Global Cement News

Argentina: Loma Negra, Argentina’s leading cement producer, saw its net revenue decline by 2% to US$165m in the second quarter of 2019, with its earnings before interest, tax, depreciation and amortisation (EBITDA) rising by 7.1% to US$44m. This was driven by the domestic cement, lime and masonry sector.

Sergio Faifman, CEO of Loma Negra, said, “We are pleased to announce another set of solid results, our business continues to deliver adjusted EBITDA margin expansion based on our constant focus in profitability and cost enhancement initiatives. In this sense, during this quarter we adjusted our production-footprint by reconverting the Barker facility to a grinding and distribution centre, this initiative will let us be a more efficient and agile company. Considering the Argentine context, our business continues to deliver both adjusted EBITDA margin expansion and Net income growth.”

India: UltraTech Cement has reported a 91% rise in its profit for the first quarter of the 2020 fiscal year, to US$170m from US$89m in the first quarter of the 2019 fiscal year. Its net sales were up by 15% to US$1.49bn, despite flat sales volumes. These were 2% higher at 17.86Mt, compared to 17.48Mt a year earlier.

Australia: James Hardie Industries, the world's largest fibre cement producer, highlighted the potential for higher earnings in the 2020 fiscal year, citing an improved performance for its North American fibre cement segment.

The company said it expected full-year adjusted net operating profit to be US$221-248m, compared with US$204m a year earlier.

"Our North America Fiber Cement segment delivered very good volume growth in a down market while generating an earnings before interest and tax (EBIT) margin at the top end of our target range," said CEO Jack Truong in a statement.

India: UltraTech Cement’s net sales grew by 15% year-on-year to US$1.42bn in the quarter to 30 June 2019 from US$1.23bn in the same period in 2018. Its profit before interest, depreciation and tax rose by 61% to US$402m from US$250m. Its local sales volumes increased by 3% to 17.3Mt from 16.8Mt but exports fell by 7% to 0.6Mt from 0.65Mt.

It said that it had fully integrated its UltraTech Nathdwara Cement subsidiary with its systems and processes. The plants it acquired from Jaiprakash Associations in June 2017 were operating in line with its existing plants and had achieved break-even profit before tax during the reporting quarter. The commissioning of its 4Mt/yr Bara grinding plant in Madhya Pradesh has been delayed to late 2019.

India: India Cements is planning to spend up to US$200m on a new integrated plant in Madhya Pradesh and a grinding unit near Allahabad in Uttar Pradesh. The move will increase its production capacity to 20Mt/yr by 2023 from 16Mt/yr at present, according to the Hindu newspaper. N Srinivasan, Vice-Chairman and managing director of India Cements said that the company was in the process of buying land in Madhya Pradesh and that it hoped to complete this by late 2019. The company holds mining lease for more than 100Mt of limestone following its acquisition of Springway Mining in Madhya Pradesh in 2018.