Holcim has reported its 1H15 results as an independent entity. Lower than expected demand dampened cement sales volumes and financial performance, in spite of higher cash flow generated by the sales of Holcim’s minority share in Siam City Cement and the positive market developments in the UK, US, Mexico and the Philippines.
Cement volumes declined by 2.0% to 67.6 million t, with all group regions except North America and Latin America reporting declines, though key markets such as Romania, the Philippines and Vietnam performed well. Aggregates and ready-mix volumes both improved y/y. The decline is attributed to a mixed global economic environment, with some areas experiencing political and economic uncertainty.
Operating EBITDA was down 3.7%, in part due to merger-related costs of CHF86 million, as was operating profit (down 5.5%). Group companies Aggregate Industries UK, Holcim US, Holcim Mexico and Holcim Spain reported increases in like-for-like financial performance, but this was offset by the less favourable development in Indonesia, at Ambuja Cements, in Switzerland and in France. Like-for-like net sales were almost unchanged from 1H14, while net income was up 4.9% thanks to the divestment of Siam City Cement.
In 1H15, the Holcim Leadership Journey contributed CHF138 million to Group operating profit. The Customer Excellence Stream contributed CHF36 million and the cost initiatives CHF102 million to this result.
Adapted from press release by Katherine Guenioui