Displaying items by tag: Spain

Spain: The Spanish cement producer Cementos Portland Valderrivas (CPV) has announced that it expects to swing to profit in 2013 thanks to its 'Plan NewVal' launched recently. Plan NewVal 2012-2013 is focused on cost reduction and securing new sources of revenue.

CPV's new chairman and CEO, Juan Bejar, said that CPV's earnings before interest, tax, depreciation and amortisation (EBITDA) are now expected to reach Euro200m in 2013.

Speaking more widely, Bejar noted that cement consumption in Spain came to just 20.4Mt in 2011, down a massive 64% from the 2007 high. Worse is expected in 2012, when consumption is expected to fall another 20% to just 16Mt.

Spain/US: The head of Fomento de Construcciones y Contratas SA (FCC), Baldomero Falcones Jaquotot, has said that a planned sale of US-based Giant Cement Holding Inc. has been delayed while the Spanish construction giant deals with the debt refinancing of Cementos Portland Valderrivas (CPV). FCC owns nearly 70% of CPV, which in turn owns Giant. FCC had previously planned to sell Giant by the end of the first quarter of 2012. Falcones added there has been one bidder for the US cement unit. FCC spokesman Jose Manuel Velasco Guardado said CPV is keeping, 'all options open for Giant.'

FCC is currently focusing on CPV's efforts to renegotiate Euro1.5bn in gross debt. Around 46% of the debt is due to be repaid in 2012 and 48% is due in 2013. Portland is also crafting a new business plan that may include plant closures in Spain. Falcones said that CPV was in 'a good situation' as it discusses a new debt repayment timeline with its banks, while looking to 'increase its cash situation.'

With Spain's economy in poor shape, FCC is trying to increase the portion of its revenues originating from overseas to more than 65% in three years time from 52% in 2011. Falcones said FCC might be inclined to make overseas acquisitions sooner than later in order to take advantage of the Euro's relative strength and is also eyeing growth opportunities in Latin America, Asia, the Middle East and central and eastern Europe.

In Spain, FCC is owed more than Euro2bn from local and regional governments for past services rendered. Falcones said that he expects most of it to be paid in May and June 2012 after the central government set up a new credit line to help cash-strapped regions and municipalities to pay off their debts.

The Spanish government is benefiting from much improved financing conditions after local banks tapped the European Central Bank's Long-Term Refinancing Operations to purchase government debt.Falcones is confident that the full amount will be paid. "If I get Euro1.5-2.0bn, I will be very happy," he said. "It doesn't mean we won't get the rest. That will take more time."

Spain: Fomento de Construcciones y Contratas (FCC) closed 2011 with an attributable net profit of Euro108.2m, down 64.1% year-on-year. The slump was explained by the poor performance of FCC's cement producer Cementos Portland Valderrivas. Total sales went down by 1.3% to Euro11.76bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 8.3% to Euro1.25bn. Net debt stood at Euro6.28bn at the end of 2011, down 19% from a year earlier.

Spain: The Spanish cement producer Cementos Portland Valderrivas has announced that it will appoint Juan Bejar Ochoa as its executive chairman. Bejar will replace Dieter Kiefer, who will leave the company after four years at the helm. Juan Bejar joined the company recently in January 2012.

The changes in Cementos Portland's top management come at a tough moment for the firm given the slump in cement sales on the domestic market, as well as the problems at its production sites in Tunisia.

The Spanish cement producer Cementos Portland Valderrivas has approved the nominations of Juan Bejar and Jose Manuel Burgos as board members. Bejar currently occupies the post of executive chairman at domestic motorway operator Globalvia and Burgos is a vice-chairman at the real estate firm GMP. They will replace Rafael Martinez-Ynzenga Canovas del Castillo and Feliciano Fuster.

Spain: Spain's competition watchdog CNC has imposed a fine of Euro11.1m on five cement companies, namely Cementos Portland, Beriain, Cetya, Vresa and Cemex España, which have been accused of setting up a cartel in northern Spain.

Cementos Portland was ordered to pay Euro5.72m, followed by Beriain with a Euro2.5m fine. Next came Cetya and Vresa with fines of Euro1.14m and Euro0.96m respectively. Cemex España will be forced to forfeit Euro0.5m.

Spain: French cement group Lafarge has announced that it has acquired a 35% stake in the cement plant of Spanish construction and property development group Lubasa at the port of Castellon.

Under the agreement, the facility will receive clinker supplies from Lafarge cement plants. The company declined to reveal financial details of the deal.