Displaying items by tag: costs

Austria: Refractory producer RHI Magnesita increased its consolidated sales by 33% year-on-year to Euro1.6bn in the first half of 2022 from Euro1.2bn in the first half of 2021. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 37% to Euro245m from Euro 179m. Profit before tax rose by 14% year-on-year to Euro142m from Euro125m.

Looking forward to its full-year 2022 results, RHI Magnesita forecast unchanged earnings, based on ‘strong demand’ in the year to date and its order book for the second half of the year. It said that inflation and monetary policy responses, labour and energy market tightness and on-going supply chain disruption have impacted its global growth outlook. It will rely on price rises to maintain its margins, as well as on strategic cost saving initiatives.

Chief executive officer Stefan Borgas said “In the first half of 2022 we further demonstrated the benefits of prioritising customer deliveries in an environment of continued supply chain volatility. Our investment in inventories to ensure our customers remain supplied with essential refractories has underlined the importance of supply reliability and has enabled us to simultaneously increase prices and gain market share. Following major investments in our production network, a reduction in our selling, general and administrative expenses and progress on our sales strategies, the group is in a strong position to maintain its leadership position in the refractory industry and to navigate future challenges.”

Spain: Cementos Molins increased its first-half 2022 consolidated sales by 35% year-on-year to Euro608m and its earnings before interest, taxation, depreciation and amortisation (EBITDA) by 4% to Euro132m. The group said that its implementation of operational efficiency plans successfully offset cost inflation. Its net profit was Euro57m, in line with that in the first half of 2021.

Chief executive officer Julio Rodríguez said "Despite the markets growth slowdown and the uncertain global context, at Cementos Molins we continue to move confidently towards achieving the objectives of our strategic plan 2020-2023.”

France: Despite a 12% year-on-year increase in consolidated sales to Euro1.75bn from Euro1.56bn, Vicat recorded a net income drop of 17% to Euro77.8m from Euro93.5m in the first half of 2022. The group attributed the decline to increased global energy costs and to non-recurring industrial costs in France, India and the US. These costs included investments in exceptional maintenance at its Montalieu cement plant in France and a debottlenecking capacity expansion at its Kalburgi, India, cement plant. Geopolitical events also impacted the profitability of the producer’s business in Mali. Group cement sales rose by 17% year-on-year to Euro1.1bn.

Chair and chief executive officer Guy Sidos said “The basis for comparison in the first six months of 2022 was unfavourably high given the sales and profitability levels achieved in the same period of the previous year.”

India: JK Lakshmi Cement recorded consolidated sales of US$209m in the first quarter of the 2023 financial year, up by 25% year-on-year from US$167m in the first quarter of the 2022 financial year. The group’s net profit was US$14.5m, down by 15% from US$17.2m.

ZeeBiz News has reported that the producer experienced a 29% year-on-year increase in costs to US$188m, which it attributed to rising global fossil fuel prices.

Germany: HeidelbergCement’s sales revenue rose by 11% year-on-year to Euro9.95bn in the first half of 2022 from Euro8.94bn in the same period in 2021. Its cement and clinker sales volumes dropped by 4.8% to 58.8Mt from 61.8Mt, while its profit for the period attributable to shareholders dropped by 28% to Euro542m from Euro755m. During the reporting period, the producer reduced its net debt by 8.9% to Euro6.79bn from Euro7.45bn.

Chair Dominik von Achten said "The first half of 2022 was characterised by the strong increase in energy and raw material prices. In this persistently difficult market environment we were again able to significantly increase our revenue.” He continued, “In view of the unprecedented increase in energy prices in recent weeks, the second half of the year remains challenging. For the full year, we continue to expect a significant increase in revenue, while for the result from current operations we now anticipate a slight decline on a comparable basis compared to the strong previous year.”

Greece: Titan Cement’s consolidated sales rose by 26% year-on-year to Euro1.04bn in the first half of 2022 from Euro821m in the first half of 2021. The group’s US sales rose by 23% to Euro595m from Euro482m. Its Southeastern Europe sales grew by 28% to Euro169m, while its Greece and Western Europe sales grew by 21% to Euro158m and its Eastern Mediterranean sales grew by 49% to Euro113m. The producer also holds a stake in Brazil-based Cimento Apodi, which recorded sales growth of 38% to Euro50.5m. Titan Cement’s earnings before interest, taxation, depreciation and amortisation (EBITDA) amounted to Euro139m, down by 2.5% from Euro143m. The producer expects cost pressures to persist throughout 2022. It says that its focus is on safeguarding its production, protecting its margins, improving its efficiencies and continuing with its carbon mitigation strategies.

Titan Cement’s CO₂ emissions per tonne of cementitious product fell by 5.6% year-on-year, driven by a reduction in the clinker factor.

Italy: Cementir Holding’s sales rose by 22% year-on-year to Euro811m in the first half of 2022 from Euro665m in the first half of 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 7.7% to Euro144m from Euro134m. Its net profit grew by 39% to Euro66.6m from Euro47.9m. During the half year the group sold 5.41Mt of cement and clinker, down by 0.8% from 5.46Mt. The group attributed this to local sales declines in China, Denmark and Turkey.

Chair and chief executive officer Francesco Caltagirone said, “The first-half 2022 results are aligned with our forecasts. Despite the severe geopolitical tensions and the significant increase in raw materials, energy and logistic costs, the group is showing great resilience thanks to an increased geographical and product diversification and a focused cost management.”

India: UltraTech Cement increased its sales by 28% year-on-year to US$1.9bn in the first quarter of its 2023 financial year, from US$1.48bn in the first quarter of the 2022 financial year. The company’s net profit during the quarter was US$198m, down by 7% year-on-year from US$213m in the first quarter of the 2022 financial year.

Dow Jones Institutional News has reported that UltraTech Cement recorded increased cement demand in June 2022 and forecasts full-year year-on-year consumption growth nationally. The producer said that state-backed investment in infrastructure and industrial development will support high housing demand momentum, while pressure will remain on its profitability due to high costs.

India: Sagar Cement’s net sales were US$69.8m in the first quarter of the 2023 Indian financial year, up by 42% year-on-year from US$49.1m in the first quarter of the 2022 financial year. The quarter, which ended on 30 June 2022, saw an 82% year-on-year increase in costs to US$72.7m from US$40.1m. As a result, the company recorded a net loss for the quarter of US$1.64m, compared to a net profit of US$6.08m in the first quarter of the 2022 financial year.

India: ACC recorded sales of US$559m in the first quarter of the 2023 financial year. The figure corresponds to a 15% year-on-year rise from US$486m in the first quarter of the 2022 financial year. The company's cement sales during the quarter rose by 13% to US$520m from US$460m. Its net profit was US$28.5m, down by 60% year-on-year.

Press Trust of India News has reported that ACC attributed the profit drop to 'rising global fuel costs and related inflationary impacts.' It said that waste heat recovery (WHR) installations at its Jamul, Kymore and Ametha cement plants will increase its renewable energy share to 15%, 'further accelerating the cost reduction journey.'