BUSINESS HIGHLIGHTS
EUROPE
Holcim and Cemex
reshuffle
Assets to be swapped in Germany and Czech
Republic, along with new joint venture in Spain
H
olcim and Cemex have agreed a series of deals that will see both
companies reorganise their European businesses. Holcim will take
over Cemex assets in Western Germany in exchange for its operations
in the Czech Republic and € 70 million (US$ 93 million) in cash. The two
companies will also combine their operations in Spain, with 25% owned by
Holcim and 75% by Cemex.
In Western Germany, Holcim will take over one cement plant and two
grinding mills of 2.5 million tonnes total capacity, along with one slag
granulator, 22 aggregates quarries and 79 ready-mixed concrete plants.
Cemex, meanwhile, said it remained committed to the German market, and
would maintain its presence in Northern, eastern and Southern parts of the
country. Cemex will acquire all of Holcim’s businesses in the Czech Republic,
including one cement plant, four quarries and 17 ready-mixed plants.
In Spain, Cemex and Holcim will combine all their cement, ready-mix and
aggregates operations with Cemex taking a 75% controlling interest.
US
Outlook cut
Caterpillar has revised its outlook
for 2013 after reporting a drop in
revenues to US$ 14.6 billion for the
second quarter of 2013, down from
US$ 17.4 million a year ago. It
blamed reduced dealer inventories
and lower demand for mining
equipment as net profit also slipped
to US$ 960 million, from US$ 1.7
billion in Q2, 2012.
FRANCE
Revenues rise
Vinci saw its revenue for the first half
of 2013 rise +4.3% to € 18.7 billion
(US$ 25 billion), but net profits
slipped -4.7% to € 748 million
(US$ 996 million). The contractor
said it was hit by a difficult economic
environment and severe weather
conditions across most of Europe,
as well as tax measures imposed
in France in the second half of
last year.
DENMARK
Pihl bankruptcy
Contractor E Pihl & Søn has filed
for bankruptcy. The company
blamed its previous domestic and
international expansion, which it
was had been “far too aggressive,”
along with claims against it and
other costs that had not been
provided for.
Pihl was founded in 1887 and is
one of Denmark’s oldest contractors,
with activities in 15 countries.
AUSTRALIA
Rail win
A consortium led by contractor
Thiess has been awarded a AU$ 650
million (US$ 579 million) contract
to build a 12.6 km rail link in south
east Queensland, Australia. The
Moreton Bay Rail Link will connect
the greater Brisbane rail network,
which currently ends at Petrie, a
suburb north of the city, to the
rapidly growing Moreton Bay region
to the east. Six new stations will be
built at Kippa-Ring, Rothwell,
Mango Hill East, Mango Hill,
Murrumba Downs and Kallangur.
VALUE OF 1:
SYMBOL AU$
BRL
UK£ CNY
€
INR
YEN MXN RUR SAR
ZAR KRW CHF
US$
Australian Dollar
AU$
0.48 0.575 5.46 0.670 61.4
87
11.79 29.6
3.35
9.20
996 0.823 0.893
Brazilian Real
BRL
2.08
0.276 2.63 0.322 29.5
41.9
5.67
14.2
1.61
4.42
479 0.396 0.429
British Pound
UK£
1.74
3.62
9.5
1.16 106.8 152
20.5
51.6
5.82
16.0
1733 1.43
1.55
Chinese Yuan
CNY
0.183 0.381 0.105
0.123 11.24 15.9
2.16
5.42 0.613 1.683
182 0.151 0.163
Euro
€
1.49
3.11
0.86
8.16
91.7
130
17.6
44.3
5.00 13.73 1488 1.23
1.33
Indian Rupee
INR
0.016 0.034 0.009 0.089 0.011
1.4
0.192 0.483 0.0545 0.150 16.2 0.0134 0.0145
Japanese Yen
YEN
0.011 0.024 0.007 0.063 0.008 0.705
0.1352 0.340 0.0384 0.1055 11.4 0.0094 0.0102
Mexican Peso
MXN
0.085 0.177 0.049 0.464 0.057 5.21
7.39
2.52 0.284 0.780
85
0.070 0.0758
Russian Ruble
RUR
0.034 0.070 0.019 0.184 0.023 2.07
2.94 0.398
0.113 0.310 33.6 0.0278 0.0301
Saudi Riyal
SAR
0.299 0.621 0.172 1.632 0.200 18.347 26.027 3.520 8.853
2.75
298 0.246 0.267
South African Rand ZAR
0.109 0.226 0.063 0.594 0.073 6.680 9.476 1.282 3.223 0.364
108 0.090 0.097
South Korean Won KRW
0.0010 0.0021 0.0006 0.0055 0.0007 0.0616 0.0875 0.0118 0.0297 0.0034 0.0092
0.00083 0.0009
Swiss Franc
CHF
1.21
2.53
0.70
6.64
0.81 74.62 105.86 14.32 36.01 4.07 11.17 1210
1.085
US Dollar
US$
1.12
2.33 0.644 6.12
0.75
68.8
97.6
13.2
33.2
3.75
10.3
1116 0.922
For example US$ 1 = AU$ 1.12
Exchange rates: August 2013
LIBYA
A
€
963 million (US$ 1.3
billion) contract to construct the
first 400 km section of a 1,700 km
coastal motorway in Libya has been
awarded to a consortium led by Italian
contractor Salini Impregilo (58%). The
consortium also includes La Società
Italiana per Condotte d’Acqua and
contractors Impresa Pizzarotti & C and
Cooperativa Muratori & Cementisti.
FRANCE
Mecalac CEO Georg Sick
is to depart from the manufacturer
after just over two years. The split
is described as amicable and is
said to be due to differences with
executive chairman Henri Marchetta
over strategy. Mr Marchetta will
resume his former role as CEO of the
company.
INDIA
Materials producer CRH’s
50:50 joint venture in India, MHIL,
has acquired 3.2 million tonnes-per-
year cement producer Sree Jayajothi
Cements for INR 1,400 crore
(US$ 233 million). MHIL and Sree
Jayajothi are both located in Andhra
Pradesh in South India, and CRH said
the deal would create a market leader
in the region.
BRAZIL
The first Shandong Lingong
Construction Machinery (SDLG)
production facility outside China has
opened. Manufacturing has started
at the company’s excavator factory
in Brazil – a US$ 10 million assembly
hall within the Volvo CE facility in
Pederneiras, São Paulo. SDLG is Volvo
CE’s Chinese joint venture.
international
construction
september 2013
BUSINESS NEWS
10
AUSTRALIA
Murray & Roberts to acquire Clough
South African contractor Murray &
Roberts has launched a cash offer
to acquire the 38.4% of Australian
contractor Clough that it does not
already own.
The offer has been made at
AU$ 1.46 (US$ 1.32) per share,
for a total cost of AU$ 434 million
(US$ 393 million). This values
Clough at some AU$ 1.13 billion
(US$ 1.02 billion).
Clough forecasts revenues of
AU$ 1.5 billion (US$ 1.36 billion)
for the year to June 30. Operating
profits for the year are expected
to be AU$ 90 million (US$ 81
million), and the company has an
order backlog of AU$ 2.32 billion
(US$ 2.1 billion). Murray &
Roberts has held a stake in the
energy & chemicals and minerals &
mining company since 2003.
