Global Cement News

Italy: Cementir Holding’s net profit rose to Euro77m in the first half of 2018, a massive 400.5% increase compared to just Euro15.5m in the first half of 2017. Revenues increased by 5.7% to Euro588.5m from Euro556.9m in the first half of 2017. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 9.5% to Euro96m from Euro87.7m in the first half of 2017. The impact of the devaluation of the main foreign currencies against the Euro on the gross operating margin had a negative effect of Euro7.9m. At constant exchange rates, EBITDA in 2017 would have amounted to Euro103.9m.

Chairman and CEO Francesco Caltagirone Jr explained that the results were up compared to the first half of 2017 also on a like-for-like basis, without the effect of the acquisition of Lehigh White Cement Company in the United States. The improvement in the gross operating margins in Turkey, Belgium and China, offset the worsening results in Egypt, Norway, Malaysia and Denmark. The results were also negatively affected the unfavourable winter weather conditions in the first quarter in Scandinavia and Belgium, as well as the earlier timing of Ramadan in Turkey and Egypt.

India: Credit rating agency ICRA has said that the demand for cement in India is likely to grow by around 6% in the current financial year, which ends on 31 March 2019. In its latest report on the sector, it said this would be due to a pick-up in the affordable and rural housing segment and infrastructure, primarily in road and irrigation projects.

Philippines: Holcim Philippines, part of LafargeHolcim saw a 25% in its first half net profit to US$30.0m due to stiff competition and higher operating costs. In the second quarter its profit fell by about 25% year-on-year to US$16.3m. However, second quarter net sales improved by 18.5% year-on-year to US$189.5m.

"Our second quarter performance showed encouraging trends, which translated into significant sales growth on the back of strong building activity,” said Holcim Philippines’ President John Still. “However, rising costs of fuel, power and distribution combined with the Peso's depreciation against the US Dollar and tighter competition continued to impact our business performance in the second quarter.” Still was optimistic that the second half of 2018 would offer Holcim Philippines the opportunity to recover some of the lost ground, following the improvement between the first and second quarter and the underlying ‘robust building activity’ in the country.

Vietnam: Vietnamese cement exports in the first seven months of 2017 reached an estimated 17.8Mt, a year-on-year increase of 55% and close to the 18-19Mt target for the entire year. Exports of cement in July 2018 alone were estimated at 2.1Mt, an increase of 43% over July 2017.

During the seven month period, consumption of cement from Vietnamese producers in both domestic and export markets was estimated at 58.3Mt, equal to 69% of the year’s target 83-85Mt.

Pakistan: DG Khan Cement, part of Nishat Group, has announced the official opening of its recently commissioned Hub plant in Balochistan, Pakistan. The company claims that the 9000t/day (2.9Mt/yr) plant is ‘Asia's most modern’ and is constructed entirely from European equipment. FLSmidth was the main supplier of the pyroprocessing equipment, with Loesche supplying three complete grinding plants, Haver & Boecker supplying packaging solutions and IBAU Hamburg supplying silos and loading technology. The plant was built in just 30 months.

Global Cement visited the Hub project when it was under construction in the March 2018 issue.