Displaying items by tag: Results

Saudi Arabia: Saudi Cement Co has reported a 39% rise in its third quarter net profit. The rise was attributed to increased efficiency and higher local demand. The firm made a net profit of USD52m in the three months ending 30 September 2011, compared with USD37m in the same period in 2010. The company said it had raised efficiency by using new production lines and that local demand had grown. It attributed the fall in profits from the second quarter to a seasonal decline in sales. The company posted a second quarter net profit of USD57m.

Ireland: CRH plc, the Dublin-based international building materials group, has reported a 280% increase in pre-tax profit to Euro95m for the six months to 30 June 2011. The first half of 2010 saw a pre-tax profit of just Euro25m.

Turnover in the first half of 2011 was up by 7% to Euro8.1bn compared to the same period of 2010 when it was Euro7.6bn. Earnings before interest, tax, depreciation and amortisation rose by 10% to Euro574m from Euro520m in 2010. CRH said the increase in profit was largely driven by its Products and Distribution operations in Europe and the Americas.

The group's net debt at 30 June 2011 was down by 17% year-on-year to Euro3.9bn, compared with Euro4.7bn at 30 June 2010. Cash spent in the first six months amounted to Euro163m, while proceeds from disposals amounted to Euro392m.

Commenting on the results, CRH chief executive Myles Lee said that the improved results demonstrated the benefits of the group's recent reorganisation and restructuring, which has been carried out in response to 'exceptionally difficult markets' in recent years.

Looking forward, Lee said that CRH would continue to focus on, "Operational and commercial excellence, delivering the price increases necessary to recover higher input costs in our businesses and on delivering a year of progress for CRH in 2011." He added that this would be difficult given the recent turbulence seen in the global stock markets.

Malaysia: Lafarge Malayan Cement Bhd's pre-tax profit for the quarter ending 30 June 2011 increased to USD34.86m from USD30.6m in the corresponding quarter of 2010. The company attributed the improved result mainly to higher revenue and share of better results from its associated company but added that this was partly offset by the higher cost of fuel and raw materials. A 10% increase in electricity tariff, which came in on 1 June 2011, further added to the cost of production. The company's revenue for the quarter rose to USD223.5m from USD198m in the 2010 quarter.

For the first six months of 2010, its pre-tax profit rose to USD57.9m from USD49.7m in 2010. Its six-month revenue rose to USD425.3m from USD381.8m. The company also attributed this 11% year-on-year increase in first half revenue to higher domestic sales volume and better selling prices.

India: Cement consumption in India fell for the first time in nearly 20 years in the three months to 30 June 2011, with a political impasse in large consumer states holding up infrastructure and realty projects. Demand fell by 0.68% during the period compared with the corresponding period in 2010 but demand changes were different depending on location. In Andhra Pradesh, demand contracted by 21% and in Karnataka it was down by 8.04%, according to data from Cement Manufacturers' Association (CMA).

Elsewhere, demand was down by 2% in June 2011 in Kerala and in Tamil Nadu, it was down by 1.9%. In comparison Gujarat saw cement demand grow by 4.9%, but growth was less strong than the same period of 2010, when 15% cement demand growth was seen.

The demand for cement is not assisted by problems that are expected to hinder government's proposed USD107bn investment in state road development during the 12th Plan period. The government has cited a lack of capacity in the private sector to make large investments, political sensitivity surrounding road-tolling, land acquisition disputes (which have caused a slow-down and resentment from locals at the site of the Formula 1 circuit site in Greater Noida, Uttar Pradesh) and a shortage of trained manpower as key problem-areas that may hamper the execution of the programme, due to start in 2012.

It is estimated that because of these problems, around 80% of the cost of the proposed investment will have to be met by public funds. The plan includes the construction of over 30,000km of new dual-carriageways, 5000km of four-lane highways and another 41,500km of single-track roads that are due for restructuring. The plan stipulates that the roads will be finished with either cement-based finishes or asphalt.

Japan: Taiheiyo Cement Corp has announced a net loss of USD67.7m from sales of USD2.14bn in the three months to 30 June 2011. The company's net loss was less than half the loss that it suffered in the same quarter of the previous fiscal year, which was USD140.6m. The closure of three domestic factories in the previous quarter and smaller payrolls boosted its bottom line.

While sales at the firm's mainstay cement operations were nearly unchanged from 2010, its operating loss totaled USD15.6m, far better than the USD49.5m operating loss logged in the same quarter of the previous fiscal year.

Cement demand in the Tohoku region fell in the wake of the massive earthquake that hit north east Japan in March 2011, but demand from construction of condominiums and commercial facilities rose in the Tokyo metropolitan area in particular, leading to the rise in sales.

Taiheiyo Cement expects its net profit through to the end of the current fiscal year (ending 31 March 2012) to jump by 150% to USD141.3m. The firm has also forecast that sales will drop by 2% to USD9.15bn and that operating profit will surge by 64% to USD351.5m for the full year.

China: China's cement industry has maintained its rapid growth in production, sales and profits so far in 2011, according to the latest data released by the Ministry of Industry and Information Technology (MIIT).

According to MIIT statistics China produced 198Mt of cement in June 2011, an increase of 19.9% over June 2010. This represents record highs for both monthly cement output and monthly growth rate. In the first half of 2011, China's cement production increased by 19.6% year-on-year to 950Mt.

Cement and clinker exports stood at 5.6Mt during the same period with an export value of USD310m for June 2011, down 35.5% and 14.9% year-on-year respectively.

According to the statistics provided the cement industry witnessed sales of USD50.4bn in the first five months this year with profits of USD5.4bn, up by 48% and an extraordinary 170% year-on-year respectively. Chinese cement production statistics are viewed with skepticism by some in the cement industry, who believe that they may be inflated.

Oman: Raysut Cement's Chairman, Alawi Ali Muqaibal, has announced that the company's pre-tax profit declined by 44% in the second half of 2011, falling to USD19.6m from the USD35m that was earnt in the same period of 2010. For the first six months of 2011 Raysut's production cement production was 1.62Mt and its clinker production was 1.71Mt.

Muqaibal added that during the period under review, total sales reached USD77.6m, a decline of 17% from the USD93m taken in 2010. Despite competition in the UAE, the company's subsidiary, Pioneer Cement, earned USD3m.

Greece: Titan Group has recorded a poor set of financial results for the second quarter and first half of 2011, in line with independent forecasts. Turnover in the first six months of 2011 was down by 18.2% year-on-year to Euro557m, earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 12.4% to Euro141.4m and the group's net profit was Euro23.4m, down a massive 65.7% on 2010.

The weakening of the Egyptian pound and Turkish Lira, as well as the US Dollar versus the Euro, led to negative foreign exchange effects. At stable exchange rates, the decline in Group turnover would have stood at 14.1% and the decline in EBITDA would have been 6.6%. The group's results were also negatively impacted by increases in the price of fuels.

The deterioration in operating results was mainly attributed to the sharp decline in construction activity in Greece (reaching a nearly 40-year low), in conjunction with the deep and persisting depression of construction activity in the USA. In contrast, Group's activities in developing countries, particularly in the Eastern Mediterranean region, increased their contribution to the group's operating results.

In Greece, the combination of growing uncertainty regarding employment and attendant future household income, coupled with the decline in new loans issuance on the part of banks and the existing surplus housing stock, resulted in a sharp decline in demand for building materials. The repeated cutbacks in public investment programmes and the state's inability to cover its arrears, have brought public works to a standstill. In Greece Titan's EBITDA consequently declined by 49.4% compared to the first six months of 2010 to stand at Euro26.9m.

In the USA, construction activity continues to be faced with a very poor set of circumstances. Uncertainty regarding the timing of the economy's turnaround in conjunction with the country's debt crisis, the containment of public expenditure and the high levels of unemployment are preventing the recovery of the construction sector. Activity in the south east states, where Titan is primarily active, remains particularly stagnant at the very low levels witnessed in recent years. EBITDA in the USA recorded a loss of Euro4.8m in the first six months of 2011.

In south east Europe, indications emerged that the recovery in the region's economies is gradually beginning to have a positive impact on construction activity. Within the context of its stated goal of reducing its carbon footprint, the group completed the installation of a new unit in Bulgaria within the plant's perimeter for the pre-processing and recycling of municipal waste, which is expected to come on stream in the third quarter of 2011. EBITDA in the region of south east Europe recorded marginal growth, reaching Euro42.7m.

The social upheaval in Egypt is gradually affecting the country's growth rates and subsequently also pulling down the construction sector. In contrast, the growth of the Turkish economy has led to higher demand in the construction sector as well. EBITDA in the eastern Mediterranean region grew by 19.5% to Euro76.5m.

The prospects for Greece in the second half of 2011 remain very poor. Cement demand for the full year is forecast to stand at just 35% of 2006-7 levels. Support from the EU, which aims to kick-start investments and public works, is not expected to lead to a meaningful improvement in the coming year. In line with poor expectations in Greece and Titan's other major areas of interest, the group has said that it will continue to focus its efforts on the generation of free cash flow aiming at improving its financial flexibility.

Europe: Several European cement producers have announced financial results for the second quarter and the first half of 2011. On 28 July 2011 Lafarge, the world's largest cement producer, announced that its profit fell by 16%, in part due to higher material costs (Read full story here). Other European producers have seen a mixed bag of results for the quarter, with Ciments Français and HeidelbergCement both reporting improvements over the year. Unlike the multinationals however, Cementos Molins and Titan, which both have significant interests in markets that are currently depressed, have had bad quarters.

Ciments Français took a consolidated revenue of Euro2.04bn in the first six months of 2011, down by 1.8% on the year. The group's recurring earnings before interest, tax, depreciation and amortisation (EBITDA) were down more significantly, by 12.8%, at Euro386.4m and its net profit was Euro232.2m. This compares favourably with the Euro166.9m made in the six months to 30 June 2010. The group's net debt was down by Euro218.2m to Euro1.19bn. Group sales volumes in the first six months of 2011 remained relatively stable (-0.7%) for cement and clinker at 21.9Mt. Sales volumes increased in India (+16.3%), France and Belgium (+10.8%), Thailand (+6.6%) and Morocco (+6.0%). Volumes dropped in Greece (-26.1%), Bulgaria (-25.0%) and Egypt (-14.1%). Volumes remained fairly steady in the group's other markets.

HeidelbergCement (HC) announced that its net profit grew to Euro208m in the second quarter, up by 25% on the same period of 2010. Revenue rose only slightly (3%) on the year to Euro3.4bn, burdened by negative exchange rate effects. The group's operating profit dropped by more than 10% to Euro441m, which the company attributes to rising energy costs that have not been offset by the implemented price increases. "Despite a positive development of revenue and results, we are not satisfied with the second quarter," said HC's CEO Bernd Scheifele, who added that the group's FOX 2013 fiscal savings programme had so far generated savings of some Euro134m. Its turnover for the second quarter was Euro3.39bn.

The attributable profit of the Spanish cement company Cementos Molins for the first half of 2011 went down by 57.8% year-on-year to Euro11.64m. Its turnover inched up by 0.6% to Euro400.23m. The 15% increase in the company's international operations offset a massive 24.7% fall that it registered in the domestic market. Its EBITDA amounted to Euro76.19m between January and June 2011, an annual decline of 16.2%.

Meanwhile, analysts are predicting an even worse time for Greece's Titan when it announces its results on 2 August. They expect its profit to drop by a staggering 64% amid the ongoing weakness in the Greek and US markets where Titan has a significant majority of its assets.

France: Lafarge has released its financial results for the second quarter and first half of 2011 which show strong cement volume growth. The group's sales were stable in the second quarter of 2011 at Euro4.42bn but current operating income was down by 16% on the year to Euro702m. For the first half of 2011, sales were up by 3% to Euro8.0bn but current operating income was down by 14% to Euro926m.

Sales increased on a like for like basis in all product lines for both the quarter and first half of 2011, thanks to strong volume growth driven by continued strength in emerging markets. Cement prices moved progressively higher from the fourth quarter of 2010 to the second quarter 2011, but were slightly down compared to the first-half of 2010.

Lafarge achieved Euro50m of structural cost savings in the quarter and has achieved Euro100m of savings in 2011 to date and has agreed to sell its Australian, South American and European gypsum wallboard assets.

Bruno Lafont, Chairman and CEO of Lafarge, said, "While I am encouraged by the return to cement volume growth for the last several quarters, the impact of high inflation and a slow recovery in mature markets has weighed on the cement sector. The group is focused on its priorities, including price actions in response to a high-cost environment and strategic moves with its asset portfolio, to support profitability and reduce debt by at least Euro2bn in 2011. The business will continue to benefit from volume growth thanks to our continued development in emerging markets."

Lafarge expects to see cement demand continuing to move higher and estimates market growth of 2-5% in 2011 compared to 2010. Emerging markets continue to be the main driver of demand and Lafarge benefits from its well balanced geographic spread of high quality assets.

Cement sales were stable in the second quarter (up by 3% like for like) and up 3% in the first-half (up by 3% like for like), reflecting volume improvements in emerging markets and new capacities acquired in Brazil offset by the negative impact of foreign exchange.

Volumes increased by 9% in the quarter (up by 6% like for like) and by 8% in the first-half (up by 5% like for like), with growth driven by the Middle East, Africa and other emerging markets. Despite the Group's cost reduction program, higher cost inflation and foreign exchange put pressure on results and margins.