SHARE
COPY LINK

HOLCIM

Holcim’s earnings leap despite lower sales

Swiss cement group Holcim recorded a jump in earnings for the first half of 2013 of almost 50 percent compared to the same period a year earlier but also reported that sales fell.

Holcim's earnings leap despite lower sales
Photo: Holcim

The world's largest cement maker, which is working to crimp costs, said on Thursday that net profit rose by 47.4 percent to 571 million francs ($612.3 million).
   
Analysts polled by the AWP agency had broadly expected earnings of 529 million francs.
   
But sales were lower than analysts had expected, totalling 9.6 billion francs, a fall of 5.1 percent on a 12-month comparison.
   
Analysts had expected 9.7 billion francs.
   
The group said that sales had fallen because of weak economic conditions.
   
Sales had been lower than expected in India, its key market in Asia, and also in Canada, Mexico and Morocco.
   
Another factor had been a hard winter in the northern hemisphere which had crimped activity in the construction industry.
   
Holcim said that a programme to contain costs was going well.

Action to restructure the business was beginning to have a clear effect in Latin America and in Europe.
   
The company said that it expected sales of cement this year to increase but that sales of aggregates and concrete mix ready for use would be lower than in 2012.
   
The group stood by its financial targets and said it expected to achieve internal growth of its operating and net profit figures.
   
However, this is more cautious than its outlook at the end of the first quarter of the year when it spoke of achieving a "significant" increase.
   
At the end of July, French group Lafarge, the biggest cement-maker in the world and Holcim's main rival, also struck a more cautious note saying that it now expected sales of concrete to rise by three percent, having mentioned previously growth of up to four percent.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

HOLCIM

LafargeHolcim profits shrink after merger

Swiss-based LafargeHolcim said on Wednesday that its profits collapsed as the cost of building the world's biggest cement company took its toll.

LafargeHolcim profits shrink after merger
Photos: AFP

In its first earnings report since the merger of Lafarge and Holcim was concluded in mid-year, it said EBITDA, a measure of operating profit, fell to 1.3 billion francs ($1.3 billion) in the third quarter on a comparable basis, and to 3.6 billion Swiss francs in the nine months to
September, a drop of 18.8 percent.
   
The nine-month results were “impacted by merger and restructuring costs, adverse foreign exchange, an economic slowdown in China and Brazil as well as softness in France and in Switzerland,” the company said in a statement.
   
Its performance held up well in the United States, Asia, Oceania and Latin America, it said.
   
The company confirmed its synergy targets from the merger, and said it was targeting a dividend of 1.50 Swiss francs per share in 2015, up from 1.30 last year.
   
Analysts said this pushed up the LafargeHolcim share price up by more than three percent in early Zurich trading, to 55.3 francs.

SHOW COMMENTS