Emerging markets still target as weather affects quarry companies’ first quarter results

Harsh weather affected the first quarter results of many major quarry operators, but they are upbeat about the rest of 2013 and are still looking to the emerging markets.

674 HeidelbergCement reported revenue almost stable at €2.8 billion and that some 2.9 million tonnes of annual cement capacity was commissioned in Central India while its stake in Cement Australia increased from 25% to 50%, offering an extra 1 million tonnes.

The Q1 figure show that sales volumes of building materials were impaired by the long and cold winter in Europe and parts of North America and less working days, but there was growth in cement sales volumes in North America, Asia and Africa, which mostly compensated for weakness in Europe.  

“Business development in the first quarter has strengthened our conviction in our prospects for the 2013 financial year,” says chairman of the managing board Dr Bernd Scheifele.  

At 680 Holcim, the company increased its net income in Q1 despite the weaker construction activities in India, Morocco and France and the harsh winter in the northern hemisphere and the early Easter period which reduced the number of working days.  

Holcim says it anticipates an increase in sales of cement in 2013, but it will be challenging to reach the previous year’s levels in the aggregates and ready-mix concrete businesses. 725 Lafarge’s sales for the first quarter of 2013 are down 6% to €3,136 million (-4% like-for-like).

“The first quarter traditionally represents a small proportion of our results and is not indicative of full year trends. Our outlook remains unchanged and we expect to see cement demand growth in our markets of between 1 to 4% in 2013,” says Bruno Lafont, chairman and chief executive officer of Lafarge.

The company says emerging markets continue to be the main driver of demand and Lafarge will benefit from its well-balanced geographic spread of high quality assets.

643 Cemex’s consolidated net sales reached US$3.3 billion during the first quarter of 2013, a decrease of 5% versus the comparable period in 2012 while operating EBITDA decreased by 8% during the quarter to $521 million. Cemex says the decrease in consolidated net sales was due to fewer business days and lower volumes in the Northern Europe, Mexico, Mediterranean, and South, Central America and the Caribbean operations partially offset by higher prices, in local currency terms, in most of its regions.

Meanwhile, 723 CRH is heading for €500 million in acquisition spending in the year to date, and is targeting Russia and south-east Asia for further expansion. CRH says it has spent approximately €385 million on 15 acquisitions and investments, having agreed to buy Mykolaiv Cement in Ukraine for €96 million.