Skip to main content

PPC earnings slump

Published by
World Cement,


Bloomberg are reporting that Darryll Castle, the Chief Executive Officer of PPC, has stated that South Africa’s cement industry would benefit from consolidation because there are too many players for the size of the market.

PPC earnings slump

The company is “keeping an an eye on the whole industry,” Castle announced in an interview on 16 November, after declining to comment on whether PPC is in talks with rival AfriSam Group Pty Ltd. The two Johannesburg-based companies have revived discussions about a merger almost two years after talks were abandoned.

“There’s fairly clear rules and regulations around when you need to announce things, and there’s nothing to announce,” Castle said. “In the longer term there’s no doubt that there needs to be some kind of consolidation in the industry and you can be sure that as PPC it would benefit us because we are the big player.”

South Africa’s construction industry and infrastructure spending is under pressure as Africa’s most industrialised economy heads for its weakest annual growth since 2009. There are five producers operating in the country, and consolidation would help cut costs and improve efficiencies for the remaining competitors.

A combination of PPC and AfriSam is likely to have the support of the continent’s largest fund manager and AfriSam’s controlling shareholder, the Public Investment Corporation.

PPC is focusing on reducing costs to support its profit margin while it completes projects in South Africa, Ethiopia and the Democratic Republic of Congo, Castle said. The company expects cement prices to bottom in its home market and gradually increase in 2017.

Read the article online at: https://www.worldcement.com/africa-middle-east/18112016/ppc-earnings-slump/

You might also like

 KHD

KHD Technical Webinar Series

Over the coming weeks, World Cement will be hosting a series of technical webinar presentations from KHD! Each presentation will be led by industry experts and provide a detailed discussion of KHD’s product offerings to the cement industry.

Find out more and register for the series »

 

Martin Marietta increases quarterly cash dividend

The company has announced that its Board of Directors approved a 4% increase in its quarterly cash dividend, raising it from US$0.55 per share to US$0.57 per share on the company’s outstanding common stock.

 
 

Embed article link: (copy the HTML code below):


 

World Cement is not responsible for the content of external internet sites.