03PLATFORM FOR THE NEXT 70 YEARS
MARKET OF OPERATION AND SALES SEGMENTATION
Chrysotile Ore
In the last few years, the focus of SAMA's sales area has been the more profitable markets, remembering that chrysotile ore, although being a mineral, is not sold as a commodity.
SAMA operated at full capacity throughout 2010, having extracted a total of 302,000 tons of chrysotile ore, having achieved a sales volume of 306,000 tons, obliging the mining company to reduce its stock levels.
The majority of production – 55% – was allocated to the domestic market, due to its high level of profitability as a consequence of the buoyant moment being enjoyed in the building sector. This total represents an increase of 20% compared to 2009. Domestically, sales are to the fibre cement industry, while 45% of production was exported to other countries. SAMA's customers are based in the following countries: India, Indonesia, United Arab Emirates, Angola, Thailand, Mexico, Malaysia, Sri Lanka and Colombia.
Prices are governed by the market and demand. All transport is outsourced to companies that meet rigorous standards of quality and safety. In the domestic market, prices in 2010 were 8.4% higher than the previous year, while export prices were up by an average of 8.9%.
The Brazilian mining company differentiates itself from its competitors by the unvarying quality of its fibre, and its respect for agreed delivery schedules, independent of the final destination for the ore, whether it be in Brazil or abroad.
FINISHED PRODUCTS
Fibre cement
2010 was the best year in Eternit's history, because the Company operated at a capacity utilisation rate of over 90%, and increased its number of sales outlets from 13,000 to 14,000 as a result of the strong performance seen in the building sector.
To speed up the operations of its sales force, Eternit has provided its sales team with laptop computers. Instead of telephoning to a call centre to process orders and deal with questions, the team accesses client data with mobile equipment to speed up the sales process. In 2010 Eternit sold 827,000 tons of fibre cement products, 13% more than in 2009.
Over the next few years, the Company will be targeting construction firms seeing that of the sales volume in 2010, only 2% was to this segment.
Sales of new products (metallic tiles, polyethylene water tanks, vitreous chinaware, lavatory seats and piped water filters) grew significantly compared to 2009, being a consequence of consumer confidence in the Eternit brand. Their contribution to consolidated net sales in 2010 was 3.4%.
Stock of fibre cement tiles
Concrete tiles
With the acquisition of Tégula, on February 11, 2010, Eternit started to offer a more robust portfolio of products, in addition to gaining access to all levels of society. Tégula is the leader in its segment, with a market share of approximately 35%, and has more than 33 product lines in its portfolio, with concrete tiles making up the majority.
One of Tégula's differentials is its Architects Club through which its products are specified among consumers. Tégula's products for the most part cater to the middle and high-income classes. For construction firms, "Big" tiles are becoming an interesting option. Significant business was carried out with these companies in 2010.
The chart below shows Tégula's performance in the various quarters of 2010.
