Displaying items by tag: coronavirus
VDZ forecasts level cement demand in 2020
12 August 2020Germany: The Verein Deutscher Zementwerke (VDZ) has forecast domestic cement consumption of 28.7Mt in 2020, consistent with the 2019 level. The impacts of the coronavirus lockdown were offset by “a good start to the year, not least due to the weather conditions” and “the continued operation of construction sites in March thanks to the quick actions of politicians.”
The organisation said that the situation was unprecedentedly unpredictable with orders and building permits currently in decline. It expects demand to partly tail off in the fourth quarter of 2020, falling by between 3 - 5%, as companies postpone or discard planned developments in the face of restricted budgets. It said, “Nonetheless, the government’s economic stimulus pacts will undoubtedly provide a positive impetus through such initiatives as public infrastructure and multi-family housing projects.
Bangladesh: Cement producers imported US$760,000-worth of raw materials in the 2020 financial year which ended on 30 June 2020, down by 13% year-on-year from US$874,000 in the 2019 financial year. Clinker, calcareous stone, granulated blast furnace slag (GBFS) and gypsum imports totalled 18.6Mt, down by 11% from 21.0Mt, compared to annual growth of 15 - 20% since 2010.
The Daily Star newspaper has reported that this was due to decreased cement demand, with sales falling to 65,000t in April 2020 from 125,000t in March 2020 on account of the start of the nationwide coronavirus lockdown. Premier Cement managing director Amirul Islam said, “We are not getting the benefits we expected from the government. The sector’s capital is gradually running out, so all kinds of discretionary tax cuts are needed to save this industry.”
Bangladeshi cement producers import raw materials from Thailand, Vietnam and China.
Japan: Taiheiyo Cement recorded a net profit between 1 March 2020 and 30 June 2020, the first quarter of the 2021 financial year, of US$30.6m, down by 42% year-on-year from US$52.6m in the first quarter of the 2020 financial year. Sales fell by 3% to US$1.88bn from US$1.94bn. The company said that the coronavirus outbreak affected sales in all regions.
Eagle Cement shares first half 2020 results
11 August 2020Philippines: Eagle Cement recorded a net profit of US$26.5m in the first half of 2020, down by 61% year-on-year from US$68.0m. Sales also fell, by 44% to US$120m from US$214m.
Chief executive officer (CEO) Paul Ang said, “These are very difficult times but we remain confident that the economy will recover from this pandemic and emerge stronger. The government’s steady push for the completion of major infrastructure projects and the private sector’s readiness to bounce back offer encouraging signs for our company’s prospects moving forward.” He added, “More aggressive strategies in pricing and marketing will be undertaken in the remaining half of the year.”
Loma Negra publishes first half 2020 results
11 August 2020Argentina: Loma Negra’s first-half net profit declined by 68% year-on-year in 2020 to US$14.2m from US$44.4m in the 2019. Sales fell by 30% to US$215m from US$306m. The company said that business was “impacted by the increasing complexities of the Covid-19 pandemic,” but that a strong recovery in bagged cement sales beginning in May 2020 was an indicator of general growth to come in the second half of the year.
Shree Cement’s profit grows by 2.1% to US$49.6m
11 August 2020India: Shree Cement recorded a profit of US$49.6m between 1 April 2020 and 30 June 2020, up by 2.1% year-on-year from US$48.6m in the corresponding quarter of the previous financial year. Sales fell by 23% to US$311m from US$406m due to the impacts of the coronavirus lockdown, which ended during the quarter, on cement demand.
Australia: James Hardie’s operating profit in the three-month period ended 30 June 2020 was US$89.3m, down by 1% year-on-year from US$90.2m in the corresponding period of 2019. Earnings before interest and taxation (EBIT) were US$125m, consistent with the corresponding quarter of the previous fiscal year.
Chief executive officer (CEO) Jack Truong said, “In February 2019 we launched a global strategy to transform James Hardie from a big small company to a small big company capable of delivering growth above market with strong returns, consistently. This is our fifth consecutive quarter of delivering strong results in line with the core goal of that strategy: growth above market and strong returns. I am very pleased to note that not only do we remain on track with our transformation, but we are also accelerating our transformation during the coronavirus pandemic.”
Birla Corporation plans Durgapur grinding plant upgrade
10 August 2020India: Birla Corporation has shared details of its plans for a US$9.68m upgrade to its 1.3Mt/yr Durgapur, West Bengal grinding plant to expand the plant’s capacity to 1.5Mt/yr. The Times of India newspaper has reported that the company is planning to install a 0.2Mt/yr capacity vertical roller mill at the plant in response to “expected robust demand for premium slag-based cement in the eastern region.”
Birla Corporations recorded a profit of US$8.77m in the three months ended 31 June 2020, the first quarter of the Indian fiscal year, down by 53% year-on-year from US$18.8m in the corresponding period of 2019. Sales fell by 35% to US$163m from US$252m due to subdued demand during the coronavirus lockdown.
India: JK Lakshmi Cement’s profit in the three-month period ending 31 June 2020, the first quarter of the Indian fiscal year, was US$5.93m, up by 13% year-on-year from US$5.26m in the three months to 31 June 2019. Sales fell by 20% to US$111m from US$140m due to the impacts of the coronavirus outbreak.
Asia Cement China faces coronavirus, flooding and foreign imports in first half of 2020
07 August 2020China: Asia Cement China’s revenue dropped by 29% year-on-year to US$620m in the first half of 2020 from US$868m in the same period in 2019. Its cement and clinker sales volumes fell by 24.4% to 11.1Mt from 14.74Mt. Its profit for the period declined by 41% to US$131m from US$223m. The group said that in the central and downstream region of the Yangtze River the market peaked in May 2020 following coronavirus-related disruption. However, flooding then reduced demand. In Sichuan, coronavirus and foreign imports reduced the price of cement in the first quarter of 2020.