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FLSmidth posts Q1 profit drop 22 May 2013
Denmark: FLSmidth has reported a 86% drop in its profit year-on-year to Euro5.77m for the first quarter of 2013, compared to Euro32.3m in 2012. The Danish engineering group blamed increased customer hesitation, market uncertainty and a lack of efficiency.
Its revenue increased by 17% to Euro758m in the first quarter of 2013 from Euro648m in 2012. However, order intake fell by 22% to Euro675m from Euro862m. Fewer large orders were signed in the fist quarter of 2013, while unannounced orders were stable. Earnings before interest, taxes, depreciation and amortisation fell by 28% to Euro43.9m from Euro61.2m.
In its interim results FLSmidth stated that corrective actions were being developed and would be publicised in its second quarter report along with measures from the new CEO.
Saudi ports ready for more cement imports 22 May 2013
Saudi Arabia: Commercial ports in Saudi Arabia are ready to process more cement and clinker, according to a Ports Authority (PA) spokesman quoted by Arab News. The move supports a command issued by the King of the country in April 2013 that ordered 10Mt of cement to cope with local shortage.
The PA has set up 17 docking stations for handling and storage of cement and clinker. Jeddah, Dammam and Jubail have four stations each. Yanbu, Dhuba and Jazan are equipped with one site each. The authority has agreed with Saudi Arabia-based Southern Province Cement Company to import cement and clinker through the Jazan Port, as well as with Yanbu Cement Company for clinker imports. All the ports are required to support the cement companies in providing enough space for storage and loading.
Indocement losing market share in Q1 22 May 2013
Indonesia: Indocement Tunggal Prakarsa, a leading Indonesian cement producer, saw its market share fall from 32.5% to 30.6% in the first three months of 2013. A report by the Jakarta Globe attributed the decline due to other cement producers raising their production levels to match growing infrastructure development programs in the country. However, Indocement said that it actually believed in protecting margins rather than increasing its sales.
The HeidelbergCement subsidiary saw its domestic sales increase year-on-year by 2.1% to 4.2Mt for the first three months of 2013. However, the Indonesian cement industry as a whole saw sales volumes of cement rise by 8.6% to 13.6Mt for the quarter.
"Our competitors have managed to add to their cement production capacity, thus resulting in our sales volume being not quite as high as expected," said Indocement's Finance Director Tju Lie Sukanto.
Russia: The Federal Antimonopoly Service (FAS) has rejected a claim against Pikalyovsky Cement over an application submitted by BaselCement-Pikalyovo. The FAS dismissed the claim because it saw no violations of the law.
BaselCement-Pikalyovo, located in Pikalyovo in the Leningrad region, halted production in 2009 due to a shortage of raw materials. The situation then was settled by the then Prime Minister Vladimir Putin when a supplies treaty was signed.
In January 2013 BaselCement-Pikalyovo applied to the FAS with a claim accusing Pikalyovsky Cement of breaking the antimonopoly law. Allegedly Pikalyovsky Cement had imposed low prices on BaselCement-Pikalyovo for the supply of nepheline slime. BaselCement-Pikalyovo later said that Pikalyovsky Cement revoked its order for nepheline in January 2013 and that this threatened to halt the operations at BaselCement-Pikalyovo since the cement producer is its sole customer.
Tanga Cement targets Zanzibar cement smugglers 22 May 2013
Tanzania: Tanga Cement has accused cement imports into Tanzania via Zanzibar of undermining the prospects of local producers and dodging tax. Managing Director Erik Westerberg made the comments at Tanga Cement's 2013 annual general meeting. A report covering the meeting by All Africa Global Media placed the tax loss at about US$9.2m/yr.
According to Westerberg, cement consumption in the semi-autonomous province of Zanzibar appeared to be three or four times that of mainland Tanzania despite the absence of any major infrastructure or construction projects. Westerberg appealed to the government to take action and protect mainland cement producers from smugglers along the Indian Ocean coast.