HeidelbergCement has announced that earnings per share more than doubled in 2013. “In 2013, we generated our best results since the financial crisis,” said Dr Bernd Schiefele, chairman of the managing board of HeidelbergCement. “This was mainly due to the successful implementation of our ‘FOX 2013’ programme, price increases in major markets, reduced financing costs, and lower non-recurring charges. Consequently, we were able to improve revenue, OI, and operating margins in all our business lines on a comparable basis. At the same time, we clearly achieved our target of noticeable increasing profit for the financial year and earnings per share.”
The FOX 2013 cost-efficiency programme led to cash-relevant savings of €391 million in 2013. With this and price increases, operating income rose by 5.2% before exchange rate and consolidation effects. Profit for the financial year increased by 79% to €945 million. Earnings per share rose to €3.98.
In view of the positive business development and the considerable increase in profit for the financial year, the Managing Board and Supervisory Board will propose to the Annual General Meeting on 7 May 2014 an increase of 28% in the dividend to €0.60 per share.
Going forward, HeidelbergCement expects a continuing recovery in North America and positive developments in Western and Northern Europe. The company reports that the political crisis in Ukraine is not currently affecting operating business in Ukraine and Russia. Sustained growth is anticipated in Asia and Africa. In all, an increase in sales volumes is predicted for 2014 and the managing board is aiming to further increase revenue, operating income and profit for the financial year ahead.
Finally, the Supervisory Board of HeidelbergCement has decided to extend the Managing Board agreements of Dr Bernd Schiefele, Chairman of the Managing Board, and Dr Lorenz Näger, Chief Financial Officer, by five more years.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/19032014/heidelbergcement_has_best_year_since_financial_crisis_914/
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