Global cement companies report solid results in 1H 2018

The world's top cement companies have reported an increase in sales for the first half of the year, with prospects for 2018 remaining overall positive.

This article originally appeared in CemWeek 46. Click on the image to read the full article

LafargeHolcim, Cemex, HeidelbergCement, Intercement, CRH and Dangote Cement all reported an increase in their cement sales in the first six months of the year, with overall global sales increasing across most regions. Expectations for the second half of the year are of continued growth in sales volumes and prices.

First half of the year is highly positive

LafargeHolcim, headquartered in Europe, reported a rise of 4.8 percent in global net sales due to a strong growth in most regions, with the exception of Middle East and Africa, where conditions remained difficult. This situation also reflected in Dangote Cement's results: despite the Nigeria-based manufacturer reporting an increase in both cement revenue and volumes, pan-African sales contracted by 3.9 percent from the first half of 2017, with production decreasing due to a shutdown of output in Tanzania.

HeidelbergCement's results for the first half of the year show an increase of three percent in cement sales volumes when compared to the first half of 2017, while aggregate sales rose by two percent. All global areas where the company is located contributed to growth in cement sales, while aggregates deliveries recorded increasing volumes across all areas with the exception of Africa-Eastern Mediterranean Basin.

InterCement is located in South America but the group has a global presence. The company has faced volatility in Latin American countries, but has seen growth across its Europe, Middle East and Africa assets. Overall sales revenue declined by 5.9 percent from the first half of 2018 to the first half of 2017, despite an increase of 0.2 percent in cement and clinker volumes.

Sales revenue for CRH during the first half of the year expanded only by one percent as construction markets continued to recover, despite significant weather disruption in Europe and North America during the first quarter of the year. In the Americas, the company saw growth in price and volumes, as the economic backdrop of the region improved.

Vicat's sales displayed a growth of 9.6 percent in sales, and the company's net debt declined strongly when compared to the first half of 2017, with most of the growth contribution coming from Europe, especially from France, where the company is located. Asian sales were also positive, as were US sales, with Asia's and France's contribution for the company's growth increasing during this period, whereas Europe's declined.

For Cementos Argos, consolidated cement volumes expanded by 0.9 percent year-on-year in the first half of the year, reflecting negative effects in the Colombian market, which were partially offset by positive developments in the United States and in the Caribbean (...)

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