Displaying items by tag: Switzerland

Switzerland: As part of its on-going 'Leadership Journey' Swiss multinational cement producer Holcim has announced that it will be reducing its management structure in Europe to cope with lower levels of construction activity in the region. The group says that proposed measures evaluated and existing ones will lead to annual cost savings of at least Euro99m, a better utilisation rate of capacity and a more efficient allocation of capital expenditure.

The additional cash costs for restructuring in the fourth quarter of 2012 will amount to approximately Euro83.8m including site restoration costs. Write-offs of property, plant and equipment will total Euro339m and will be charged in the fourth quarter of 2012. Consultation procedures with regards to impact on personnel have been initiated in some group companies.

The restructuring accelerates the implementation of the Holcim Leadership Journey. The major part of the anticipated cash costs of Euro166m to realise the Holcim Leadership Journey will be incurred in 2012. The group's payout potential for the 2012 financial year (pre-write-offs) remains. The board of directors will propose the level of the payout at the end of February 2013, as part of the year-end financial statement to be submitted to the annual general meeting.

US/Switzerland: Holcim US has announced that its president and CEO, Bernard Terver, will join the executive committee of the company's parent Holcim Ltd.

As part of the 'Holcim Leadership Journey,' an initiative which streamlines and strengthens operations, Terver will also assume responsibility for the new group region of North America, comprising Holcim US, Holcim Canada, Aggregate Industries (US) and Aggregate Industries UK. Filiberto Ruiz will serve as deputy chief executive officer of Holcim (US) and Aggregate Industries US. Prior to his promotion, Ruiz was senior vice president of sales and marketing for Holcim US.

"I'm confident that these management changes will reinforce our commitment to customer excellence and to the development of our employees as they become the next generation of leaders," said Bernard Terver, president and CEO of Holcim US. "Filiberto's experience makes him an excellent choice for this new role and I am looking forward to collaborating as the company advances."

"I am honoured to have been appointed to lead US operations," said Filiberto Ruiz, deputy chief executive officer of Holcim (US) and Aggregate Industries US. "Holcim US and Aggregate Industries US are solid organisations and I look forward to continuing to build on the work that has taken place under Bernard's leadership."

Terver has been president and CEO of Holcim US since October 2008 and Aggregate Industries US since 2010. In the same year he also became area manager. He joined Holcim in 1994 when his employer CEDEST was acquired by Holcim France. In 1999, he became chief executive officer of Holcim Colombia and in 2003 was appointed area manager for the Andes nations, Central America and the Caribbean.

Ruiz began his career with the Holcim Group in 1986 as electrical supervisor with Holcim Apasco in Mexico, later becoming plant manager. In 1999 he became regional vice president for manufacturing at Holcim US. He returned to Holcim Apasco as cement operations, vice president and moved back to Holcim US in 2006 as senior vice president for manufacturing. He has been in his current role, senior vice president for sales and marketing, since 2010.

Switzerland: Holcim's net income has risen by 9% for the first six months of 2012. Despite this, the world's second-largest cement maker plans to cut costs and raise cement prices to meet its financial targets. These have been both hit by poor demand Europe and high-energy costs.

The company's net income attributable to shareholders rose to Euro324m in the January 2012 to June 2012 period from Euro267m in the same period of 2011. Net sales rose by 2%, to Euro8.62bn from Euro8.45bn. Operating earnings before interest, tax, depreciation and amortisation rose by 1.9%, to Euro1.61bn from Euro1.60bn. Sale volumes of cement rose by 4%, to 74Mt from 70.9Mt. Second quarter results for the April 2012 to June 2012 period supported these overall trends.

By region, Holcim's Asia Pacific and Latin America areas showed steady growth while Europe continued its decline. In Asia Pacific sales of cement rose by 8% for the half year, to 41.2Mt from 38.1Mt. In Latin America sales rose by 3.3%, to 12.1Mt from 11.7Mt. In Europe sales fell by 4.1%, to 12.3Mt from 12.8Mt, mainly due to poor performance in the first quarter of 2012. In North America sales rose by 8.6%, to 5.4Mt from 5Mt. In Africa and the Middle East sales rose by 2.7%, to 4.5Mt from 4.4Mt.

"While demand in North America should beat the previous outlook, Holcim now expects a decline in Europe," the Holcim said. The firm's construction industry customers, especially those in southern Europe at the heart of the debt crisis, are suffering as governments slash spending in an attempt to get budgets under control. Analysts at Bank Vontobel said that while Holcim's overall outlook was almost unchanged, the contribution of Europe compared with North America was three times bigger, making this effectively a 'reduction of the outlook'.

The Swiss cement maker said that its spending cuts were under way and would result in an additional operating income of at least Euro125m in 2012.

Switzerland/India: Engineering company ABB has secured an order worth US$18m in India to design, engineer and supply integrated automation and modern electrification systems for Century Cement's Manikgarh cement plant in central India.

ABB's delivery is part of a two-line expansion and plant modernisation project that will add production capacity of 2.8Mt/yr, more than doubling its current production capacity. The project also includes a 60MW thermal power plant onsite. providing a reliable on-site power supply that will improve energy efficiency. The turnkey project is scheduled to be completed by early 2014.

"Our proven experience in executing large and complex projects, minerals and cement industry expertise and leading automation and power technologies helped us to secure this important order," said Veli-Matti Reinikkala, head of ABB's Process Automation division.

ABB will deliver integrated power and automation systems using a plant-wide 800xA automation system to control, connect and optimise the performance of all processes and systems. The scope of supply includes medium-voltage switchgear, distribution transformers and other electrical equipment and power systems, intelligent low-voltage motor control centres, variable speed drives, instrumentation and collaborative production management systems. ABB will also provide design, engineering, project commissioning and other site services.

Switzerland: ABB, EKZ GETEC and Jura Cement have signed an agreement to install an ABB waste heat recovery (WHR) system at the Wildegg AG cement plant in Switzerland. The WHR is based on organic Rankine cycle (ORC) technology, less common than the steam Rankine cycle, which currently dominates the waste heat recovery sector for cement plants. It is expected that Jura Cement will have to purchase about 20% less electricity from the grid for its operations at Wildegg as a result of the installation. EKZ GETEC is financing the system. It is also supported by the Swiss Federal Department of Energy within its 'Energy Switzerland' programme.

ABB has the expertise required to completely integrate the power plant into the cement production process. The turnkey power station order includes design, project management, delivery, installation and commissioning and is scheduled to be commissioned in November 2013.

Marcel Bieri, production manager at Jura Cement, said, "We will be able to generate 14,400MWh of electric power using ABB's waste heat recovery system. That's enough to satisfy the power demand of about 3600 Swiss households." Cement companies that use WHR technology benefit over the medium to long term because they are less exposed to rising energy prices. Payback times on the capital expenditure necessary for installing WHR plants vary but can be as little as two years in some cases.

Switzerland: Holcim has launched a targeted cost-cutting programme aimed at increasing operating profit by at least Euro1.25bn by the end of 2014.

The aims of the 'Holcim Leadership Journey' programme include increasing its fixed cost savings, improving energy-efficiency, increasing the use of alternative fuels and raw materials, cutting logistics costs and reducing net working capital. The company said it expected to achieve a positive impact of at least Euro124m in 2012 and anticipated one-off costs of less than Euro167m to complete the programme. Holcim had an operating profit of Euro1.92bn in 2011, excluding one-off items of Euro312m.

Chief executive Bernard Fontana is known as a cost-cutter having launched a similar 'Leadership Journey' cost savings plan in his former role as head of Luxembourg-based stainless steel maker Aperam. Like other energy-hungry cement makers, Holcim has grappled with higher coal, diesel and oil prices, which have added to production and transportation costs.

Holcim said that reducing logistics costs would add an extra Euro208m to operating profit by 2014, while improving energy-efficiency and using alternative fuels should add Euro250m in savings. Improving customer focus, streamlining the procurement process and increasing fixed cost savings should bring in savings of some Euro791m. The company also said that it might make some selective divestments.

Switzerland: Holcim has reported improved earnings before interest, tax, depreciation and amortisation (EBITDA) and better prices in all regions in the first quarter of 2012. Overall, Holcim achieved an operating EBITDA close that seen in the first quarter of 2011, with like-for-like operating EBITDA growth reaching 5.5%. Consolidated net sales increased by 2.2% to Euro4.0bn. In absolute terms, Asia Pacific ranked first with net sales of Euro1.83bn.

Holcim's net income of Euro96.6m was almost as high as the level reached in the first quarter of 2011 and the net income attributable to shareholders of Holcim Ltd rose by 1.2% to Euro8.3m.

Another positive development is the fact that Holcim was able to mostly pass on cost increases through higher sales prices in all segments and in all regions (except Africa and the Middle East). The company also reported that it had reduced its net debt by nearly 5% over the 12 months to 31 March 2012.

Consolidated cement deliveries increased by 6.2% to 35.2Mt due to good economic conditions in Asia and Latin America and growing demand for construction materials in North America, Africa and the Middle East. With shipments of cement up by more than 1.8Mt, Asia Pacific was well ahead in terms of volume, mainly due to India. Higher shipments also were achieved in the US, Thailand, the Philippines and Indonesia as well as in Russia and Azerbaijan.

However, in contrast to last year's mild climate, the harsh winter brought many construction sites in Europe to a temporary standstill in February 2012. Sales volumes decreased in this region in all of Holcim's business segments as a result, impacting on the company's first quarter results.

Holcim expects demand for building materials to rise in emerging markets in Asia and Latin America, as well as in Russia and Azerbaijan in 2012. A slight improvement for North America can also be expected. In Europe, demand should remain stable, provided that the situation is not undermined by further systemic shocks. In any case, Holcim says that will give cost management its closest attention and pass on inflation-induced cost increases. Holcim says that its approach to new investments will be cautious and that it expects that it will achieve organic growth at operating EBITDA level in 2012.

Switzerland: Holcim has reported Euro363m loss for its fourth quarter of 2011 after being hit by a Euro643m impairment charge on its assets in South Africa and Europe. It said that it expects organic growth in operating earnings before interest, tax, depreciation and amortisation (EBITDA) in 2012. For 2011 as a whole, Holcim reported higher sales volumes for cement, aggregates and ready-mix concrete, although its consolidated net sales decreased by 4.2% (7.5% increase like-for-like). Its operating EBITDA decreased by 12.3% (down 0.2% like-for-like). Its net income fell to Euro565m.

Holcim said that it expects demand for building material to rise in emerging markets in Latin America and Asia, as well as in Russia and Azerbaijan in 2012. It also expects a slight improvement for North America. In Europe, Hocim believes that demand will remain stable, provided that the situation is not undermined by further systemic shocks in the Eurozone. "Holcim expects that the group will achieve organic growth in terms of operating EBITDA," the company said in its quarterly report.

Switzerland: Holcim surprised investors with a profit warning today, after announcing it would take a Euro641m hit in one-off charges on its 2011 accounts. The bulk of the impairment relates to a Holcim-specific issue in South Africa regarding AfriSam but analysts noted the decision to write down the value of assets in parts of Europe and the US on the back of sharply lower demand could be echoed by other cement makers.

"Some mature markets will never again see the record levels of profitability of the mid-2000s. Other players could be forced to do the same," warned Josep Pujal of Kepler Capital Markets.

Euro343m of Holcim's charges stemmed from completely writing down its remaining South Africa investment following a steep fall in demand for construction materials in the country since 2010. Holcim's South African exposure stems from its former local subsidiary, the country's biggest cement maker by sales, AfriSam. The remainder of the write-offs stem from adjusting property, equipment and goodwill lines in the group's accounts to much weaker markets. Some Euro271m in writedowns related to Spain and eastern Europe and Euro26m related to the US.

Switzerland: Holcim has blamed a 32% fall in income for the third quarter on the strong Swiss franc.

Holcim's income fell by 32% to USD460m in the third quarter from USD680m in the second quarter of 2011. Over the nine months to 30 September 2011 its income fell by 18% year-on-year to USD1.1bn from USD1.4bn in 2010. Sales mirrored this decline, falling year-on-year by 6.1% to USD5.9bn over the nine months to 30 September 2011 compared to USD6.3bn in 2010. The decline in sales between the second and third quarters was similar at 6.7%.

Despite the fall in total group income and sales, sales of cement rose in both the nine-month and quarterly period. For the nine months to 30 September 2011 sales rose by 5.2% to 108Mt from 103Mt. For the quarter ending 30 September 2011 volume sales rose by 6.2% to 37.2Mt from 35Mt in the quarter ending 31 July 2011.

"The strong appreciation of the Swiss franc during the first half of 2011 continued to negatively impact the financial result during the quarter, albeit to a lesser extent than during the second quarter," said Chief Financial Officer Thomas Aebischer. Holcim's sales during the three months to 30 September 2011 were reduced by USD948m by the currency. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) were reduced by USD200m, according to Aebischer.

As expected, Holcim noted that many emerging markets enjoyed brisk construction activity. In the Eurozone and in North America growth mainly remained restrained. The Latin America cement sector achieved the strongest rise in sales volumes, followed by Asia Pacific and Europe. In particular, the group's companies in Russia, Singapore, Indonesia, Colombia and Australia made larger contributions in Swiss francs to the sales. Where other group companies improved their results in local currency terms these successes were cancelled out overall by the strong Swiss franc.

In its outlook Holcim has pinned its hopes for consistent growth in the emerging markets of Latin America and Asia whilst singling out Africa and the Middle East for continued poor trading. In Europe and North America Holcim's intends for its lean cost structure to enable it to benefit more than average from any economic recovery. Lastly, the group mentioned that the sharp global rise in energy, raw material and transportation costs call for further price adjustments.