Displaying items by tag: Results

Mexico: Grupo Cementos de Chihuahua (GCC) recorded earnings before interest, depreciation, taxation and amortisation (EBITDA) of US$308m, up by 6% year-on-year from US$292m. Net sales rose by under 1% to US$939m from US$934m. US cement volumes rose by 5%, excluding oil well cement, and rose by 3% in Mexico. The company said that its cost-and-expense reduction plan saved it US$24.3m throughout the year. During the second quarter of 2020 it signed a long-term agreement to secure wind power to meet 50% of the energy needs of its Rapid City cement plant.

Chief executive officer Enrique Escalante said, “GCC wrapped up 2020 with strong operational and financial results despite the challenges created by the Covid-19 pandemic. These positive results show GCC’s adaptability, resilience and what we can do in challenging times. We experienced a mixed demand for our products in Mexico and the US and, with the exception of oil-well cement, both markets outperformed expectations. GCC generated top-line growth, EBITDA, a strong free cash flow and margin expansion, benefitting from the successful execution of a comprehensive plan to reduce costs and expenses. 2020 was also a year of significant progress in GCC’s efforts to implement sustainability best practices. As a result, we reached our first major milestone by reducing net CO2 emissions by 9% from the 2005 levels.” He added, “Looking ahead, GCC entered 2021 even stronger than last year; even though the situation is still fluid and challenging, we are optimistic and we will operate with the same rigorous approach to continue creating value for all of our stakeholders: our shareholders, customers, employees and the communities where we operate.”

India: The India Cement’s consolidated nine-month net sales for the period which ended on 31 December 2020 were US$416m, down by 24% year-on-year from US$550m, in the corresponding period of 2019. Its sales volumes of cement fell by 29% to 5.9Mt from 8.4Mt. However, its net profit more than doubled to US$21.5m from US$8.3m. The cement producer said that the construction industry started to recover from September 2020 following coronavirus-related lockdowns earlier in the year. Earnings and profits grew in the reporting period in part due to reduced production costs.

India: Aditya Birla subsidiary UltraTech Cement recorded a profit of US$506m in the nine-month period ending on 31 December 2020, up by 47% year-on-year from US$345m in the corresponding period of 2019. Sales fell by 4% to US$4.16bn from US$4.33bn. Third-quarter sales rose by 17% to US$1.68bn from US$1.43bn and third-quarter profit rose by 122% to US$217m from US$97m. The company said that it ended the period having reached 84% production at its newly acquired cement plants of 15Mt/yr total capacity. In the third quarter the board approved capital expenditure investments of US$747m aimed to increase cement production capacity by a further 13Mt/yr.

The company said, “Recovery from the Covid-19-led disruption of the economy has been rapid. This has been fuelled by quicker demand stabilisation, supply side restoration and greater cost efficiencies.” It added, “While UltraTech continues to closely monitor the impact of Covid-19 on its operations, its capital and financial resources remain entirely protected and its liquidity position is adequately covered. With strong rural growth, revival in manufacturing sentiment, buoyancy in the goods and services tax and tax collections, UltraTech expects demand to grow on the back of the government’s push on infrastructure projects. Given its pan-India presence, UltraTech is well-positioned to support the rising demand for cement in the country. As always, UltraTech remains committed to all its business associates and stakeholders.

India: Birla Corporation recorded a net profit of US$52.2m in the nine-month period which ended on 31 December 2020, up by 23% year-on-year from US$42.6m in the corresponding period of 2019. Sales fell by 10% to US$650m from US$724m, while earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 2% to US$141m from US$144m.

China: Sinoma (CNBM) International Engineering’s value of new projects grew by 9% year-on-year to US$5.3bn in 2020. Most of these projects came from growth in its construction business segment. However, new project value from its equipment manufacturing business fell by 5% to US$629m. By region, domestic new project value decreased by 3% to US$2.1bn but overseas new project value rose by 19% to US$3.2bn. The engineering company and member of CNBM group also reported that its US$480m project to build a 5000t/day clinker production line in Zambia for Central African Cement remains in the financing stage. The project was originally announced in late 2018.

Oman: Raysut Cement’s revenue grew by 7% year-on-year to US$235m in 2020 from US$219m in 2019. Its profit after tax increased to US$36.5m from US$5.88m.

China: Huaxin Cement has forecast a 9 -14% year-on-year fall in full-year net profit in 2020, of up to US$140m. It said that it recorded a net profit attributable to shareholders after deducting non-recurring gains and losses of around US$980m in 2019.

The company said, “The main reason for 2020 performance decline is the hit of Covid-19 in the first half of this year and vast flood disaster along Yangtze River in July 2020. The sales volume of main products were hugely affected and the price fell to some extent, leading to the reduction in the operating revenue.”

Jamaica: Caribbean Cement says that it produced a record 0.94Mt of cement in 2020 due to market demand. This has been attributed to capital investment, positive government policies in response to the coronavirus pandemic, the company’s own reaction and the ‘expertise’ of its employees. It said it did not experience an overall loss of productive time due to closures related to the public health situation. Heavy rainfall, inconsistent power supplies and disruptions to mining in the third quarter of 2020 prevented the cement producer from surpassing 1Mt for the year.

“The market responded opposite to what might have been expected given the pandemic. Instead of slowing down, construction grew, and we kept in step with our customers by meeting their demand consistently. We will continue to ramp up production as the market grows,” said Yago Castro, General Manager of Caribbean Cement. He added, “The Government of Jamaica assessed the situation well and allowed critical sectors to continue operating once certain protocols were followed. Prioritising health, while keeping economic goals in mind, have mitigated against the negative impact on our sector.”

Kazakhstan: Steppe Cement increased its full-year sales by 1% year-on-year to US$73m in 2020 from US$72m in 2019. Its cement sales fell by 4% to 1.6Mt from 1.7Mt, and its exports rose by 30% to 0.2Mt. Domestic demand rose by 6% to 9.4Mt from 8.9Mt. Steppe Cement’s market share fell to 15%.

Kazakhstan’s overall cement exports rose by 25% in 2020 to 2.0Mt from 1.6Mt. Imports fell by 14% to 0.6Mt from 0.7Mt.

Rwanda: PPC subsidiary Cimerwa’s sales grew by 1% year-on-year in the 2020 financial year, in which it recorded earnings before interest, depreciation, taxation and amortisation (EBITDA) of US$16.7m. The producer says that it recovered strongly from a 40-day shutdown of cement production due to a national coronavirus lockdown that started on 22 March 2020, with cement production of 55,000t in July 2020. It also diversified its product range during the period with the launch of its new Sure Range cements.

Chief executive officer (CEO) Albert Sige said, “These results demonstrate Cimerwa’s strong foundation, resilience and great potential. In response to the exceptional situation of the Covid-19 pandemic, the team stepped up to the challenge by putting in place measures to ensure business continuity and protect performance. As the market opened up, we were more than ready to continue supplying our customers and stay on the course of Strengthening Rwanda. We undertook various initiatives that will have long-term positive impact on the business. This includes cost savings initiatives, strengthening the organisation and applying innovation to face new challenges. Cimerwa will emerge from this situation even stronger than before.”