Votorantim’s Brazilian business drags down results
Published by Jonathan Rowland,
Editor
World Cement,
Votorantim reported a year-on-year fall in earnings in 3Q17 on the back of poor performance from the company’s Brazilian business. Other areas faired more positively but failed to offset the weakness in the company’s home market.
Earnings stood at BRL521 million in 3Q17, a 27.1% drop on the same period last year, driven by a 45.4% fall in like-for-like earnings in Brazil. The weakness in the Brazilian market was exacerbated by a BRL143 million tax adjustment.
In contrast, Votorantim’s North American reported a 12.7% increase in earnings on strong market positioning and operational efficiency in both Canada and the UK. In Europe, Asia and Africa, Votorantim reported a 13.7% increase in earnings on the back of strong results in Morocco, higher sales volumes in Turkey, and an upturn in India and China.
The stand-out performance came in the company’s Latin American business, where earnings rose by 63.8% year on year due to the ramp-up and better-than-expected operational performance of its Bolivian plant. Sales volumes from the plant were “considerably higher,” the company said “due to an increased local market share in Bolivia, and exports to Argentina”.
Exports from Votorantim’s Uruguayan plant also saw increased exports to Argentine.
Read the article online at: https://www.worldcement.com/africa-middle-east/17112017/votorantims-brazilian-business-drags-down-results/
You might also like
The World Cement Podcast - What's next for US Cement?
In this episode of the World Cement Podcast, we are joined by Mike Ireland, President and CEO of the ACA or American Cement Association. Listen in as Mike and David dive into a range of topics, including the ACA’s recent rebranding efforts, decarbonisation, policy and legislation, and the impact of AI on cement demand.
Tune in to the World Cement Podcast on your favourite podcast app today.
