%. It supported this assertion with the news that a number of formerly suspended programmes in the United Arab Emirates (UAE) have been reinstated. Yet the group added that cement supplies in Oman remain under 'significant' pressure from imports from UAE. It is estimated that UAE has an overcapacity of cement of around 65%. Raysut also expects that demand in Yemen and east Africa will aid the company.
Lafarge nine months sales up by 4% but profit down
09 November 2012France: Lafarge has reported that its sales have risen by 4% to Euro4.39bn in the first nine months of 2012, compared to Euro4.21bn in the same period of 2011. However, the French multinational cement producer's profits are still suffering due to restructuring charges and an impairment in the second quarter. So far in 2012 Lafarge's net income has fallen by 44% to Euro332m from Euro596m. For the third quarter of 2012 net income fell by 5% to Euro319m from Euro336m.
Lafarge's earnings before interest, taxes, depreciation and amortisation (EBITDA) for its cement business rose by 5% for the first nine months of 2012 to Euro2.22bn from Euro2.08bn in 2011. Cement sales increased by 3% to Euro7.90bn from Euro7.49bn. Cement volumes declined by 2% to 106Mt from 109Mt. For the third quarter of 2012 cement volumes declined by 4% year-on-year to 36.6Mt from 38.2Mt in 2011. Lafarge attributed this to the construction slowdown in Europe, unfavourable third quarter weather conditions in the central United States and the sale of some of its US assets to Eagle Materials in October 2012.
"Our actions to generate sales growth and cash, reduce debt and improve returns led to a fourth consecutive quarter of positive trends even in a lower growth volume environment. These actions will accelerate as we implement Euro550m of innovation and cost savings initiatives in 2013 of our four year, Euro1.75bn additional EBITDA plan," said Bruno Lafont, chairman and chief executive officer of Lafarge.
By region cement volumes declined by 10% in north America to 4.1Mt year-on-year in the third quarter of 2012 from 4.5Mt. Western Europe saw a decline of 12% in the third quarter to Euro4.2Mt from Euro4.9Mt. Lafarge's central and eastern Europe region saw a drop of 8% to 4.5Mt from 4.7Mt. In Poland the group blamed a slowdown on the aftermath of the European Football Championship in June 2012. In Russia a production 'limitation' at a plant near Moscow caused problems. In the 'Middle East and Africa' region volumes fell by 4% to 10.8Mt from 11.4Mt.
In Latin America cement volumes rose by 5% to 2.4Mt from 2.3Mt. Cement sales in the region were led by a 12% boost in Brazil. In Asia volumes rose by 3% to 10.6Mt from 104Mt. Lafarge singled out a 25% increases in domestic cement sales in India, 11% in the Philippines and 14% in Indonesia. Despite increases in volumes in China, Lafarge noted that cement sales were impacted by slower construction growth and increased competition.
In its outlook Lafarge concluded that it expects to see cement demand growing from 1-4% in 2012 driven by emerging markets. The group will hold its target of reducing net debt to below Euro10bn as soon as possible in 2013.