JAPAN: Sumitomo Osaka Cement seen with record profit on cheaper coal

Sumitomo Osaka Cement likely will report operating profit of around 17 billion yen ($142 million) for the nine months ended in December, up 11% year over year and a record for the April-December period.

Price drops for coal, a fuel for cement kilns, lifted profitability.

Sales are seen rising about 2% to around 176 billion yen as soft demand in Japan amid a construction worker shortage was offset by robust exports to elsewhere in Asia. Outside of cement, the Japanese company's sales were strong for lithium niobate modulators, which convert communications data, as well as for ingredients for sunscreens and parts for chip-building machines.

The company's high shipping costs in the year-earlier period due to problems with its cement storage facilities returned to normal, a boon to results.

Sumitomo Osaka Cement releases its nine-month earnings Feb. 9. It likely will maintain its full-year forecasts, looking to lift sales 2% to 240 billion yen and increase operating profit 8% to 24 billion yen.

JAPAN: Japan's cement makers boost Asia-bound exports

Japanese cement producers are turning to exports to compensate for sluggish domestic demand. The latest numbers suggest their strategy is paying off.

"Japan's cement exports are growing," Akira Fujisue, a senior official of the Japan Cement Association and senior managing executive officer of Sumitomo Osaka Cement, told reporters in November. He pointed to good business prospects in Singapore and other Asian markets.

Indeed, cement exports in October surged 58% on the year to 871,000 tons -- partly due to a decrease in production a year earlier while factories were being refurbished. Exports also registered year-on-year growth from November 2014 through July 2015. 

Thanks to increased demand in Asia, the Japan Cement Association estimates exports in fiscal 2015 -- through this coming March -- will rise 6% to 10 million tons. 

Cement sales in Japan are on the decline amid a slowdown in public works projects. The association now estimates domestic demand at 44 million to 45 million tons for fiscal 2015, down from a previous estimate of 46 million tons. This would mark the second straight year with a fall in demand.

Construction companies have also been shifting to building methods that require less cement, shrinking the market further. The bleak outlook at home is spurring cement makers, which have been exporting around 15% of their output, to try to ramp up shipments abroad. 

Port, road and other infrastructure projects are underway around the region. Shipments to Singapore, in particular, have risen because of highway construction there. Demand in Hong Kong is robust as subways and highways are being built.

Against this backdrop, Taiheiyo Cement has boosted its storage capacity in Singapore by 50%, to 74,000 tons. The company is pushing a high-end product in the city-state -- a mixture of regular cement and coal ash. A hit in Asian and other emerging markets, it does not crack easily when turned into concrete.

Mitsubishi Materials, meanwhile, aims to raise its supply capacity in the U.S.

Strong demand is keeping export prices high. Major Japanese cement producers and Asian buyers have negotiated export prices of $40 to $45 per ton for fiscal 2015, in free-on-board terms. That price level is roughly the same as last year's; prices had been rising since 2010.

JAPAN: Japanese cement makers to boost shipping capacity

Cement manufacturers in Japan aim to upgrade their fleets to move more of the concrete ingredient throughout the country amid brisk demand from the reviving construction industry.

Starting early next year, three major producers are expected to spend more than 10 billion yen ($94.3 million) combined to acquire new and used vessels. Roughly 70% of cement is moved by sea.

Sumitomo Osaka Cement will spend 6.8 billion yen, first adding a large ship that can carry 8,000 tons in February and then purchasing two 2,000-ton ships and one 5,500-ton ship after April 2015. While the company will decommission three older vessels, all told, its fleet will expand to 20 ships with a combined capacity of 93,000 tons, up from this year's 19 vessels and 82,000 tons.

Ube-Mitsubishi Cement plans to begin sailing three new large ships, each with a capacity of roughly 7,000 tons to 12,000 tons, in February or later. The company is expected to spend about 1.5 billion yen on the additions, two of which will be newly built and the other rented.

Taiheiyo Cement will add three large ships for about 2 billion yen next year or later.

The Japanese cement market had been shrinking since the early 1990s, prompting manufacturers to slim down their fleets. The trend's reversal owes to resurgent construction in large cities, rebuilding after the 2011 earthquake and tsunami, and an anticipated uptick in demand ahead of the 2020 Tokyo Olympics.

JAPAN: Taiheiyo Cement to burn disaster rubble at Ofunato plant

Taiheiyo Cement Corp. said Monday it will start incinerating debris left by the March 11 earthquake and tsunami in two cities in Iwate Prefecture at its plant in Ofunato next week as part of efforts to reconstruct the cities devastated by the disasters.

Japan's largest cement producer will burn debris mainly from collapsed houses scattered around the cities of Ofunato and Rikuzentakata from June 22 using its No.5 rotary kiln, which is located on higher ground and avoided damage.

The company halted production of cement at the plant after its furnaces were damaged by the massive tsunami following the earthquake. But it decided to make use of the No.5 furnace to burn the debris at the requests of the local governments, the company said.

The company will incinerate 300 tons of debris every day up until around the end of August, and will continue thereafter if the furnace can handle it, the company said. It may also consider expanding the areas from which it will accept rubble as the Iwate prefectural government has asked it to do so, according to a company official.

How the ash produced in the process of incineration will be disposed of has yet to be determined, but it could be used in the production of cement, the official added.

The company plans to partially resume cement production at the Ofunato plant in November.

JAPAN: HeidelbergCement sees demand spike after Japan quake

* Sees Japan switch to cement importer, from exporter

* 2010 net profit triples to 511 million euros

* 2010 sales up 5.8 percent to 11.8 bln eur

* Expects North America, Germany, Scandinavia boost in 2011

* Shares up 4 percent, outperform index

- HeidelbergCement expects to supply the reconstruction effort in japan as the earthquake-stricken country is forced to import the building material to meet demand.

HeidelbergCement Chief Executive Bernd Scheifele said on Thursday he expects Japan to switch to being an importer of cement from an exporter following the disaster.

"The result (of the Japan earthquake) could be a cement and clinker shortage in Asia," Scheifele, said at a press conference.

HeidelbergCement is one of the world's largest cement makers with a major presence in Asia, owning a majority stake in Indonesia's biggest cement maker by market value, PT Indocement Tunggal Perkasa.

HeidelbergCement shares were 4 percent higher by 1333 GMT, outperforming the wider STOXX 600 European Construction and Materials index which was up 1.7 percent.

One construction sector analyst, who asked not to be named, said.

"HeidelbergCement is not saying that the crisis in Japan is good in any way, all they are saying is that they are in a position to take advantage of opportunities created by the situation," he said, adding that this was driving share prices.

HeidelbergCement said on Thursday that sales had increased by 5.8 percent to 11.8 billion euros in 2010, and that net profit had tripled to 511 million euros.

The German company, which competes with Switzerland's Holcim and France's Lafarge, added that it expects improving demand in Scandinavia, Germany, the United States and Canada.

HeidelbergCement was hard hit during the financial crisis, especially by plummeting demand in its key North American market, where commercial construction and postponements of U.S. state and local spending dented profits. U.S. stimulus spending was slow to pick up, too.

Scheifele warned that the sharp rise in energy costs, as well as inflationary pressures, could burden sales in 2011.

"In view of the slow recovery in the mature markets and the rising costs and inflationary pressure, we are maintaining our focus on cash flow and stable margins in order to reduce our debt", Scheifele said in a statement.

Data from Thomson Reuters StarMine shows HeidelbergCement trading at 12.0 times its 12-month forward earnings, in line with Lafarge but below Holcim, at a multiple of 15.1.

JAPON: Cemex ‘construiría’ ganancias en Japón

Según Ixe, las ventas de la cementera en Asia crecerían 21.1% con la reconstrucción del país; se prevé que para el restablecimiento de la infraestructura se utilicen alrededor de 180,000 mdd

CIUDAD DE MÉXICO (Notimex) — Ixe Casa de Bolsaprevió que en Japón la demanda de materiales de construcción, entre ellos el cemento, aumentará de manera significativa más adelante, a fin de llevar a cabo la reconstrucción de lo destruido por el terremoto y el tsunami del viernes pasado.

Esto representa una oportunidad de negocio para lacementera mexicana Cemex.

"Consideramos que la situación de Japón representará a mediano plazo un factor positivo para Cemex en sus operaciones en Asia, por el impulso que se dará a sectores de construcción e infraestructura que conllevarán a mayor demanda de materiales de construcción (cemento)", dijo el analista de Ixe, José Itzamna Espitia.

Itzamna Espitia precisó que la infraestructura y el sector construcción del país asiático sufrieron un fuerte daño, y se estima un monto de alrededor de 180,000 millones de dólares o mayor, para realizar la reconstrucción.

Esto incluirá carreteras, puentes, vías ferroviarias, puertos de todo el país y lo correspondiente al sector inmobiliario.

La capacidad instalada de producción de cemento deCemex en aquel continente es de 5.7 millones de toneladas por año, y en 2010 vendió casi 4.5 millones, "por lo que ante la expectativa de una mayor demanda de cemento en Japón, Cemex podría incrementar su volumen de venta en 21.1% en la región".

De acuerdo con el reporte, a nivel consolidado el beneficio para la cementera es moderado por la participación de Cemex en la región, ya que no tiene operaciones en el mercado japonés, pero sí tiene presencia en Asia a través de Filipinas, Tailandia, Blangadesh, Taiwán y Malasia.

Durante 2010, la región vendió 7.0, 4.0 y 1.4% de los volúmenes de venta de cemento, concreto y agregadosde manera respectiva, de Cemex; en tanto, Asia representó 3.6% de las ventas (en dólares) y 3.6 por ciento% de su flujo operativo (Ebitda Ajustado), precisó.

El analista destacó que del total de las exportaciones de cemento de las operaciones en Asia de la compañía, 85% fue exportado a la región sureste de Asia (15% a Europa).

Pero ante la situación de Japón, el porcentaje exportado a la región de Asia pudiera ser mayor, si además tomamos como factor la distancia.

En el corto plazo, agregó, la situación de Japón, de deuda en Europa y el conflicto geopolítico en África y Medio Oriente han tenido mayor preponderancia en los mercados accionarios, por lo que no descartó volatilidad en los mismos y en el precio de la acción de la compañía.

"Prevemos perspectivas positivas para Cemex en este año y consideramos que a mediano y largo plazo, debido a una mayor recuperación en sus mercados, la compañía tendrá mejores resultados operativos. Por lo anterior, reiteramos nuestra recomendación de mantener y nuestro Precio Objetivo (PO) estimado de 2011 de 13 pesos", puntualizó.

JAPON: Afectados y beneficiados por el terremoto en Japón

Al ser Japón la tercera economía más grande del mundo, de gran vocación exportadora, se anticipa que entre los sectores más afectados por la crisis desencadenada por el terremoto estará el exportador y, desde luego, el asegurador, por la magnitud de los daños en la infraestructura y la vivienda.

Los sectores de energía y metales enfrentan cortes de electricidad y grandes incendios, aunque por ahora algunos puertos y siderúrgicas que cerraron como medida de precaución fueron reabiertos. Las refinerías petroleras, al igual que las plantas nucleares, cerraron de inmediato tras el terremoto.

La baja inicial en el petróleo, de acuerdo con la Agencia Internacional de Energía, se explica por la menor demanda que en el corto plazo sucederá de ese país. Japón consume 4.4 millones de barriles diarios.

En tanto, Sony Corp suspendió la producción en ocho plantas en la región afectada y dijo no estar segura de cuándo se restablecerán las operaciones.

Por su parte, Toshiba Corp declaró que no sabía cuándo sería capaz de reabrir su fábrica de chips, ubicada en el norte de Japón.

Impactan a Mexichem

Los efectos para México empiezan a cuantificarse. Mexichem anunció que sus operaciones de Japón permanecerán suspendidas aproximadamente un mes. La contribución anual de Japón a las operaciones de Mexichem es de 3.0%, por lo que el efecto sobre el consolidado es de apenas 0.25% de las ventas.

...pero no todos pierden

Entre los sectores que resultarán beneficiados por la crisis que se vive en Japón se cuentan los asociados, en primer lugar, a la reconstrucción del país. Kajima Corporation, empresa japonesa dedicada a los proyectos de ingeniería y a la construcción de plantas nucleares, acumuló una ganancia de 28.3% en la jornada de ayer, en su mercado de valores.

Taiheiyo Cement Corp, Sumitomo Osaka Cement Co Ltd, empresas cementeras que cotizan también en el índice Nikkei, registraron ganancias de 23.1 y 20.5%, respectivamente. Taisei Corp, dedicada a la construcción de oficinas e instalaciones eléctricas, avanzó 20.3 por ciento.

Es importante destacar que muchas de las actividades productivas se desplazaron a países vecinos, lo que se reflejó en las variaciones positivas de los mercados financieros de esos países. En Hong Kong, el índice Hang Seng registró un avance de 0.41%; el CSI 300, de China, aumentó 0.48 por ciento. En Corea del Sur, el KEX 100 aumentó 0.76 por ciento.

Otras economías emergentes, que si bien no tienen tanta cercanía geográfica, pero que actualmente podrían aprovechar el vacío dejado por Japón, registraron variaciones positivas en sus mercados de valores. El mercado de Indonesia avanzó 1.05%, el de la India 1.46% y el de Tailandia 1.57 por ciento.

JAPAN: Russia to cement control of disputed islands with defense buildup

TOKYO (Kyodo) -- Russia intends to cement its control of Japanese-claimed islands off Hokkaido by deploying sophisticated weapons, such as antiship cruise missiles and an air defense system, defense experts said.

On Tuesday, Russia's Interfax news agency quoted a senior Russian defense official as saying that Russia will deploy Yakhont antiship cruise missiles and the Tor-M2 missile shield in the Kuril island chain that includes the Japanese-claimed islands of Etorofu, Kunashiri, Shikotan and the Habomai group of islets.

Russia calls those islands the Southern Kurils while Japan calls them its Northern Territories. Soviet troops seized them shortly after Japan's surrender in World War II.

Since the 1991 collapse of the Soviet Union, Russia has scaled down its military capabilities in the Southern Kurils, but the latest moves apparently indicate a change in its defense policy there and may exacerbate the territorial dispute between Japan and Russia, the experts said.

Russo-Japanese ties have deteriorated since Russian President Dmitry Medvedev made a one-day trip to Kunashiri Island in November.

During the Cold War era, the Soviet Union deployed around 10,000 troops in the Southern Kurils, but the number is currently around 3,500.

Russia deploys battle tanks there but no fighter jets, and its air and maritime defense capabilities are regarded as relatively weak, they said.

Russia's Yakhont antiship cruise missile is capable of carrying a 200-kilogram warhead over a firing range of about 300 kilometers. It flies above the sea surface at supersonic speed and is difficult to detect by radar.

The United States and Israel have strongly opposed Russia's plan to supply the Yakhont cruise missile, which is called a ship buster due to its destructive capabilities, to Syria.

The Tor-M2 surface-to-air missile system is mounted on a self-propelled launcher and is capable of firing missiles at four targets simultaneously.

Russia also plans to deploy Mi-28 attack helicopters, which are capable of operating at night and are armed with antitank and air-to-air missiles, on Etorofu Island.

Russian Army Gen. Nikolay Makarov, chief of the General Staff of the Russian armed forces, has said that at least one of the four Mistral-class amphibious assault ships currently under joint construction with France will be deployed in the Russian Far East.

Russia's Pacific fleet, headquartered in Vladivostok, could significantly boost its defense capabilities around the disputed islands if the assault ship is deployed.

A popular Russian radio presenter, Sergey Stillavin, recently wrote on his weblog that he has heard that Japan's ambassador to Russia called in representatives of Japanese business corporations in Moscow and urged them to prepare to return to Japan sometime soon.

Stillavin also wrote that Japan is considering war against Russia in order to get back the disputed islands, a groundless comment that indicates the extent to which bilateral relations have deteriorated.

Igor Korotchenko, chief editor of the Russian magazine "National Defense," said he does not believe Japan would resort to force to get back the disputed islands, adding that the defense buildup there is necessary partly to dampen the fervor of the Japanese people.

But Pavel Felgengauer, a military affairs commentator at the independent Novaya Gazeta newspaper, was critical of the plan. He said he does not think any militant political forces would capture power in Japan, and that Russia's military buildup on the islands does not make sense.

JAPAN: Japan's largest cement producer Cement

JAPAN PRESS: Japan's largest cement producer Taiheiyo Cement Corp plans to raise cement prices by between Y1,000 and Y1,500 per ton, starting with April shipments, to reflect higher costs for raw materials, the Nikkei reports. The industry's No. 4 player, Tokuyama Corp, has already announced a hike of its own, and others are likely to follow suit, the report says. Taiheiyo Cement tried to raise prices by a range between Y500 and Y1,000 per ton last spring, only to run into a strong backlash from raw concrete producers, it says.