Holcim report half-year results
Rising cement volumes, higher operating EBITDA and 2012 organic growth continues
HOLCIM have reported a 4.4% increase in consolidated sales of cement, to 74 million tonnes, for the first half of 2012, compared with the same period last year, driven largely by emerging markets in India, the Philippines, Thailand and Indonesia, as well as established markets of the US and Mexico.
With the exception of Russia and Azerbaijan, this positive picture contrasts with the negative market development in Europe, caused by the debit crisis. Consolidated net sales and operating EBITDA were up 2.1% and 1.9% to CHF 10.4 billion and CHF 1.9 billion, respectively, in the first half of the year, despite the poor state of the European market and restructuring costs in markets such as Spain, UK, Brazil and Mexico of CHF 37 million.
Higher sale volumes, price increases and cost-cutting measures allowed Holcim to improve their operating EBITDA in the second quarter of 2012, while all group regions achieved organic growth apart from Europe and Africa Middle East.
Holcim expect demand for construction materials to rise in emerging markets in Asia and Latin America, as well as in Russia and Azerbaijan, for the rest of the year. The company also expects to achieve organic growth in 2012 on the level of operating EBITDA and to reap the first positive effects of the ‘Holcim Leadership Journey’.
