Sales volumes, revenue and result from current operations reached historically high levels in 2017
PRELIMINARY figures for the full year ended 31 December 2017 reveal that sales volumes, revenue and result from HeidelbergCement’s current operations all reached historically high levels.
The Group’s cement and clinker sales volumes rose significantly last year as a result of the consolidation of Italcementi, up 22% to 126 million tonnes (2016: 103 million tonnes), while aggregates sales volumes recorded growth of 12% to 305 million tonnes from 272 million tonnes in 2016. Ready-mixed concrete volumes in 2017 increased by 11% to 47 million tonnes (2016: 43 million tonnes).
Revenue and results of current operations before (RCOBD) and after depreciation and amortization (RCO) also increased significantly as a result of the consolidation of Italcementi.
Revenue rose by 14% to €17.3 billion (2016: €15.2 billion) and RCOBD also improved by 14% to €3.3 billion (2016: €2.9 billion), with price increases, consistent cost management and the realization of synergies from the Italcementi integration contributing to the result improvement, on top of the consolidation effects.
HeidelbergCement’s synergy target of €470 million by end of 2018 was exceeded by the end of 2017, reaching €513 million. Due to the successful integration, the synergy target has been raised to €550 million by end of 2018.
‘We successfully completed 2017 despite a very challenging market environment and achieved our operational earnings target,’ said Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement.
‘The challenges were numerous: energy cost inflation, increased competition in emerging markets, especially in Indonesia, uncertainties following the Brexit decision and bad weather, especially in the US.
‘Nevertheless, we were able to increase our result from current operations as guided. The consistent focus on efficiency and margin improvement and the successful integration of Italcementi that led to higher than expected synergies contributed to this success. Overall, 2017 was a record year for sales volumes, revenue and result from current operations.’
Looking ahead, Dr Scheifele said: ‘In 2018, we will benefit from the economic development in the US and the continued recovery in the Eurozone. With our strong positioning in raw material reserves and production sites at attractive locations, our unique vertical integration, and excellent product portfolio, as well as our margin management, which is best in class in our industry, we believe that we are well equipped for the opportunities and challenges of 2018.’
