HeidelbergCement sales jump on Italcementi consolidation
Published by Jonathan Rowland,
HeidelbergCement saw its sales volumes jump significantly in 4Q16, following the integration of Italcementi assets into the business. The German-based cement company completed the acquisition of its Italian counterpart last October.
In 4Q16, the company reported sales of 31 million t of cement – an increase of 50% on the previous year. Aggregates and ready-mixed concrete sales were also higher. Group revenue rose by 25% to €4.2 billion.
For the full year, the company announced group revenue was up 13% to €15.2 billion, as sales of the company’s core products all rose. Operating income increased 13% to €2.9 billion – a record since the financial crisis.
Cement sales rose 28% to 103.8 million t, aggregates sales were up 9% and ready-mixed concrete sales were up 16%.
“With the acquisition of Italcementi, we made a big leap in growth and achieved the best operating income since the financial crisis,” said Dr Bernd Schiefele, Chairman of HeidelbergCement’s Managing Board.
Looking ahead, the company is “confident about the future,” said Schiefele, despite increased economic and political risks, with expected growth in the USA particularly benefitting the company. Positive market developments are also expected in Europe and Africa and Asia – although Chinese demand will continue to decline.
The company will also continue to work on integrating Italcementi assets, said Schiefele, as well as on measures to counter cost inflation, such as price rises and efficiency programmes for its cement, aggregates and logistics businesses.
Read the article online at: https://www.worldcement.com/africa-middle-east/14022017/heidelbergcement-sales-jump-on-italcementi-consolidation/
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