Results for 3Q13 see profits double for HeidelbergCement

3Q13 results

Sales

• Cement and clinker sales volumes up by 4.1% to 25.3 million t from 24.3 million t in 2012.
• Deliveries of aggregates increased by 6.3% to 73.1 million t, compared to 68.8 million t in 2012.
• Deliveries of ready-mixed concrete rose by 4.5% to 11.0 million m³ from 10.5 million m³ in 3Q12.
• Asphalt sales volumes fell slightly by 0.6% to 2.8 million t, compared to 2.9 million t in 2012.
• In the first nine months of the year, cement and clinker sales volumes increased slightly by 1% to 67.7 million t from 67 million t in the previous year. While deliveries of aggregates decreased by 1.2% to 180.6 million t, deliveries of ready-mixed concrete rose by 2.6% to 29.8 million m³. Asphalt sales declined by 2.5% to 6.4 million t.

Revenue

• Group revenue remained stable at €3.9 billion, a 5% increase on a like-for-like basis in 3Q13.
• Operating income before depreciation (OIBD) decreased by 7% to €811 million, a decrease of 2% on a like-for-like basis.
• Overall profit increased by 97.6% to €627.4 million from €317.6 million in 3Q13.
• Group share of profit increased by 128.6% to €579.8 million from €253.6 million in the previous year.
• Earnings per share improved considerably to €3.10 from €1.36 in 2012.
• In the first nine months of the year, Group revenue remained stable at €10 450 million, reaching €10 525 million in 2012. Operating income before depreciation (OIBD) fell by 0.9% to €1764 million and operating income declined also by 0.7% to €1143 million. Profit for the first nine months rose significantly to €912 million from €403 million in 2012.

Net debt

• At the end 3Q13, net debt amounted to €8billion, €0.2 billion higher than in 3Q12.

Margin improvement programmes

Successful price increases in principal markets.

“FOX 2013“ (three year programme for financial and operational excellence) already achieves full-year target after 9 months, reaching €253 million in cash savings.

Lower energy savings.

Outlook

The Group’s target achievements are predicted to be more challenging due to currency effects. “In view of the weakening economic development and exchange rates in some emerging countries, we will continue unabatedly with our measures to improve margins. We will maintain our focus on increasing sales prices,” said Dr Bernd Scheifele, Chairman of the Managing Board. “Deleveraging with the aim to improve the decisive key financial ratios is still a top priority for us, in order to qualify for an investment grade rating. We will also remain on course with our successful strategy of targeted investments to expand cement capacities in emerging countries. With our global market leadership in the aggregates business line and our advantageous geographical positioning in attractive markets, we will do all we can to benefit over-proportionally from the continued economic growth."

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldcement.com/europe-cis/07112013/results_for_3q13_see_profits_double_for_heidelbergcement_387/