HeidelbergCement increases revenue and results in the third quarter

In the third quarter, the sales volumes of building materials developed rather differently in the individual markets due to a variety of factors. While the cement sales volumes did not quite reach the previous year’s level, partly due to adverse market conditions, the aggregates sales volumes continued to grow. Overall, the sales volumes reached about the same level as the previous year.

During the third quarter, the HeidelbergCement’s cement and clinker sales volumes fell by 3% to 21.8 million t (previous year: 22.5). Whereas Africa was able to register double-digit growth, volumes in the other Group areas remained stable or declined slightly. In Asia, the delayed start of the infrastructure projects announced by the Indonesian government had a negative impact on our sales volumes. Cement sales volumes decreased in the Eastern Europe-Central Asia Group area and Russia, in particular, due to a downturn in investments. In the Western and Northern Europe Group area, especially the Netherlands and the Baltic States recorded a decline in sales volumes. In North America, deliveries remained more or less at the previous year’s level despite the bad weather in Texas and the unfavourable timing of building projects in Florida.

Deliveries of aggregates increased by 1% to 72.6 million t (previous year: 72.1). Higher sales volumes, particularly in the North America and Eastern Europe-Central Asia Group areas, contributed to this development. The deliveries of ready-mixed concrete fell slightly by 1% to 9.7 million m3 (previous year: 9.8). Asphalt sales volumes dropped by 8% to 2.9 million t (previous year: 3.1).

In the first nine months of 2015, cement and clinker sales volumes decreased by 1% to 60.6 million t (previous year: 61.3). Deliveries of aggregates increased by 3% to 186.0 million t (previous year: 180.8), and deliveries of ready-mixed concrete also rose slightly to 27.1 million m3 (previous year: 27.0). Asphalt sales volumes remained stable at 6.9 million t.

Group revenue rose by 3% in the third quarter to €3606 million (previous year: 3490). Excluding consolidation and exchange rate effects, revenue decreased by 1.9%. While the effects from changes in the consolidation scope to the amount of €23 million were negligible, the weakening of the euro against numerous currencies amounting to €162 million in total had a positive impact on the development of revenue. Compared with the previous quarter, however, exchange rate effects had considerably less impact.

Operating income before depreciation (OIBD) improved by 8% to €865 million (previous year: 803), and operating income also rose by 8% to €675 million (previous year: 627). Adjusted for exchange rate and consolidation effects, operating income could be improved both before and after depreciation by 3%, respectively. Besides the price increases in key core markets and the successful implementation of the margin improvement programmes in the aggregates business line, in particular, the low cost of fuels 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/05112015/heidelbergcement-increases-revenue-results-third-quarter-919/