Operating profit increased from negative CHF81 million in 4Q12 to positive CHF559 million in 4Q13. Net income also improved, rising from negative CHF91 million to positive CHF319 million. Operating EBITDA came in at CHF945 million, up 16.3% (+29.7% on a like-for-like basis). Net sales fell by 9% to CHF4.78 billion (+1.5% like-for-like).
Cement sales volumes dropped by 1.9% to 34.6 million t, while ready-mix concrete volumes were down 8.5% to 10 million m3. However, aggregate volumes grew by 1.7% to 39.7 million t.
In the Asia Pacific region, cement sales fell from 18.2 million t in 4Q12 to 17.5 million t in 4Q13. Volumes in Latin America and North America declined slightly from 6.4 million t to 6.3 million t and from 3.1 million t to 3 million t, respectively. In Europe, the group saw a rise in cement dispatches, which rose to 6.4 million t compared to 6.2 million t in the corresponding quarter in 2012. Cement sales volumes also picked up in Africa and the Middle East, increasing from 1.9 million t to 2 million t in 4Q13.
Net sales fell by 6.8% to CHF19.72 billion in full-year 2013, although on a like-for-like basis they increased by 0.2%. Net income grew to CHF1.6 billion, 59.3% higher than the CHF1 billion achieved in 2012. Operating profit also increased, rising from CHF1.75 billion to CHF2.36 billion. EBITDA of CHF3.9 billion was recorded for 2013, up slightly from CHF3.89 billion in 2012. On a regional basis, EBITDA improved in the US, UK, Germany, Ecuador and the Philippines but contracted in India, Mexico, Canada and Brazil.
Total cement sales contracted by 2.4%, falling from 142.3 million t in 2012 to 138.9 million t in 2013. Rising demand in Russia and Azerbaijan helped cement dispatches in Europe rise from 26.3 million t to 26.7 million t. Volumes also improved in Latin America, up 1% to 25 million t. In North America sales were down by 2.8% to 11.7 million t and in Asia Pacific they dropped by 3.6% to 70.3 million t. Meanwhile in the Africa and Middle East region, Holcim’s sales volumes declined by 5.2% from 8.4 million t to 7.9 million t.
Ready-mix concrete deliveries declined by 12.9% to 39.5 million m3 and asphalt sales volumes dropped by 2% to 8.9 million t. Sales of asphalt improved in the UK but this increase was offset by a decline in demand in the US and Canadian markets. Aggregates sales volumes dropped from 158.2 million t in 2012 to 154.5 million t in 2013. Demand levels for crushed stone, gravel and sand grew in North America. However, demand declined in Australia, impacting volumes in Asia Pacific.
“Holcim generated a solid result in the 2013 financial year. Despite difficult market conditions, as a result of which volumes in all three segments were below those recorded last year, the operating EBITDA margin and net income increased due to the consistent implementation of the Holcim Leadership Journey,” said Bernard Fontana, CEO.
Outloook for 2014
- Holcim forecasts a rise in cement sales volumes in all of the regions in which it operates.
- Ready-mix concrete volumes are expected to grow in all regions aside from Europe and Latin America.
- Total aggregates sales volumes will likely remain flat as improvements in Asia Pacific, Europe, North America and Africa Middle East are offset by declines in the Latin American market.
- Operating margins will benefit from the Holcim Leadership Journey programme.
Board of Directors
Holcim’s Board of Directors is to nominate Jürg Oleas for election as a new board member at the annual general meeting on 29 April. Oleas is CEO of GEA Group AG and his previous experience also includes ABB and Alstom Group.
The Board of Directors will also propose that Wolfgang Reitzle be elected as he new Chairman, succeeding Rolf Soiron. Soiron has been a member of the Board for 20 years and Chairman for 11 years.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/26022014/holcim_4q13_2013_results_811/