Displaying items by tag: Titan
Titan’s turnover remains stable in 2017
28 March 2018Greece: Titan Group’s turnover fell slightly to Euro1.51bn in 2017. Bad weather, the devaluation of the Egyptian Pound and weakening of the US Dollar affected its operating results despite a buoyant US market. Its earnings before interest, taxation, depreciation and amortisation (EBTIDA) fell by 1.9% year-on-year to Euro273m in 2017 from Euro279m in 2016. Its net profit fell by 66.5% to Euro42.7m from Euro127m.
The cement producer’s turnover grew by 9.9% to Euro873m in the US despite Hurricane Irma in September 2017 and other poor weather effects. In Greece it reported that build activity weakened further in 2017. It said that although export volumes remained high, its profit margins were hit by the lowering value of the US Dollar and increased fuel prices. Overall, the turnover of its Greece and Western Europe region fell by 4.8% to Euro249m. In Southeastern Europe turnover rose by 10.5% to Euro226m due to increased demand for building materials. Turnover in the Eastern Mediterranean region fell by 36.5% to Euro158m due to negative currency effects in Egypt and a fall in cement demand.
Egypt: Titan Cement Egypt is planning to spend US$8m towards building a 8MW solar power plant next to its Beni Suef cement plant. Surplus energy from the unit will be sold to the national grid, according to the Al Borsa newspaper. The project is at the bidding stage with contractors but the cement producer is believed to be in ‘advanced talks’ KarmSolar.
Roanoke Cement terminals recertified by Wildlife Habitat Council
14 November 2017US: The Wildlife Habitat Council (WHC) has recertified four of Roanoke Cement Company’s terminals in Virginia and North Carolina. Units at Front Royal, Richmond and Bristol in Virginia and Winston-Salem, North Carolina received the certification.
"Having the Wildlife Habitat Council's recertification for each of them is a distinguished recognition confirming that all of Roanoke Cement's sites are on the right track ecologically. We look forward to continuing our conservation efforts providing pleasing, ‘green’ features within our terminal campuses. A few examples include pollinator meadows at Front Royal and Winston-Salem, avian habitats for the Eastern Bluebird in Richmond, and stream restoration in Bristol," said David Brinkley, Director of Distribution & Customer Resources at Roanoke Cement Company.
WHC's certification program, ‘Conservation Certification,’ is built on global recognition programs, reflects contemporary conservation efforts and applies its collective learning to the future of biodiversity in the US and the globe. Front Royal, Richmond and Winston-Salem were originally certified in 2013. Bristol was originally certified in 2015. Certification by WHC is valid for two years.
Titan benefits from US market so far in 2017
02 November 2017Greece: Titan Cement’s sales and operating profit have all benefited from growth in the US so far in 2017. The group’s net sales grew by 1.8% year-on-year to Euro1.14bn in the first nine months of 2017 from 1.12bn in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 4.6% to Euro215m from Euro205m.
In the US sales grew by 14% to Euro667m in the year to date, despite a poor third quarter due to disruption by hurricanes and other weather events. In the group’s Greece and Western Europe region, sales fell by 3% to Euro190m and earnings fell also. However, sales rose in Southeastern Europe by 10.5% to Euro173m although rising fuels costs dented its earnings. Market conditions remained ‘challenging’ in Egypt with demand for building materials in 2017 estimated to be about 8% below the previous year’s levels and prices still impacted by the low value of the Egyptian Pound. Overall, the group’s Eastern Mediterranean region saw its sales fall by 39% to Euro114m and earnings fell by 66% to Euro11.1m. Further issues were reported in Turkey due to competition but joint venture operations in Brazil saw faint improvements in the third quarter of the year.
After the storm
13 September 2017Weather always seems like an excuse in cement company financial reports. It seems that it can pop up when a producer has nothing else to blame for its poor performance. Except, of course, when there has actually been some bad weather. With this in mind the weather is likely to have a rather larger presence in the next set of results for companies in the Caribbean and Florida in the aftermath of Hurricane Irma. The storm tore across the region in a rough north-western bearing, reaching Category Five hurricane status on the Saffir–Simpson scale with sustained winds of over 252km/hr. It caused loss of life and mass destruction to property and infrastructure.
Bottom lines flutter in the wind as construction markets upend in the wake of the weather. Yet cement companies have a more direct relationship with extreme weather events. Cement plants themselves are large industrial sites with staff and equipment that are vulnerable to the elements. This is covered by a company’s resilience strategy but it can include things like reducing non-essential staff levels, shutting down production and securing a site. Cemex USA, for example, set up telephone lines to help employees in need of assistance for both Hurricane Harvey in Texas in late August 2017 and Irma this week. Titan America shut down its Florida operations over the weekend ahead of Irma and then started reopening them on 12 September 2017.
To look at one facet of preparing a cement plant shutting a clinker kiln down with adequate notice, like for a maintenance period, is one thing. Yet doing it in an emergency is an entirely different proposition as the kiln generally needs time to cool down. Global Cement discovered what happens when a kiln is simply stopped when it visited the Cemex South Ferriby plant in the UK. The plant suffered a complete electrical outage following a tidal surge at the site. A 22m-long section of one of the kiln shells had to be replaced because it had been distorted by the sudden cooling.
Secondly, the concrete that cement is used to make plays a key role in what the Portland Cement Association (PCA) and others call resilient construction. Typically concrete structures and buildings survive extreme weather events better than other weaker building materials. Although a wide range of other factors such as building design, foundations and roofing construction are also important. Notably, much of the footage that emerged during the storm in Florida was shot from concrete buildings. As Cary Cohrs, former chairman of the PCA put it: "The greenest building is the one still standing." At the time of this push 2013 Cohrs and the PCA were lobbying to strengthen US building codes and standards. It is likely that the association will renew its efforts in the wake of Irma.
With the winds slackening, the clean up operation starts. Cemex USA’s Houston Terminal said it had reopened for business after Harvey despite being two feet under water a week earlier. As reports start to emerge about the scale of the devastation in the region following Hurricane Irma the insured losses have been estimated at US$20 – 65bn by analysts quoted by the Financial Times. Two things are certain though. One, bad weather is likely to make an appearance in the third quarter financial reports and, two, the rebuilding is going to need lots of cement.
Greece: The US market has continued to drive Titan Group’s sales in the first half of 2017. Its overall turnover rose by 6.9% year-on-year to Euro774m in the first half of 2017 from Euro724m in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18.9% to Euro142m from Euro120m. Over half of its turnover came from the US where the group noted rises in residential and infrastructure construction following economic growth and increased employment.
In the group’s other territories the situation was mixed, with the Greek construction market remaining depressed. Here cement consumption declined in the first half of 2017 following the end of several larger scale infrastructure projects during the early months of the year. Markets in Southeastern Europe delivered higher turnover but profits were hit by raising energy costs. Egypt continued to be negatively affected by the devaluation of the Egyptian Pound, although the group did manage to recapture sales volumes by increasing its fuel grinding capacity. Local competition arising from the start up of two new plants near to where its Adoçim subsidiary operates decreased sales volumes in Turkey and the construction market continued to decline in Brazil.
US: Roanoke Cement, a subsidiary of Titan America, has achieved its 11th consecutive annual certification in the US Environmental Protection Agency's (EPA) Energy Star certification for its Troutville plant in Virginia. To qualify for the certification the cement producer was required to perform in the top 25% of cement plants nationwide for total energy efficiency (thermal and electrical) and meet strict environmental performance levels set by the EPA.
“Roanoke Cement Company’s plant sits in the Roanoke Valley, in the shadow of the Blue Ridge Mountains. The stakes are higher for us, surrounded by all that beauty, to perform at the pinnacle of the cement industry in energy efficiency,” said Chris Bayne, Roanoke Cement’s Energy Manager.
Greece: Titan Group’s finances recorded an improvement in the first quarter of 2017, primarily due to the continued recovery of the US market. All geographic regions where the group operates recorded higher sales volumes with the exception of Greece, where demand remains stagnant at low levels.
Consolidated turnover was Euro361.8m, a 7.1% increase year-or-year compared to the first quarter of 2016. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 18% to Euro51.1m. The net result after minority interests and the provision for taxes was a loss of Euro3.9m versus a loss of Euro18.6m.
The US market continues to constitute the main regional growth driver for Titan. Turnover in the country rose by 26.9% year-on-year to Euro221.2m. EBITDA almost doubled to Euro34.1m from Euro17.9m in the same period of 2016.
In Greece, residential building activity remained at very low levels, affected by the domestic economic crisis and increased uncertainty. Certain major public road projects were concluded early in 2017 leading to lower cement consumption. Export volumes were lower than the previous year due to competitive global conditions. The subdued market coupled with increased energy costs led to a decline in profitability. In total, group turnover for Greece and Western Europe for the first quarter of 2017 declined by 7.7% to Euro57.6m, while EBITDA, suffering from higher energy costs, fell to Euro4.4m from Euro8.3m.
Turnover in the markets of Southeastern Europe increased in the quarter but continuing competitive pressures and higher energy costs, both negatively impacted profitability. Total turnover increased by 5.8% to Euro37.9m, while EBITDA declined to Euro3.8m from Euro6.3m.
In Egypt, the group’s plants have been in full operation utilising locally-ground solid fuels, which allowed for an increase in production and sales volumes in the first quarter of 2017. The group said that the economy has not yet adjusted to the large devaluation of the Egyptian Pound in 2016 and a climate of uncertainty and volatility is affecting building activity and market prices. Turnover in Egypt during the first quarter was Euro45.2m, a significant increase in local currency but a 30.8% decline in Euro-terms, while EBITDA reached Euro8.9m, a 17.4% decline in Euro terms.
In Turkey demand was affected by a heavy winter and negative foreign exchange differences further impacted Adocim’s results. The net result attributable to Titan was a Euro0.5m loss versus a profit of Euro0.4m.
In Brazil, despite the improvement in key macroeconomic indicators, the market remained in decline compared to the same period in 2016. The signs of improvement in the construction confidence index have yet to be translated into an increase in demand for building materials.
Greece: Titan Cement’s turnover grew by 8% year-on-year to Euro1.51bn in 2016 from Euro1.4bn in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 28.7% to Euro279m from Euro216m. The group attributed its success to continuing growth in the US and a recovery in Egypt.
By region, the US was the main source of growth for the group providing 53% of sales and 52% of operating profit. Its turnover in the US grew by 169% in 2016 to Euro794m. In Greece cement consumption remained similar to 2015 and the group continued to export a large proportion of local production. Despite this both turnover and EBITDA fell. In southeast Europe the group reported mixed results with rising sales volumes, falling prices and turnover and rises in profitability. In Egypt the market picked up and grinding and solid fuels upgrades at Titan’s plants compensated for local currency devaluation. Subsequently, turnover grew by 3.5% to Euro249m. Finally, the group’s partly-owned subsidiary in Turkey, Adocim, reported a modest increases in profit despite local currency effects.
US: Titan America's Pennsuco plant, which includes cement manufacturing, aggregates, quarrying, block manufacturing and ready-mix concrete operations, has been officially recognised as a Gold Level Zero Waste facility, making it the only facility of its kind in the US to achieve Zero Waste Status.
"The Zero Waste Certification is a remarkable accomplishment and consistent with Titan America's commitment to striving for best-in-class sustainability practices. Congratulations to our Environmental Department and thanks to everyone at Pennsuco for their help and support. We should all feel very proud of this," said Randy Dunlap, president of Titan America's Florida business.
To qualify for Zero Waste Certification, the Pennsuco Complex was required to demonstrate greater than 90% diversion from landfill use for a minimum of 12 consecutive months. This includes reducing, reusing, recycling or composting discarded materials or recovering the materials for productive use in nature of the economy at biological temperatures and pressures. It requires implementing sustainable strategies for resource and waste management. The process for certification process also included an extensive on-site audit, which was performed by Zero Waste Council members.
Zero Waste recertification occurs every three years. The Pennsuco site is now aiming for Platinum Certification. Titan's Pennsuco Plant has also been recognised for other sustainability initiatives, including Wildlife Habitat Certification and EnergyStar Certification. Titan's two cement plants at Pennsuco and Roanoke have been EnergyStar certified for 10 consecutive years.