HeidelbergCement has partially adapted its assessment of the current business year in light of preliminary numbers for 3Q18.
Revenue of the first nine months and sales volumes have developed with expectations and guidance for the full year remains unchanged.
However, the outlook for the 2018 result from current operations is adapted on a low- to mid-single digit percentage decline, where it was previously a mid- to high-single digit percentage increase. This is before depreciation on a like-for-like basis, adjusted by currency and consolidation effects.
The reasons given for the adjustment are persistent adverse weather conditions in the US and an energy cost inflation that significantly exceeded expectations, and which could only be partially compensated for by price increases over the course of the year. As a result, HeidelbergCement expects that the ratio of net debt to RCOBD (leverage) at yearend will amount to more than the originally projected value of 2.5.
Final results for 3Q18 and the first nine months will be published on 8 November and the company assumes that the Group share of the profit for 2018 will be in line with market expectations.
HeidelbergCement is one of the world’s largest integrated manufacturers of building materials, with leading market positions in aggregates, cement, and ready-mixed concrete.
Read the article online at: https://www.worldcement.com/europe-cis/19102018/heidelbergcement-adapts-outlook-for-2018/