HeidelbergCement reported a 4% rise in second quarter revenue to €4.8 billion, as volumes across the company’s four product lines increased. Stripping out the impact of adverse currency changes, revenue rose 9.4%. Revenue for the first half of the year was up 6.0% on a like-for-like basis.
Earnings recovered from a difficult first quarter to finish 3.4% higher on a like-for-like basis on 2Q17. Energy costs per tonne of cement rose only 5% in the second quarter, compared to an 11% rise in the first three months of the year.
This rise in costs saw HeidelbergCement’s margins fall in its cement business by 201 basis points to 18.4%. This compares to an EBITDA margin of 20.4% in 1H17. As a result, over the first six months of the year, earnings were down 4.6% on a like-for-like basis at €1.188 billion.
Cement volumes were up 4% on a like-for-like basis in the quarter at 33.7 million t. Over the first half year, volumes were up 3% on a like-for-like basis at 61.9 million t. Volumes of aggregates, ready-mixed concrete, and asphalt also rose through the reporting period.
“The growth of revenue and sales volumes in all business lines reflects the strong market dynamics,” said the Chairman of the Managing Board, Dr Bernd Scheifele. “We expect the business development to further improve in the second half of the year and confirm our outlook for 2018.”
The company is targeting an increase in volumes across all business lines, as well as mid to high single digit organic growth in operational EBITDA. Net CAPEX will be limited to €1.1 billion – of which €700 million is assigned to maintenance and €400 million to capacity expansion. Energy cost per tonne of cement is expected to be in the mid single-digit range.
Read the article online at: https://www.worldcement.com/europe-cis/31072018/heidelbergcement-reports-volume-growth-in-2q18/