LafargeHolcim announces Q4 and FY 2015 results
Published by Joseph Green,
LafargeHolcim has announced the company’s Q4 and FY 2015 results.
- CHF 813 million free cash flow drives CHF 1 billion of debt reduction in fourth quarter, despite continuing challenging conditions in selected markets.
- Merger on track and integration largely completed: 2015 targets on capex, synergies and net debt were exceeded.
- More than one third of divestments secured and the remainder of the program is on track.
- 2018 targets confirmed with 2016 to show solid progress towards these objectives based on the combined effect of synergies, additional cost reductions and a strengthening pricing environment.
- Proposed dividend of CHF 1.50 per share.
- Q4 Net Loss at CHF 2.86 billion includes CHF 3.0 billion impact of asset impairment and other charges.
- Q4 Free cash flow of CHF 813 million after adjusting for one-off items of CHF 166 million.
- Net debt level at CHF 17.3 billion.
Eric Olsen, CEO of LafargeHolcim, said: “In a challenging environment in selected markets, we have exceeded all our 2015 commitments in terms of capex, synergies, and net debt reduction. Our focus on cash flow delivered solid results in Q4. We have also made significant progress on our divestment plan, while accelerating the pace of integration across the group and cost management actions.
“Many of the key elements of the merger are now behind us. Our organisation is in place; synergies will continue to gain momentum in 2016 with notably more than CHF 450 million of incremental EBITDA synergies expected for this year; and we have taken decisive actions to further adjust and streamline our costs, notably in the most difficult markets.
“Overall, we see demand in our markets growing 2 – 4 % during 2016. Emerging markets will continue to grow overall, supported by their strong long-term fundamentals and despite the challenging evolution in some of these markets. Given our footprint, we are well placed to benefit from the dynamic conditions in many of our key markets.
“We expect to see the combined effect of synergies, additional cost reductions and a strengthening pricing environment driving solid progress towards our 2018 objectives. Free cash flow generation is the key measure of our value creation strategy. With strict capital allocation discipline and the maximisation of our cash flow, we are committed to maintaining solid investment grade rating and returning cash to shareholders.”
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/europe-cis/17032016/lafargeholcim-announces-q4-fy-2015-results-710/
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