Holcim report significant rise in operating profit

First-quarter results reveal like-for-like increases in consolidated sales volumes and net sales

HOLCIM have reported a 5.4% fall in net sales across the Group to CHF4.09 billion for the first quarter of 2014, mainly influenced by negative currency effects. On a like-for-like basis, however, net sales were up 7.8%.

Likewise, consolidated operating EBITDA decreased by 5.1% to CHF617 million during the quarter but grew by 10.1% when adjusted for foreign exchange effects and changes in consolidation.

Driven by higher sales, most European Group companies reported higher operating EBITDA and North America as well as Africa Middle East recorded better operating results. Operating profit came to CHF295 million, an increase of 9.3%. On a like-for-like basis the growth in operating profit reached 28.4%.

Net income, which in the first quarter of 2013 benefited from the sale of a 25% stake in Cement Australia, decreased by 39.5% year-on-year and reached CHF179 million. However, adjusted for this transaction in 2013, net income was up by 19.6%.

During the first quarter consolidated cement sales increased by 2.9% to 33.0 million tonnes, aggregate volumes increased by 2.2% to 29.2 million tonnes, ready-mixed concrete volumes contracted by 2.0% to 8.2 million cubic meters, and asphalt volumes reached 1.4 million tonnes, an increase of 23.3%.

Commenting on the results, Holcim CEO Bernard Fontana (pictured), said: ‘Holcim reported a significant increase in operating profit during the first quarter of 2014, mainly driven by higher like-for-like cement volumes in all Group regions and the continued strong momentum of the Holcim Leadership Journey coupled with strict cost management across the Group. Margins continued to increase and cash flow from operating activities was also better than in the first quarter last year.’