Cement Americas

FAL 2018

Cement Americas provides comprehensive coverage of the North and South American cement markets from raw material extraction to delivery and tranportation to end user.

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10 CEMENT AMERICAS • Fall 2018 • www.cementamericas.com CEMENTSCOPE The competition concluded with four times the number of participants' projects compared to the 2017 competition, including the best solutions to today's global construction challenges. Finalists included New York City-based Knowify, which focuses on maximizing contractor productivity; Licify of Bogotá, Colombia, whose platform facilitates biddings; and Singapore-based SmartBuild Asia. Airsquire showcased a plan verification tool, while Egypt-based Handaz presented a tool to convert CAD plans into BIM models. Mexico-based Os City featured its crowd-sourced artificial intelligence platform, developed for smart cities. Both the jury and the event's visitors came from large con- struction, technology, innovation, and market analysis com- panies. They all agreed that, in addition to the finalists, all of the participants' projects provided Cemex Ventures with a constant flow of new business models, prioritizing the best solutions to the challenges of the construction industry. Mallet Leaves McInnis Cement The McInnis Cement board of direc- tors announced that Hervé Mallet, president and chief executive officer of McInnis since November 2016, is leaving the company. Chief Financial Officer Jean Moreau will assume the role of president and chief executive officer on an interim basis. Moreau joined McInnis in April 2017. He has significant experience in company, finance and operations management, and has held leadership posi- tions within private and public entities in the finance and operations management sectors. Moreau is recognized for mobilizing teams toward tangible and structured results and developing meaningful and last- ing relationships with stakeholders in a transparent and col- laborative manner. He holds a bachelor's degree in business administration from the HEC Business School in Montreal. Jean Moreau GCC Sales, EBITDA Up in Second Quarter Grupo Cementos de Chihuahua, S.A.B. de C.V. announced its results for the second quarter of 2018. The company delivered growing sales and EBITDA as well as a higher EBITDA margin, with solid operating results in both the United States and Mexico. GCC also completed the acquisi- tion of a cement plant in Montana, increasing its U.S. pro- duction capacity 11 percent; sold non-core, ready-mixed assets; and refinanced its bank debt, reducing interest expense significantly. For the first six months of 2018, GCC increased sales 11.4 percent and generated $115 million in EBITDA, with a mar- gin of 28.8 percent. Income from continuing operations was $40.0 million. Ready-mixed assets sold in Oklahoma and Arkansas were reclassified as discontinued operations, and generated an accounting loss of $40.6 million, mostly for the difference between book value and sale price. This resulted in a small net loss for GCC for the first half of the year. The company refinanced all its bank debt with a new $400 million, five-year term loan agreement; the lower interest rate is expected to generate savings of approximately $10 million per year. The banks are also providing a $50 million unsecured, revolving line of credit. "GCC's operating results continue the steady improvement in sales and margins that we've delivered since 2013," said Enrique Escalante, GCC's chief executive officer. "We also took a number of strategic actions that will help us achieve our long-term goals effectively. "The new cement plant in Three Forks, Mont., extends our market footprint and inte- grates well with our existing cement network. The asset sale removes some non-core assets that were a drag on our performance. The debt refinancing significantly lowers financial costs and further strengthens our capital structure and leverage profile. "Our first half operating performance and the M&A and financial transactions will help make 2018 another bench- mark year in GCC's transformation," Escalante concluded. In an upbeat second quarter earnings report, Cemex assured investors that asset prioritizing and debt reduction are top of mind. "With the objective of accelerating our path to investment grade and enhancing total shareholder return, we are announcing 'A Stronger Cemex,'" said Chief Executive Fernando Gonzalez. "During the next 2.5 years, we will work to optimize our portfolio by focusing on mar- kets with the greatest long-term growth potential and sell- Cemex Sets 30-Month Timetable for Asset Sales

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