HeidelbergCement achieves significant increase in results

The continued recovery of the construction industry in North America and Europe as well as a trend reversal in Asia, particularly in Indonesia, has contributed to a positive development of sales volumes in the first quarter. In the North America Group area, sales volumes for cement and aggregates even grew in the double-digit percentage range. The development in the North and South regions, as well as in Canada for aggregates, was particularly pleasing. In Europe, sales volumes for cement increased in Germany, Benelux, Northern Europe, and Romania. While cement sales volumes rose in all countries of Asia, they remained at approximately the previous year’s level in Africa. In Indonesia, the demand situation improved following the delayed start to infrastructure projects.

The Group’s cement and clinker sales volumes rose by 4.5% to 17.6 million t (previous year: 16.8). Deliveries of aggregates across the Group amounted to 49.3 million t (previous year: 46.3), representing an increase of 6.5%. Deliveries of ready-mixed concrete rose marginally by 1.3% to 8.0 million m3 (previous year: 7.9). Asphalt sales volumes fell by 11.9% to 1.4 million t (previous year: 1.6).

Group revenue remained virtually stable in the first quarter of 2016 at €2832 million (previous year: 2835). Excluding consolidation and exchange rate effects, the increase amounted to 0.9%. This primarily reflects the positive development of sales volumes of cement, aggregates, and ready-mixed concrete. Changes to the scope of consolidation of €57 million had a positive impact on revenue. Exchange rate effects, however, reduced revenue by €83 million.

Operating income before depreciation (OIBD) improved by 7.2% to €321 million (previous year: 299). Operating income increased significantly by 19.9% to €138 million (previous year: 115). Excluding exchange rate and consolidation effects, the rise in operating income before and after depreciation and amortisation amounted to 13.0% and 34.9%, respectively. Besides the growth in sales volumes and price increases in core markets, the declining cost of fuels in particular also made a contribution to the positive development of results.

Adapted from press release by Joseph Green

Read the article online at: https://www.worldcement.com/europe-cis/04052016/heidelbergcement-achieves-significant-increase-results-32/