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Johannesburg - Pretoria Portland Cement [JSE:PPC] said on Monday that cement sales in SA declined 5% for the quarter ending December 2010, with its own sales tracking the trend in most provinces.
Sales to the construction sector declined the most, it said in a trading update.
PPC said that demand in the Western and Eastern Cape continued to be the most disappointing.
"Cement demand in Botswana remained resilient and sales from our Zimbabwean operations continued to grow. However, a strong local currency constrained exports from our South African factories to Mozambique and Angola," the group said.
It said that weaker demand from the local steel and alloys industries resulted in lime sales declining compared with the comparable period last year, while aggregate sales declined in line with considerably lower activity in the construction industry.
Trading conditions in the second half were subdued compared to the first, and lower sales in all divisions negatively affected operating margins.
It continues to be concerned about the outlook for the local building and construction industries in the short term, and expects demand for cement to remain weak.
"Our longer-term business outlook remains positive, reinforced by the South African government's continued commitment to infrastructure development and job creation and the expected recovery in residential building activity in due course," it said.
Sales to the construction sector declined the most, it said in a trading update.
PPC said that demand in the Western and Eastern Cape continued to be the most disappointing.
"Cement demand in Botswana remained resilient and sales from our Zimbabwean operations continued to grow. However, a strong local currency constrained exports from our South African factories to Mozambique and Angola," the group said.
It said that weaker demand from the local steel and alloys industries resulted in lime sales declining compared with the comparable period last year, while aggregate sales declined in line with considerably lower activity in the construction industry.
Trading conditions in the second half were subdued compared to the first, and lower sales in all divisions negatively affected operating margins.
It continues to be concerned about the outlook for the local building and construction industries in the short term, and expects demand for cement to remain weak.
"Our longer-term business outlook remains positive, reinforced by the South African government's continued commitment to infrastructure development and job creation and the expected recovery in residential building activity in due course," it said.
