
Displaying items by tag: demand
Bamburi Cement forecasts over 25% earnings drop in 2022
29 November 2022Kenya: Bamburi Cement says that it expects its full-year earnings before interest, taxation, depreciation and amortisation (EBITDA) to fall by 25% or more year-on-year during 2022. The Kenyan Wall Street newspaper has reported that the producer attributed the anticipated decline to increased energy costs and reduced cement demand.
During 2021, Bamburi Cement recorded a turnover of US$338m and a profit for the period of US$11.3m.
Breedon Group issues 10-month trading update
25 November 2022UK: Breedon Group says that it recorded 10-month sales of Euro1.38bn so far in 2022, up by 14% year-on-year from the same period in 2021. The producer completed scheduled maintenance on Kiln 2 of its Hope cement plant in the UK on time and on budget. Throughout the period, it noted 'supportive' trading conditions, with 'resilience' from the majority of its markets in its Great Britain and Ireland regions. In the year's second half to date, Breedon Group's four-month sales grew by 16% year-on-year. The group said that it is on track for record full-year earnings in 2022.
CEO Rob Wood said “Visibility in the trading landscape has been poor for some years now, for a variety of reasons. Against this constantly changing backdrop, our team’s commitment and resolve have delivered quality products and great service to our customers, regardless of the economic or political landscape. For this, we thank them. Their focus and determination in turn continues to deliver for all our stakeholders.” Wood continued “This time last year, we reminded our investors of the agile and entrepreneurial DNA that sets Breedon apart. Our rapid response to changing market conditions, local focus, vertically-integrated business model and disciplined financial framework will again enable us to deliver record results in 2022."
Vicem awards 6Mt cement and clinker import contract in Philippines
24 November 2022Philippines: Vietnam Cement Industry Corporation (Vicem) has awarded a three-year, 6Mt cement and clinker import contract to Fenix (CEZA) International and Gold Falcon Trading Corp. The agreement will have effect from 2023 until 2025. Việt Nam News has reported that Vietnam's Minister of Construction, Nguyen Thanh Nghi, and National Assembly chair, Vuong Dinh Hue, attended the contract's signing in Manila.
Declining demand, primarily from China, has diminished Vietnam's cement exports over past months. Vietnam produced 130Mt of cement in 2021, but consumed just 65Mt.
CRH increases nine-month sales and earnings
22 November 2022Ireland: CRH's consolidated sales were US$24.4bn during the first nine months of 2022, up by 13% year-on-year from nine-month 2021 levels. Regional sales grew by 18% in the group's America's Materials business, with a 12% rise in cement sales there, despite a drop in volumes. Elsewhere, for the Europe Materials business, sales remained level year-on-year, and higher pricing offset costs growths in all key markets except Asia and Europe West. The producer's consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 14% to US$4.2bn.
For the full year 2022, CRH expects to record a profit before tax greater than that of US$3.1bn recorded in 2021.
Chief executive officer Albert Manifold said ‘‘Notwithstanding a challenging and volatile cost environment, I am pleased to report further growth in sales, EBITDA and margin during the first nine months of the year. This performance reflects the resilience of our business and the benefits of our integrated and sustainable solutions strategy. The strength of our balance sheet, combined with our relentless focus on disciplined capital allocation, provides further opportunities to create value for all our stakeholders." Manifold added "Looking ahead to the remainder of 2022, we expect to deliver full-year EBITDA of approximately US$5.5bn."
Pakistan Association of Builders and Developers alleges cement industry cartelisation
22 November 2022Pakistan: The Association of Builders and Developers (ABAD) has accused cement producers of cartelisation and called on the government to take 'stern action' following a rise in cement prices. The Business Recorder newspaper has reported that builders believe that the rise does not reflect trends in local raw materials and imported coal prices. Additionally, it comes in spite of a drop in cement demand.
Thailand: Siam Cement Group (SCG) recorded total national cement consumption growth of 6% year-on-year throughout the first nine months of 2022. The producer partly attributed the comparatively high figure to nationwide building site closures during the first nine months of 2021. In its management discussion and analysis of its third quarter 2022 results, the group noted commercial construction as the main driver of demand growth. Its cement consumption rose by 8% year-on-year, cement use by infrastructure projects grew by 6% and cement demand for residential projects rose by 5%.
Public construction supplies 40% of Thai domestic cement demand, with commercial and residential construction together accounting for the remaining 60%.
SCG previously reported that Thai cement demand had dropped by 5% year-on-year during the first half of 2022.
Bangladesh: Crown Cement has estimated the total cost of cement capacity currently unused in Bangladesh at US$1.46bn. The figure is even higher when maintenance costs are included, according to Crown Cement's chief advisor Masud Khan. Over the past 15 years, national cement capacity has nearly quadrupled to 83.3Mt/yr from 22.4Mt/yr, while demand has merely doubled to 46.7Mt/yr from 22.8Mt/yr. Khan estimated the cost per 1Mt/yr of new Bangladeshi cement capacity over the period at US$40m.
Khan said that producers continue to anticipate an acceleration in local cement consumption growth in the medium-term future. Reflecting on the situation up to the end of 2022, he said "They thought if they were not prepared for the growing demand, they would lose their market share. That was why they continued expansion, bearing the burden of excess capacity." Khan forecast a further decline in the industry's capacity utilisation if gross domestic product undergoes a forecast drop during the 2023 financial year, impacting on producers' results for the year.
Holcim New Zealand takes receipt of Christian Pfeiffer ball mill
04 November 2022New Zealand: Holcim New Zealand says that it has received a mill for use in its upcoming Auckland cement replacement products import and distribution facility. The company opted for a Christian Pfeiffer ball mill for the project.
Holcim New Zealand says that alternative materials imported via the Auckland facility will eliminate 100,000t/yr of cement from New Zealand's 1.6Mt/yr consumption. The company expects that this will cut 78,000t/yr of CO2 emissions.
Dalmia Bharat increases income as earnings drop in first half of 2023 financial year
03 November 2022India: Dalmia Bharat sold 12Mt of cement during the first half of its 2023 financial year, up by 20% year-on-year from 10Mt in the first half of the 2022 financial year. Its income was US$757m, up by 21% year-on-year from US$624m. Meanwhile, the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 28% to US$116m from US$161m. The company noted the growth effects of 'fuel price corrections' during the second quarter of 2022, which it expects to increase its profitability during the second half of year.
Managing director and CEO Punit Dalmia said “We are pleased with the performance of the first half of this year despite the intense inflationary environment, and are confident that we will be among the best in the industry, leaving the bad times behind. While the geopolitical turmoil continues, we are confident in the resilience of the Indian economy, which is further cementing its position at the centre of global growth and consumption.” Dalmia continued “In view of the government's continued momentum in the infrastructure sector, driven by the revitalisation of the housing sector, we expect the demand for cement to grow rapidly. Looking ahead, we will remain focused on our capacity expansion progress.”
Dalmia Bharat's 14 integrated cement and grinding plants span 10 Indian states and have a capacity of 37Mt/yr, India's fourth largest.
US: Martin Marietta Materials recorded revenues of US$4.68bn throughout the first nine months of 2022, up by 20% year-on-year from US$3.92bn. Cement sales contributed US$455m, 9.7% of total revenues, up by 27% from US$358m. Cost of revenues rose by 4% for the group, to US$3.62bn from US$2.92bn. Nonetheless, Martin Marietta Materials successfully recorded nine-month net earnings growth of 25% year-on-year, to US$638m from US$546m.
Chair and CEO Ward Nye said that double-digit price growth drove the company's record profitability. He said "Importantly, we expect a return to expanding margins in the fourth quarter of 2022, as the compounding effect of multiple pricing actions throughout the year offsets continued inflationary pressure and a slowdown in single-family residential construction. Martin Marietta's strategic coast-to-coast footprint is well positioned for long-term growth, driven by favourable population migration trends, housing shortages in our markets and a long-term federal highway bill complemented by healthy Department of Transportation budgets in the company's key states. Near-term, we expect affordability-driven headwinds in the single-family residential end market will be offset by a significant acceleration in public infrastructure investment and continued strength in large-scale energy, domestic manufacturing and multi-family residential projects."