Votorantim Cimentos reported a slight decrease in sales in 2017, as Brazilian cement demand continued to drop – although the pace of decline slowed compared to the previous two years. There was, however, more positive performances from the company’s North American (VCNA) and Europe, Asia & Africa (VCEEA) businesses.
Overall, the company’s sales volumes fell 3% compared to 2016, while revenues were down 7%. Earnings were harder hit, dropping 26% on the previous year.
Despite a return to growth in the Brazilian economy, cement demand fell 6.4% in 2017, according to the Brazilian Cement Association. This compares to 11.7% and 9.5% falls in 2016 and 2015, respectively.
There were also signs of a recovery in demand in 2018, as Votorantim reported a year-on-year fall in sales volumes of just 1.1% in 4Q17.
In North America, strong price increases offset a fall in cement consumption in Votorantim’s key US markets around the Great Lakes. In Ontario, Canada, cement consumption was up 3.2%. North American revenues were up 4% on a local currency basis, although this was offset by an appreciation of the Brazilian real.
In the Europe, Asia & Africa region, Votorantim’s revenues were stable in most of the countries in which the company operates, although results were again hit by appreciation of the Brazilian real.
Adjusted earnings totaled BRL1.8 billion, a fall of 26% on the back of Brazil’s continued slowdown and BRL86 million in one-off costs, as well as appreciation of the Brazilian real.
Read the article online at: https://www.worldcement.com/the-americas/25042018/votorantim-reports-challenging-2017/