Displaying items by tag: cement boards

US: The Federal Trade Commission (FTC) has approved Boral’s proposed acquisition of Headwaters. Boral expects that the transaction will be completed within two business days. The transaction is worth US$2.6bn. Following the purchase Boral USA and Headwaters will form a new division to be named Boral North America.

“We have been eagerly awaiting the approval from US regulators to allow us to complete the acquisition and to deliver on our strategy. In the meantime, we have continued to develop our integration plans and we are confident in our ability to deliver on the synergy targets we established when the transaction was announced,” said Boral’s chief executive officer and managing director Mike Kane. He added that Boral North America will focus on building products and fly ash.

Australia: Boral’s revenue from its cement business fell by 4% year-on-year to US$118m in the first half of its financial year, which ended on 31 December 2016. Total cement sales volumes rose by 3%. The building materials producer blamed the fall in sales revenue on low wholesale clinker volumes due to higher direct sales volumes of cement. Its sales prices for cement grew by 1% for bulk cement and 3% for packaged products. It added that, although competition pressure and energy costs are rising, its cost improvement plans are helping.

Overall, Boral’s sales revenue fell by 5% to US$1.6bn from US$1.68bn. However, its profit after tax rose by 9% to US$114m from US$105m. It attributed this to a ‘solid’ performance in Australia combined with good earnings from Boral USA and USG Boral.

US: The shareholders of Headwaters have approved the acquisition of the company by Australia’s Boral. Over 98% of the votes cast were in favour of the deal. Boral will now continue to seek regulatory approval for the purchase and it plans to complete the deal by mid-2017. Headwaters’ Construction Materials division is one of the largest marketers of fly ash in the US.

US: Boral has agreed to buy Headwaters, a manufacturer of building products, for US$2.6bn subject to shareholder and regulatory approval. Headwaters’ Construction Materials division delivers around US$370m/yr of revenue and is one of the largest marketers of fly ash in the US. Boral has described the acquisition as ‘transformative’ as it will significantly boost its US division, Boral USA.

“The businesses of Headwaters are highly complementary with Boral’s existing US operations – in fly ash, roofing, stone and light building products. It’s this strong alignment that means we can deliver substantial value through synergies – ramping up to approximately US$100m/yr of synergies within four years of closing,” said Boral’s chief executive officer and managing director Mike Kane.

Australia: Boral’s profit after tax has risen by 8% year-on-year to US$204m in its financial year which ended on 30 June 2016 from US$190m in the previous year. Its sales revenue fell, by 2% to US$3.28bn, but revenue from continuing operations rose slightly. Revenue from continuing operations benefitted from stronger residential activity in Australia and the US, which offset the decline in resource-based and other major project activity. The company’s earnings before interest and tax (EBIT) also rose due to operational cost improvements, lower fuel costs and some pricing gains.

“We have continued to improve our performance across our businesses in line with our strategy, managing our portfolio more efficiently and maintaining a strong balance sheet,” said CEO and managing director Mike Kane. “The continued growth in Boral’s earnings demonstrates the great work that has been done to improve our cost base, grow margins, and efficiently supply market demand, which continues to be strong in Australia and Asia, and is growing in the US.”

The group’s revenue from its cement business grew by 3% to US$231m due to a 6% increase in cement volumes due to stronger activity in New South Wales and 2% higher average prices, partially offset by lower wholesale clinker volumes due to kiln availability. Earnings also grew with cost improvement initiatives, including improved utilisation of assets and sourcing of lower cost raw materials and energy.

Australia: Boral’s profit after tax has grown by 23% year-on-year to US$97.2m in the first half of its 2016 financial year. It reported a profit of US$80m for the same period in its 2015 period. It attributed the growth to a strong residential
market and growth in New South Wales (NSW) with cost cutting, price rises and slightly higher property earnings for its construction materials and cement business. Overall revenue fell by 4% year-on-year to US$1.6bn.

“The success of the first half is underpinned by a very strong residential construction market in NSW, a solid performance in South-East Queensland, further recovery in the US and a successful growth strategy in the gypsum business in Australia and Asia,” said Boral CEO and Managing Director Mike Kane

Boral’s cement business reported a 6% rise in external revenue to US$113m. Profitability was also aided by cost cutting inititaives including improved utilisation of assets and sourcing of raw materials and energy at lower cost.

US: US demand for fibre cement products is forecast to grow by 5.8%/yr until 2019 to 2.9Bnft², valued at US$2.2bn.

Accelerating construction expenditures, specifically in new housing, will spur demand. Siding is by far the largest application for fibre cement and demand will benefit from the popularity of fibre cement sidings in the south and west of the US, the regions that will experience the strongest growth in population and housing starts going forward. These and other trends are presented in 'Fiber Cement,' a new study from The Freedonia Group, a Cleveland-based industry market research firm.

The residential market accounts for the majority of fibre cement demand. According to Construction Group Leader Tom Bowne, while new housing demand for fibre cement products will rise at the fastest pace through 2019, residential improvement and repair will continue to account for a larger portion of residential demand. Sales of existing housing will generate demand for fibre cement products as homeowners look to increase the value of their properties before going to market.

Exterior fibre cement products have seen increasing use in the non-residential market in recent years, particularly in the form of fibre cement backer-board products. Fibre cement product demand in the non-residential market is forecast to grow by 5.4%/yr until 2019 to 670mft². Rebounding non-residential building construction demand will primarily drive gains. In addition, fibre cement siding and exterior trim will benefit from a design trend in commercial buildings that favours an exposed-wood appearance for exteriors. Fibre cement product manufacturers have responded to this demand by developing new wood-like products aimed at commercial buildings.

Siding accounts for over 70% of fibre cement product demand. Fibre cement manufacturers have found a great deal of success in this application, managing to penetrate a competitive market and becoming a major material option in siding over the course of a couple of decades. Backer-board is the second-largest application for fibre cement in the US and is expected to post above average growth in the forecast years.

Australia: James Hardie's adjusted net operating profit for the second quarter of its 2016 fiscal year, which ended on 30 September 2015, was flat at US$65.3m and up by 12% for the first half of the year to US$129m. The quarterly result was affected by a higher adjusted income tax expense and higher gross interest expense offsetting the favourable operating performance. Half year sales were up by 2% to US$879m.

CEO Louis Gries said that all business units had performed well, driven in particular by its USA plants and lower input and freight costs. He said that primary demand growth in its USA business had again tracked below its targeted level. The company will focus on lifting its USA primary demand growth rate back up over the next several quarters.

The company expects its USA and Europe fibre cement segment earnings before interest and taxes (EBIT) margin to be towards the higher end of its stated targeted range of 20 - 25% for its full 2016 fiscal year.

In other news, James Hardie has re-opened its Queensland, Australia fibre cement manufacturing facility following a US$64m expansion. It said that the expansion of Carole Park, near Brisbane, will boost Australian capacity by 40% to meet strong domestic demand. "At a time of decreasing investment in manufacturing in Australia, James Hardie's US$64m investment in this new facility reflects our confidence in our Australian business, the future of manufacturing in this country and the underlying economy of Australia," said Gries.

Australia: Boral chief executive Mike Kane has said that higher product prices are playing a part in the strong performance of its key businesses so far in the 2015-2016 fiscal year. He noted that cement prices were up in New South Wales and southeast Queensland but steady elsewhere.

"Based on the first quarter results, we are seeing an improvement in year-on-year results. The business is consistent with our expectations this year," Kane told shareholders at Boral's AGM. "Price is playing a role in our performance, as well as cost management. On average, we think prices will move up, but we will have more clarity on that as we get through the half year."

The company has experienced lower demand from roads, engineering and major infrastructure projects so far in the 2015 – 2016 fiscal year, but has responded by reducing costs and pushing through a number of surplus property sales.

Belarus: The Belarusian civil engineering company ZAO Belzarubezhstroy has opened a cement-bonded particleboard plant in Krichev, Mogilev on 5 October 2015. Austria's VST Building Technologies was a partner of Belzarubezhstroy and an investor in the project.

The new plant uses the premises of the former Krichev meatpacking factory and is located 7km from the Krichev cement mill, where its cement is sourced. Imported equipment was installed. The plant will make cement-bonded particleboards using the process flows developed by VST Building Technologies. The new technology boasts high speed and quality of construction processes, energy-effectiveness and wide geographical deployment.

The Belarusian Architecture and Construction minister Anatoly Cherny stressed that the opening of the plant represents a truly ground-breaking event for the civil engineering industry of the oblast and the country. "With cement-bonded particleboards of our own, we will be able to greatly reduce the cost of residential housing construction. We will be able to build more homes and export more construction materials," said Cherny.

The plant's construction was prompted by the rapid pace of housing and industrial construction in Belarus, as well as the need to find new ways to modernise the civil engineering industry and reduce costs. Belarus has had to import cement-bonded particleboard to make the panels until now. In addition to serving the local market, over 25% of the cement-bonded particleboard produced will be exported to the Commonwealth of Independent States (CIS) and the European Union (EU). The plant's proximity to the Belarusian-Russian border and the two rail lines going in the eastern direction will minimise the costs of exports to Russia.

Belzarubezhstroy director general Vitaly Bondarik said that the project was a historical one for the company. "We hope that the site will become kind of a springboard for advancing joint operations and implementing new construction projects in Belarus and abroad together with our partner, VST Building Technologies AG. We expect a successful future and intend to implement a number of joint projects in Venezuela, Saudi Arabia, Ecuador, Algeria and other countries. The enterprise should become a successful example of a new construction formation in Belarus," said Bondarik.

Belzarubezhstroy used its own resources and foreign investments to build the plant. It will create 200 jobs to reach the designed output capacity of 60,000m3/yr. In the future, the output capacity may be increased up to 100,000m3/yr.

The new plant is the first step of the programme sketched out by the Belarusian and Austrian partners.