HeidelbergCement reports broadly positive 2017

Sales of clinker and cement posted a 22% jump over the year on the back of Italcementi’s consolidation into the business. On a like-for-like basis, however, sales were up only slightly, at 1.2%. Geographically, sales of cement and clinker were up across the board, with the exception of Western and South Europe.

“The challenges were numerous,” said Chairman of HeidelbergCement’s Managing Board, Dr Bernd Scheifele, pointing to energy cost inflation, increased competition in emerging markets, uncertainties following Brexit, and bad weather in the US. “Nevertheless, we were able to increase our result for current operations as guided.”

Like-for-like revenue was up 2.1% over the year at €17.3 billion, while the result from current operations before depreciation and amortisation was up 5.5% at €3.3 billion.

“Apart from the revenue growth, the effective management of energy costs and the significant overachievement of the synergy targets relating to the Italcementi acquisition, contributed particularly to this positive development,” the company said.

HeidelbergCement also saw positive signs in its aggregates business, where sales volumes were up 6.2% on a like-for-like basis at 305 million t. Asphalt sales were also up 2.8%, but ready-mixed concrete sales were down slightly by 1.8% at 48 million t on the back of falls in Western and Southern Europe and Asia-Pacific.

“Overall, 2017 was a record year for sales volumes, revenue, and result from current operations,” concluded Dr Scheifele.

Read the article online at: https://www.worldcement.com/europe-cis/20022018/heidelbergcement-reports-broadly-positive-2017/