HeidelbergCement releases preliminary results for 4Q13 and FY13

HeidelbergCement has released its preliminary, unaudited figures for sales volumes, revenue, operating income before depreciation (OIBD) and operating income (OI) for 4Q13 and FY13.

Results for 4Q13 

• Revenue remained stable at €3.5 billion, increasing by 6.9% on a like-for-like basis.
• Operating income improved by 2.4% y/y to €463 million, a 12.4% rise on a like-for-like basis.
• Operating margin increased to 13.3% in 4Q13 from 12.9% in 4Q12.
• Sales of clinker, cement and ground granulated blastfurnace slag (GGBS) rose by 7.5% y/y to 23.6 million t in 4Q13 from 21.9 million t in 4Q12.

Results for FY13

• Revenue remained stable at €14 billion, a 3.4% rise on a like-for-like basis.
• Operating income was slightly above that of FY12 at €1.61 billion, increasing by 5.2% on a like-for-like basis.
• The company witnessed a marginal increase in operating margin in FY13, which rose to €1.607 billion from €1.604 billion in FY12.
• Sales of clinker, cement and GGBS increased from 89 million t in FY12 to 91.3 million t in FY13, a rise of 2.6% y/y.
• The “FOX 2013” programme exceeded expectations, achieving €1.158 billion in cash-relevant savings over the three-year period (the original target was €600 million).

Cement sales volumes rose in 2013, in line with the outlook presented in the 2012 Annual Report, as a result of the continuing recovery in North America and the additional capacities that became available in India, Africa, Russia and Australia. The emerging recovery in the United Kingdom also had a positive impact.

“2013 was a successful year for HeidelbergCement in operational terms,” said Dr. Bernd Scheifele, Chairman of the Managing Board. “We continued to benefit from our advantageous geographical positioning, kept our costs under control and were able to implement price increases in major markets. Our three-year “FOX 2013” programme once again exceeded expectations and led to cash-relevant savings totalling around €1.2 billion. As a result, we were able to noticeably increase revenue and OI before exchange rate effects and further improve our operating margin. Unfortunately, this achievement was masked by massive negative exchange rate effects. Nevertheless, our OI came in slightly above the previous year.”

Global economic outlook for 2014

In its forecast from January 2014, the International Monetary Fund (IMF) expects global economic growth to experience a significant increase during 2014 in comparison with 2013. The main contributors to this development are the increasing pace of economic growth in the US and the economic recovery in almost all countries of the euro zone. Despite this, the necessary budgetary consolidation measures in the industrial countries and their influence on the emerging countries continue to threaten the development of the world economy. The lessening of the Federal Reserve may lead to further outflows of capital and exchange rate adjustments. The IMF believes that the stimulation and safeguarding of economic growth should have priority worldwide.

Regional outlook for 2014

• HeidelbergCement expects a continuing economic recovery and a further rise in demand for building materials in North America. Residential construction, commercial and infrastructure construction will contribute to this growth.
• In Eastern Europe, a stabilisation of the markets is anticipated following the weak phase experienced during 2013 and a further rise in demand for building materials is expected in Central Asia.
• Positive market development is expected in all countries in Western and Northern Europe. This is based on the healthy economic development in Germany and Northern Europe, as well as a recovery in the United Kingdom and Benelux.
• The Group expects sustained growth in demand in Asia and Africa.

Read HeidelbergCement’s full release here.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/europe-cis/06022014/heidelbergcement_releases_preliminary_results_for_4q13_and_fy13_702/