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US: Eagle Materials Inc has reported its financial results for its 2015 fiscal year that ended on 31 March 2015.
Earnings before interest and income taxes increased by 32% year-on-year to US$265m, reflecting improved sales volumes across nearly all business lines, with cement sales volumes setting an annual record of 4.8Mt. Net sales prices also strengthened across all businesses. Fourth quarter earnings before interest and income taxes increased by 31% to US$44.4m, as fourth quarter sales volumes improved across nearly all businesses, reflecting improving construction fundamentals in the US.
On 3 March 2015, Eagle entered into a definitive agreement with Holcim (US) to purchase its 600,000t/yr granulated ground blast furnace slag (GGBFS) plant in South Chicago. The purchase price of US$30m is subject to customary post-closing adjustments and will be funded from operating cashflow. The transaction is expected to close in the second quarter of its 2016 fiscal year and is conditioned upon the closing of the Lafarge-Holcim global merger.
Operating earnings from cement in 2015 were a record US$118m, an increase of 31% compared to 2014. Revenues from cement, including joint venture and intersegment sales, were US$489m for 2015, 12% higher than 2014. Operating earnings from cement were a fourth quarter record of US$21m, a 74% increase from the prior year quarter. Cement revenues for the quarter, including joint venture and intersegment revenues, totalled US$90.8m, 11% greater than the same quarter of its 2014 fiscal year. Cement sales volumes for the quarter grew by 3% year-on-year to 827,000t.
Philippines: Aboitiz Equity Ventures Inc has signed a deal with CRH, which when completed would allow it to join CRH in investing in the Philippine cement plants of Lafarge.
CRH had earlier agreed to buy for US$7.34bn in cement assets from Lafarge and Holcim Ltd, whose asset divestments are part of preconditions to winning regulatory approval for their merger. Both Lafarge and Holcim have cement assets in the Philippines. Aboitiz Equity plans to join CRH in acquiring a majority of the shares of Lafarge Republic Inc and the shares in Luzon Continental Land Corp and Lafarge Cement Services Philippines Inc, which constitute the majority of Lafarge's local cement operations.
Aboitiz Equity president Erramon Aboitiz said that if the deal with CRH is finalised, it would provide it with an investment that dovetails with its plan to invest in infrastructure development. The company is already in banking, property development, food manufacturing and power generation and distribution. "Venturing into infrastructure meets our growth criteria. We are very optimistic of the potential gains this new core business will bring to the Group amid the huge demand for infrastructure in the Philippines," said Aboitiz.
The conclusion of deal is subject to the successful completion of the merger between Lafarge and Holcim as well as approval by the boards of both CRH and Aboitiz Equity.
Egypt: Investments worth US$30bn in the coal industry are expected to be conducted within the next five years, according to Egypt's investment minister Ashraf Salman.
Salman said that there is 'full coordination' between the ministries of environment, electricity and investment to adhere to international environmental standards when using coal. Egypt's cabinet announced new rules on coal use in April 2015, which stipulate that coal imports can only take place after approval from the ministry of environment. The new rules are an amendment to a law on environmental affairs and allow the use of coal for cement, iron and steel, coke and aluminium production and in power plants.
Salman said that using coal as an energy source would decrease the dependency on natural gas as a primary energy source and petroleum products in steel and cement production. Despite the energy crisis, which has caused frequent and numerous power outages for years, the cabinet's approval of new coal use has caused controversy both within the government and outside.
Turkey: Akçansa Çimento has posted a 2015 first quarter net profit of Euro22.4m, down from Euro22.8m in the prior year period. Operating profit was Euro20.7m, compared to an operating profit of Euro22.7m in the same period of 2014. Pre-tax profit was Euro26.3m, compared to a pre-tax profit of Euro27.1m. Total revenue fell to Euro108m from Euro116m in 2014.
Saudi Arabia: The Chinese General Contractor Chengdu Design & Research Institute of Bldg Materials Industry Co Ltd in Chengdu has placed an order with Gebr. Pfeiffer SE for the supply of an MPS 3070 BC cement mill for Readymix in Saudi Arabia. The 1100kW drive power mill will grind 30t/hr of granulated blast-furnace slag and 46t/hr of Ordinary Portland Cement to a fineness of 4000cm²/g and 3600cm²/g, respectively. Delivery of the equipment is scheduled for 2015.