Successful 2014 for HeidelbergCement
Firm in best shape for 15 years with increases in revenue and operating income, and net debt reduced
DESPITE a challenging environment in 2014, HeidelbergCement brought their financial year to a successful close with sales revenue up 4% to €12.6 billion (up 8% on a like-for-like basis) and operating income up 5% to €1.6 billion (up 13% like for like).
Profit for the year ended 31 December 2014 decreased by €246 million to €687 million, however the previous year’s figure of €933 million included numerous non-recurring effects amounting to around €420 million. Adjusted for these effects, HeidelbergCement say the profit for 2014 improved substantially, surpassing the forecast published in their 2013 annual report.
Net debt was reduced by €378 million in 2014 to €6.9 billion, not including the proceeds of more than €1.2 billion from the recent sale of the company’s building products business.
HeidelbergCement said the decisive factors in their 2014 achievements included the Group’s geographical positioning in countries experiencing solid economic development in North America, Europe, Asia, and Africa, successful price increases in major markets, and the successful implementation of margin-improvement programmes.
Commenting on the results, Dr Bernd Scheifele (pictured), chairman of the managing board, said: ‘HeidelbergCement is in the best shape of the last 15 years. Revenue and operating income are experiencing a definite growth trend, and with the sale of the building products business we have successfully repositioned the company towards our core products, cement and aggregates, as well as ready-mixed concrete and asphalt.
Taking into account the selling proceeds, we have reduced net debt by almost €9 billion since the end of 2007 to noticeably less than €6 billion, thereby clearly falling below the goal of €6.5 billion we communicated to the capital market.’
Last year all business lines improved their sales volumes year on year, with the figures for cement and aggregates up in all Group areas. Overall, cement and aggregates sales volumes increased by 5% to 81.8 million tonnes and by 6% to 243.6 million tonnes respectively. Ready-mixed concrete was up 5% to 36.6 million cubic metres and asphalt was up 11% to 9.3 million tonnes.
On the outlook for 2015, HeidelbergCement believe they are well positioned to benefit over-proportionally from the continued economic recovery, particularly in the US and the UK. Growth in sales volumes of cement, aggregates and ready-mixed concrete are expected to continue, while revenue, operating income and net profit are expected to rise significantly.
‘We are confident about 2015,’ continued Dr Scheifele. ‘The outlook for the global economy is positive, but there are still macroeconomic and especially geopolitical risks. We will continue to benefit from the positive development in North America, the UK, Germany, and Northern Europe. These countries generate almost 50% of our revenue.
He added: ‘The considerable drop in the oil price and the weaker euro will provide us with additional tailwind. The results of the first two months in 2015 confirm our outlook.’
