In April – June 2013, cement and clinker sales fell 0.8% y/y from 24.5 million t in 2Q12 to 24.3 million t. Results varied across the regional markets in which HeidelbergCement operates. There was growth in Asia-Pacific, North America and the Africa-Mediterranean Basin, while cement sales remained stable in Western and Northern Europe.
Within Europe, cement deliveries increased by 10% y/y in the UK as construction activity in the private residential sector began to pick up. However, poor weather conditions and flooding had a negative impact on sales volumes in Germany and its Eastern European neighbours. In Eastern Europe-Central Asia sales volumes decreased by over 10% y/y, as austerity policies in Poland, Romania and the Czech Republic impacted public infrastructure construction.
Aggregate deliveries dropped from 67.1 million t in 2Q12 to 65.6 million t in 2Q13. Asphalt sales volumes also decreased slightly, falling by 1.1% y/y. Meanwhile, growth in Indonesia and Malaysia helped boost ready-mix concrete sales, with volumes increasing by 4.5% y/y to reach 10.9 million m3.
- Group revenue grew 0.5% y/y to €3.8 million, driven by growth in key markets and price increases in cement and aggregates.
- Operating income before depreciation increased from €696 million in 2Q12 to €734 million in 2Q13.
- Profit before tax from continuing operations reached €415.7 million, marking a 32.3% y/y rise.
- Profit for the quarter was up 91.6% y/y to €468.9 million.
“HeidelbergCement has successfully continued the positive earnings development in the second quarter despite challenging conditions”, said Dr Bernd Scheifele, Chairman of the Managing Board. “The measures we introduced to improve margins are showing results. We were able to implement price increases in our principal markets, and our efficiency improvement programmes are progressing according to plan.”
In January – June 2013, the volume of cement and clinker sold dropped by 0.8% y/y to 42.4 million t. Sales were also down for aggregates and asphalt, falling by 5.7% y/y and 4% y/y, respectively. However, sales volumes of ready-mix concrete increased by 1.6% y/y from 18.5 million m3 to 18.8 million m3.
Profit for 1H13 reached €284.5, up from €85.7 million in 1H12. Operating income before depreciation and operating income both improved, rising by 5.1% y/y and 7% y/y, respectively. However, Group revenue declined by 0.3% y/y to €6.56 billion.
During the first six months of the year, the “FOX 2013” programme led to a €139 million improvement in cash flow, putting it well on its way to achieving a savings target of €240 million in 2013.
In July, a new 0.5 million tpa cement mill was commissioned by HeidelbergCement’s Liberian subsidiary Cemenco. Cemenco is the only cement producer operating in Liberia. The expansion project allows HeidelbergCement to increase its presence in West Africa.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/01082013/heidelbergcement_2q13_1h13_results_84/