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Holcim’s statement on Eurocement proposal 16 April 2015
Europe: On 14 April 2015 Holcim announced the names of the candidates proposed to join the board of directors of LafargeHolcim after the merger. The board will comprise 14 members, seven each designated by Holcim and Lafarge.
After the announcement, Holcim received a proposal in writing of its 10.8% shareholder Eurocement to elect Filaret Galchev to the board of directors of LafargeHolcim. According to Holcim, the proposal came too late to be considered by the board of directors of Holcim for inclusion into the agenda of the Extraordinary General Meeting on 8 May 2015.
ACC’s net profit hit by low demand 15 April 2015
India: ACC has reported a 40.8% drop in its consolidated net profit to US$37.9m for the quarter that ended on 31 March 2015 owing to slack demand in the domestic market. It had posted net profit of US$64.1m during the same period of 2014.
"With slack demand for cement from infrastructure and the general construction sector in the January - March quarter, the overall cement sales volumes registered a decline compared with the corresponding period of 2014," said the company in a statement. "The overall operating costs for cement business registered an increase of 3.6% year-on-year."
The company's total consolidated turnover for the quarter saw a 2.75% decline to US$462m compared with US$475m in the same period of 2014. Sales volumes declined to 5.82Mt as against 6.48Mt in 2014. Its total income from operations increased by 1.75% year-on-year to US$493m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 18.3% to US$79.7m. "EBITDA for the quarter reflects continued margin improvements," said ACC's statement. During the quarter, ACC also received US$22.4m as an incentive from the Jharkhand government following a high court order, which helped push up its EBITDA.
ACC is hopeful that cement demand will improve in the next two quarters and said that its focus will continue to be on performance. "We see a modest but steady revival for the Indian economy in 2015. This will have a positive impact on infrastructure, housing and construction sectors and will increase the demand for cement," said ACC chairman NS Sekhsaria. The company is now looking forward to commission its clinker plant and allied grinding plant at its Jamul plant in Durg, Chhattisgarh by the end of 2015.
Oman Cement’s first quarter net profit rises by 3.7% 15 April 2015
Oman: Oman Cement has reported a 3.7% rise in its net profit for the first quarter of 2015. It made a net profit of US$9.95m in three months that ended on 31 March 2015, up from US$9.61m in the corresponding period of 2014. Oman Cement's first quarter revenue rose by 10.6% to US$41.4m.
CRH sells 45% stake in Doras for Euro37m 15 April 2015
France: CRH has sold its stake in a French joint venture company called Doras to its partner, Samse, for just under Euro37m. Doras operates specialist and general builders merchants and is particularly prominent in the Burgundy and Franche Comté regions in eastern France. CRH has now sold its 45% stake in the company to the Samse Group, which already holds a 55% share in the firm, for Euro36.6m. The move was recently given the green light by the Competition Authority.
CMA seeks import duty on cement 15 April 2015
India: The Cement Manufacturers Association (CMA) is seeking a tax on cement imports to provide a level playing field to the industry.
In a memorandum to various Union Ministries on 10 April 2015, the CMA said that cement was allowed to be imported into India at zero import duty, whereas all the major raw materials required to make cement such as limestone, gypsum, pet coke and packing bags attract import duties.
"To provide a level playing field, the basic customs duty should be levied on imports of cement into India and import duties on goods required for the manufacture of cement be abolished and freely allowed without levy of duty," said the CMA. The CMA also said that there is a case for rationalisation of domestic taxes on the cement sector in order to make it competitive.
"The value-added tax (VAT) on steel is only 4% whereas it is 12.5 – 15% on cement and clinker in different states. Thus there is a need to slash the tax burden by 20 – 25% through rationalisation and lowering of the excise duty to 6 – 8% without the addition of any specific duty," said the CMA. It also demanded that cement be stipulated as 'declared goods' to put it on equal footing with goods like coal and steel and an element of royalty be included in the calculation of drawback rates.