BUSINESSHIGHLIGHTS
US
Third quarter growth for
Caterpillar
Revenues andprofits improvedespitemarkets
C
aterpillar’s revenues for the third quarter of 2014 edged up +1% on
the same period last year, to US$ 13.5 billion. The company’s net
profitwas up+8% toUS$1.02billion.
Company chairman andCEODougOberhelman said, “We’repleasedwith
the third-quarter profit improvement considering world economic growth
remains slower than we’d like. We’ve continued to focus on what we can
control— costmanagement andoperational execution.”
Third quarter revenues at Caterpillar’s Construction Industries business
were down -2% to US$ 4.47 billion. Although it saw growth in North
America and the Europe, Africa &Middle East region, this was offset by
declines inLatinAmerica andAsia-Pacific.
More significant for Caterpillar was the -19% decline in sales by its
Resource Industries business,which serves themining industry.However, the
company’s Energy&Transportationbusiness saw a +13% rise in revenues.
Revenues for 2014 are expected to be about US$ 55 billion, themiddle of
the previous outlook range ofUS$54 toUS$56billion.
UK
Steel sale
Tata Steel has confirmed it is
examining the sale of its long
products division to the Klesch
Group. The planned disposal of
this business which employs 6,500
people in the UK and Europe
operating within the construction
and excavation sectors, comes as the
company restructures.
AUSTRALIA
Transfield bid
Ferrovial has made a non-binding
offer
to
acquire
Australian
construction and asset management
companyTransfieldServices.
Ferrovial’s cash offer values
Transfield at AU$ 1 billion (US$
885 million), and the company
says it represents a 39% premium
on Transfield’s average share price
over the week running up to the
offer being made. However, the
offer is not being recommended to
shareholders by the Board of the
AU$ 3.7 billion (US$ 3.3 billion)
perYearCompany.
FRANCE
Vinci drop
Vinci group consolidated revenues
for the first nine months of
2014 totalled € 28.4 billion
(US$ 35.8 billion). Contracting
revenue
–
including
Vinci
Energies, infrastructure and urban
development arm Eurovia, and
Vinci Construction – amounted to
€ 24.0 billion (US$ 30.2 billion),
down -2.5%on a like-for-like basis.
Sweden
Revenues up
Volvo Construction Equipment’s
revenues were up +2% in the third
quarter of the year, compared to
the same period last year, to SEK
12.6 billion (US$ 1.74 billion).
Operating profits jumped +31% to
SEK648million (US$89million).
However, the company said
business had been tough in some
parts of the world. Although
demand inNorthAmerica remained
robust, Europewasweakening.
VALUEOF 1:
SYMBOL AU$
BRL
UK£ CNY
€
INR
YEN MXN RUR SAR
ZAR KRW CHF
US$
AustralianDollar
AU$
0.47 0.552 5.42 0.701 54.3
96
11.86 37.0
3.32
9.65
933 0.845 0.885
BrazilianReal
BRL
2.12
0.260 2.55 0.330 25.6
45.4
5.58
17.4
1.56
4.54
439 0.398 0.417
BritishPound
UK£
1.81
3.85
9.8
1.27
98.4
175
21.5
67.0
6.01
17.5
1689 1.53
1.60
Chinese Yuan
CNY
0.185 0.392 0.102
0.129 10.03 17.8
2.19
6.83 0.613 1.781
172 0.156 0.163
Euro
€
1.43
3.03
0.79
7.73
77.5
138
16.9
52.8
4.73 13.76 1331 1.21
1.26
IndianRupee
INR
0.018 0.039 0.010 0.100 0.013
1.8
0.218 0.681 0.0611 0.178 17.2 0.0156 0.0163
Japanese Yen
YEN
0.010 0.022 0.006 0.056 0.007 0.564
0.1230 0.384 0.0344 0.1001 9.7 0.0088 0.0092
MexicanPeso
MXN
0.084 0.179 0.047 0.457 0.059 4.58
8.13
3.12 0.280 0.813
79
0.071 0.0746
RussianRuble
RUR
0.027 0.057 0.015 0.146 0.019 1.47
2.61 0.321
0.090 0.261 25.2 0.0228 0.0239
Saudi Riyal
SAR
0.301 0.640 0.166 1.632 0.211 16.373 29.040 3.573 11.147
2.91
281 0.255 0.267
SouthAfricanRand ZAR
0.104 0.220 0.057 0.561 0.073 5.633 9.991 1.229 3.835 0.344
97
0.088 0.092
SouthKoreanWon KRW
0.0011 0.0023 0.0006 0.0058 0.0008 0.0583 0.1033 0.0127 0.0397 0.0036 0.0103
0.00091 0.0009
Swiss Franc
CHF
1.18
2.51
0.65
6.41
0.83 64.29 114.03 14.03 43.77 3.93 11.41 1104
1.047
USDollar
US$
1.13
2.4
0.624 6.12 0.792 61.4 108.9 13.4
41.8
3.75
10.9
1054 0.955
For exampleUS$ 1=AU$ 1.13
Exchange rates: Ocotber 2014
US
Skanska’s USABuilding division
has been hit by US$ 161million in lost
orders due to the cancellation of two
projects. InBoston, the cancellation
of construction on theRuthMulan
ChuChaoCenter by HarvardBusiness
School will wipeUS$ 51million
from its order book. Meanwhile, the
Morton Plant Hospital Association has
cancelled the order for construction of
a hospital building in FloridaworthUS$
110million.
AUSTRALIA
US-based private equity
company Centerbridge Partners has
announced up toUS$ 352million
in loans and new equity for Boart
Longyear. The recapitalisation plan is
expected to increase liquidity at the
drilling equipmentmanufacturer and
drilling services company toUS$ 240
million and cut US$ 120million from
its net debt.
UK
A joint venture betweenBalfour
Beatty, Amec and Jacobs haswon a
contract tomanage on-sitewaste at
Sellafield nuclear power plant. The
project, valued at up toUK£428million
(US $539million) involves construction
of a new box encapsulation plant.
US
Terex’s revenues for the third
quarter of the year were up+3% to
US$ 1.81 billion, compared to the
same period last year. However, its
net profit from continuing operations
was down -31% toUS$58.7million. A
previously announced slowdown in its
cranes business contributed to the fall
in profits.
international
construction
november 2014
BUSINESSNEWS
10
EUROPE
Cemex asset swap
Holcim and Cemex have gained
regulatory approval for their
proposed asset swap in various
European countries.
Rather than combining their
businesses in Spain into a joint
venture as originally planned,
Cemex will purchase Holcim’s
Gador cement plant and Yeles
grinding station.
Holcim will retain facilities in
Spain with 2.2 million tonnes
of cement capacity, as well as
its aggregates and ready-mixed
concrete businesses.
Meanwhile
transactions
in
Germany and the Czech Republic
stand as originally proposed and
Cemex will pay Holcim of € 45
million (US $57million) as part of
the deal.
In Western Germany, Holcim
will go ahead with the acquisition
of Cemex’s businesses, including a
cement plant and grinding stations
inNorthRhine-Westphalia.
