Displaying items by tag: US
Titan reports profit in 2014
06 March 2015Greece: Titan Group has reported a return to profit in 2014 after two loss-making years. The Greece-based cement producer has reported a profit before tax of Euro46.8m up from a loss of Euor9.4 in 2013. Turnover rose by 2.7% to Euro1.16bn from Euro1.13bn. However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 2.6% to Euro182m from Euro168m. Titan attributed the turnaround to continuing recovery in the US, improvement in the Greek market and better performance in Turkey and Southeastern Europe. Despite this, gas shortages in Egypt hit results negatively.
By region, Titan Group saw demand for building materials in Greece grow in 2014 due to low levels in 2013 and the re-launch of a road building campaign. The company reported that utilisation rates at its cement plants in Greece depend on exports to countries with low energy costs and no constraints on carbon dioxide emissions. Total turnover for the Group's Greece and Western Europe region in 2014 increased by 14% to Euro285m. In Southeastern Europe construction activity remained subdued. Turnover fell by 3.5% to Euro208m in 2014.
The US led turnover, supplying over one-third of the Group's total turnover. Sales were led by high growth rates in Florida. Turnover rose by 14% to Euro469m in 2014. In Egypt cement demand grew by 2.4% in 2014 but gas shortages and permit application delays for alternative fuels reduced production and shrunk plant utilisation rates below 50%. Turnover fell by 22% to Euro197m although imports helped cushion profit margins.
Development activities in 2014 saw an investment in solid and alternative fuels particularly in Egypt. The first solid fuels grinding mill was brought on stream at the Beni Suef cement plant at the end of 2014.
Martin Marietta reports 59% higher net sales in 2014
04 March 2015US: Martin Marietta has reported consolidated net sales of US$780m in 2014, compared to US$491m in 2013, a year-on-year increase of 59%. Its cement business net sales were US$100m, earnings from operations were US$22.5m and earnings before interest, taxes, depreciation and amortisation (EBITDA) were US$37.7m.
"2014 was a transformational year for Martin Marietta and we are proud of the results we delivered, including a 77% year-on-year increase in fourth quarter 2014 net earnings," said Ward Nye, chairman, president and CEO of Martin Marietta. "Employment growth in the US, a stimulus for construction activity, is at its highest rate since 2006. Texas leads the nation in job growth, with widespread gains across many industry sectors, including trade, professional business services, leisure and hospitality, education and health services."
James Hardie profit jumps despite soft US housing recovery
20 February 2015US/Australia: James Hardie chief executive Louis Gries said that the pace of the US housing recovery is underwhelming and remains below expectations as he reported an 11% rise in its third quarter 2015 adjusted profit to US$48.6m. Gries said that James Hardie has managed to increase prices on some product lines despite the slower-than-expected rebound in new home building in the world's biggest economy.
"We have higher volumes in all of our businesses and our average price is up in the US. The US housing market is still pretty flat for new construction. Housing starts are well below what you'd expect three to four years into a recovery," said Gries.
Despite on-going muted building in the US, where James Hardie derives about 80% per cent of its revenue, the company is going ahead with big capacity expansions at its Plant City, Florida, plant and at plants in Cleburne, Texas and Carole Park in Queensland, Australia. In the first nine months of its 2015 financial year, which ended on 31 December 2014, James Hardie spent US$154.3m on capacity expansions and new land acquisitions in New South Wales, Australia and Tacoma, Washington, USA. Some capacity expansions have been delayed pending a pick up in conditions.
James Hardie's net operating profit in the quarter that ended on 31 December 2014 rose by 17% year-on-year to US$108m. Revenue rose by 10% to US$388m. James Hardie expects full-year adjusted net operating profit to be between US$210 - 222m. In its Asia Pacific business, James Hardie expects strong growth in the Philippines due to momentum in high rise developments and a push into the commercial building market. The Australian and New Zealand businesses are both expected to improve on the back of strong new home building and a rebound in repairs and remodelling in Australia.
James Hardie has a legacy asbestos liability to compensate victims suffering asebestos-related diseases from use of the company's former products. It pays 35% of its operating cash flow into the independently-run Asbestos Injuries Compensation Fund (AICF). In the first nine months of its financial year, asbestos claims were 11% higher than actuarial expectations. On 1 July 2014, James Hardie paid US$113m to the AICF.
Ash Grove appoints David Meyer as CFO
11 February 2015US: Ash Grove Cement has appointed David Meyer as its new chief financial officer (CFO). Meyer will also serve as vice president of the company. He replaces Randy Vance who was promoted to president and chief operating officer in August 2014. As CFO of Ash Grove, Meyer will direct accounting, treasury, internal audit, tax and information technology functions.
Meyer previously worked as the CFO of Dairy Farmers of America (DFA), a US$13bn dairy cooperative that is the largest privately-owned business in Kansas City. While at DFA, he helped the company divest National Dairy Holdings and acquire a 100% stake in Kemps LLC.
Vulcan Materials’ profit soars on higher aggregates sales
11 February 2015US: Vulcan Materials' 2014 fourth quarter earnings surged on continued growth in aggregates shipments and stronger average selling prices. The company has also been expanding through a string of deals. Vulcan reported that it spent US$322m for bolt-on acquisitions during 2014.
"Strong momentum in the latest quarter bodes well for 2015, a year in which we expect a continued recovery in demand for our products and, importantly, an improving pricing and margin environment," said Chief executive Tom Hill. "Although aggregates demand remains well below normal levels, this steady and gradual improvement is a further indication of construction activity recovery," said Hill.
Vulcan reported a profit of US$38m in the fourth quarter of 2014, up from US$9.1m in the same period of 2013. Revenue during the period increased by 11% to US$755m. Vulcan said that the latest results benefited by around US$7m as the result of lower diesel fuel costs, mostly in its aggregates business.
57th annual IEEE-IAS/PCA Cement Industry Technical Conference to have 11 new training courses
09 February 2015US: The 57th IEEE-IAS/PCA Cement Industry Technical Conference will take place at the Sheraton Centre Hotel in Toronto, Canada from 26 – 30 April 2015.
This year's conference theme is 'BIG.' The participants will visit the biggest cement plant in Canada, the St. Marys Bowmanville facility. According to the organisers, every major cement producer will be represented. 11 new professional training sessions will be offered in 2015, each one twice. There will also be tutorial sessions including Mines Safety and Health Administration (MSHA) recertification as well and a general practices tutorial entitled 'Alternative fuels and raw materials (AFR) thermal substitution and its impact on process and emissions.'
Charlevoix cement plant expansion cleared
02 February 2015US: The Charlevoix County Board of Commissioners has approved the proposal by St Marys Cement to expand its cement plant in Michigan State. St Marys Cement, part of Votorantim Group, is planning a US$130m upgrade to the Charlevoix plant, which would increase its production capacity from 1.3Mt/yr to nearly 2Mt/yr.
According to local press reports, in a 5:1 vote that followed the hearing, the county board approved the upgrade plan. Commissioner George Lasater provided the lone vote in opposition. He said that he simply wanted to do more research on the proposal. Other commissioners described their votes in support as important to sustaining the economy in Charlevoix County.
The proposal now moves to the state Department of Environmental Quality for final approval. If the Charlevoix plans were rejected, St Marys officials have said they will seek to reopen the Illinois plant.
What is fuelling US cement growth?
28 January 2015The Portland Cement Association (PCA) put out a positive forecast for residential housing in the US last week. PCA Chief Economist and Group Vice-President Edward J Sullivan announced that housing starts will increase by 20% to 1.2 million units in 2015 from around 950,000 units in 2014. Strong gains are also expected for 2016.
This is relevant because in previous forecasts growth has been pinned on residential construction demand where there was a lag in demand following the recession in 2008. The PCA has not said whether this improves on its last forecast from late 2014. At that time the US cement market in 2014 was expected to grow by 8% despite a late start to the building season and weaker than expected housing start figures. The latest release suggests that the PCA has become more optimistic about the number of houses being built.
Interestingly, Sullivan pointed out that the focus is on family homes, with high student debt levels excluding the millennial generation born in 1980 - 2000 and with the baby boomers now leaving the market. As an aside, it is worth mentioning that specifying millennials in relation to housing starts is pertinent outside the US also. In the UK, for example, age of first time house buyers has been steadily rising in recent years. This has implications for the construction market and the cement industry alike.
Back in the US, demographic trends are on the side of the cement producers, led by a rising population. Cement demand growth of around 8% is expected in 2015 and 2016. Forbes placed Houston, the location of last week's 2nd Global Well Cem Conference, as America's fastest-growing city. Census data show that it saw a population growth of 392,742 inhabitants in the metropolitan Houston area between 1 July 2010 and 1 July 2013. Put another way this amounted to an extra 10,909 people moving into town each month (!) during this period. That calls for a lot of cement as these people demand houses and infrastructure.
Unfortunately the fly in the ointment here is that the global price of oil has been falling since mid-2014 and Houston's growth is dependent on the oil industry and its associated industries. By extension the cement industry in Texas, the US's biggest producing state, is also vulnerable. Houston may be an extreme example but the PCA is already wondering what the implications of low oil prices will have on the US construction industry as a whole. To this end, Sullivan is set to forecast that short-term gains could be made in the housing market if the oil price stays low but it could have a negative effect if the low prices continue.
One question is whether the US housing market is already experiencing this boost yet. If it is, housing starts and cement production in 2014 may have been artificially stimulated by cheap oil. In this case cement production growth in the US over the next few years may be slower than expected. We'll have to wait and see what Sullivan predicts but in the meantime it might be worth delaying buying that nice new house in Houston.
US: Haldor Topsoe, a catalysis producer, and FLSmidth, a supplier of equipment and services to the global cement and minerals industries, have signed a cooperation agreement that marks the beginning of a joined global effort to commercialise a new catalytic filter bag technology.
"Developing this product has been a combination of the very best that Topsoe and FLSmidth have to offer from an R&D perspective," said Bjerne S Clausen, CEO of Haldor Topsoe.
The product has been designed over the last four years and will carry the brand name EnviroTex catalytic filter bags. It is capable of removing dust, volatile organic compounds and nitrogen oxides in one integrated and cost-effective process. The patent-pending catalytic filter bags use three layers of filter fabric. Each layer contains a tailored catalyst optimised for the removal of specific kinds of compounds from the off-gas that passes through it.
As part of the agreement between FLSmidth and Topsoe, the new product will be manufactured at FLSmidth's bag production facilities in Georgia, USA. The filter bags will then be catalysed and assembled at Topsoe's catalyst production site in Houston, Texas. Topsoe's production site will be expanded with a new production line dedicated to the production of EnviroTex catalytic filter bags. The goal is to complete construction of this facility by the end of 2015.
US: The Michigan Department of Environmental Quality (DEQ) has granted approval for Lafarge North America to use scrap plastic and asphalt shingles at its cement kilns in Alpena, Michigan State.
Lafarge had requested to be allowed to burn additional fuels in the five cement kilns at its cement plant. Prior to receiving approval to use plastics and shingles as a fuel, the company had used coal, petroleum coke, clean wood and non-halogenated polyethylene and polypropylene as fuel. In its application, Lafarge said that it could use nearly 140,000t/yr of plastics, more than 82,000t/yr of wood and 54,673t/yr of shingles as a replacement fuel for the coal and coke.
Lafarge was issued a permit in 2012 to install technology to allow for a trial burn of shingles in the kilns. The permit required Lafarge to conduct stack testing for emissions of concern from the combustion of shingles. The emissions testing demonstrated that the emissions were less than what Lafarge had originally estimated, according to the DEQ.
Following analyses conducted by the DEQ, staff concluded that the proposed project would comply with all applicable federal air quality requirements and with all of the Michigan DEQ Air Quality Division regulations. The staff concluded that the project, as proposed, would not violate the federal policies.