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China cement news round-up 01 May 2013
Regions: Central China's Hubei Province produced 11.3Mt of cement in January and February 2013, a year-on-year decline of 13.8%. However, clinker production rose by 1.98% to 6.73Mt.
Cement producers in the eastern province of Zhejiang produced 115Mt of cement and 56.7Mt of clinker in 2012, a year-on-year decrease of 4.8% and 5.9% respectively.
Companies: Sinoma International Engineering Co recorded an operating-revenue of US$710m in the first quarter of 2013, a year-on-year decline of 20.4%. The company's net profit slid by 12% to US$38.3m.
Zhejiang Jianfeng Group recorded an operating-revenue of US$267m in 2012, a year-on-year increase of 0.26%. Net profit fell by 39.2% to US$26.5m.
Lafarge India talking to US$240m investor 30 April 2013
India: Baring Asia is in advanced talks with Lafarge India to invest around US$240m in the cement producer, according to private sources quoted by Reuters. Private equity firm Baring Asia is negotiating the investment for a minority stake.
Lafarge has four cement plants in India with a combined production capacity of 7.75Mt/yr. It has been selling assets around the world as part of an on-going debt reduction programme. Recent sales include that of a Ukrainian plant to CRH in late April 2013, the sale of a portfolio of its UK operations to Mittal Investments for US$439m in November 2012 and the sale of two of Lafarge's cement plants in North America to Eagle Materials for US$446m in September 2012.
Cemex limits damage with price increases 29 April 2013
Mexico: Multinational cement and building materials producer Cemex has announced that its consolidated net sales reached US$3.3bn during the first quarter of 2013, a decrease of 5% versus the comparable period in 2012. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 8% during the quarter to US$521m compared to the same period in 2012.
Cemex said that the decrease in consolidated net sales was due to fewer business days and lower volumes in the Northern Europe, Mexico, the Mediterranean and South, Central America and the Caribbean operations partially offset by higher prices, in local currency terms, in most of its regions. Its operating earnings before other expenses remained flat at US$239m and its operation. Adjusting for fewer business the extraordinary favourable effect in 2012 resulting from the change of a pension plan in its Northern Europe region, net sales declined by 2% and operating EBITDA increased by 9% during the first quarter of 2013.
Speaking about the results Fernando A González, Cemex's executive vice president of finance and administration, said, "We are pleased with the operating EBITDA growth and operating EBITDA margin expansion during the quarter on a comparable basis. This is the seventh consecutive quarter with year-over-year improvement in operating EBITDA."
"We are also seeing good results from the initial stages of our value-before-volume strategy as evidenced by the sequential increase in our consolidated prices for cement ready-mix and aggregates, in both, local-currency and US$ terms."
In Mexico, net sales decreased by 7% in the first quarter of 2013 to US$780m, compared with US$838m in the first quarter of 2012. Operating EBITDA decreased by 11% to US$263m.
Cemex's operations in the United States reported net sales of US$736m in the first quarter of 2013, up by 8% in the same period of 2012. Operating EBITDA increased to US$19m, versus the loss of US$24m in the same quarter of 2012.
In Northern Europe, net sales for the first quarter of 2013 decreased by 13% to US$756m, compared with US$873m in the first quarter of 2012. Operating EBITDA, made a loss of US$17m, down from a gain of US$55m for the same period of 2012.
First-quarter net sales in the economically-troubled Mediterranean region were US$347m, 8% lower compared with US$377m during the first quarter of 2012. Operating EBITDA decreased by 25% to US$73m for the quarter versus the same period in 2012.
Cemex's operations in South, Central America and the Caribbean reported net sales of US$497m during the first quarter of 2013, representing a decrease of 5% over the same period of 2012. Operating EBITDA for this region increased by 5% to US$188m in the first quarter of 2013, from US$178m in the first quarter of 2012.
Finally, operations in Asia reported an 11% increase in net sales for the first quarter of 2013, to US$142m. Operating EBITDA for the quarter was US$24m, up by 93% from the same period in 2012.
Lafarge to sell Ukraine plant to CRH 26 April 2013
Ukraine: France's Lafarge has announced the sale of its cement activities in Ukraine to Ireland's CRH for an enterprise value of Euro96m. The deal comprises one wet process cement plant located in the Lviv region, in the western part of the country. The Global Cement Directory 2013 lists the plant's capacity as 1.7Mt/yr.
The transaction, which is expected to close before the end of 2013, is subject to the relevant Ukrainian authorities' approval. Lafarge retains a presence in Ukraine through three aggregates quarries serving the Ukrainian, Russian and Polish markets.
Qatar National Cement sees marginal improvements 26 April 2013
Qatar: Qatar National Cement Company (QNCC) has reported a marginal increase in its net profit to US$308m in the first three months of 2013 despite flat total income. Sales rose by 1% to US$694m while gross profit dipped by 2% to US$317m. Total income was flat at US$354m.