HeidelbergCement has announced its financial results for the first quarter of 2012. Group revenue increased by 8% to €2.8 billion due to growth in North America and Asia. However, rising energy, maintenance and freight costs contributed to a 16% decline in operating income before depreciation, which fell to €214 million. The company’s net debt was reduced by €248 million compared to 1Q11.
Cement sales 1Q12
Cement and clinker sales grew by 5% to 18.2 million t, driven by the North American, African and Asian markets. In North America, mild weather and the gradual economic recovery had a positive impact on cement sales volumes, whilst the Asia-Pacific region also displayed a double-digit growth rate as the markets continue develop. Although higher production capacities in Poland and Russia resulted in higher cement sales in Eastern Europe-Central Asia, sales in Western and Northern Europe were affected by the cold weather in February, which led to a fall in sales.
In January, a new 0.8 million t cement mill was commissioned in Chittagong, Bangladesh. Towards the end of March, the company completed capacity expansion at the Górazdze cement plant in Poland after installing a new 1.4 million tpa ball mill – the biggest ball mill in Europe. HeidelbergCement plans to increase its cement capacity by a further 10 million t in 2012 – 2013.
Cement outlook 2012
- HeidelbergCement anticipates economic growth in Western and Northern Europe. However, due to February’s cold snap, the company predicts a slight fall in sales volumes compared to 2011.
- Growth is expected in Eastern Europe-Central Asia due to recent capacity expansion and high demand in Russia, Ukraine and Central Asia.
- In North America, increased investment in the construction industry in likely to drive sales.
- The Group expects sustained growth in Asia-Pacific and the Africa-Mediterranean Basin.
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/03052012/heidelberg_cement_results_sales_profits/