Successful year for HeidelbergCement
Like-for-like increases in revenue and operating income for year to end of December 2013
HEIDELBERGCement report that although solid operational development was masked by significant negative exchange rate effects, 2013 was a successful year for the firm. For the year ended 31 December, the company reported revenue stable at €14 billion but up 3.4% like for like, while operating income was slightly above previous year at €1.61 billion and up 5.2% like for like.
For the fourth quarter of 2013, revenue was stable at €3.5 billion but up 6.9% like for like, while operating income improved by 2.4% to €463 million, an increase of 12.4% on a like-for-like basis.
Cement sales volumes rose in 2013 as a result of the continuing recovery in North America and additional capacities that became available in India, Africa, Russia, and Australia, as well as a positive impact from the emerging recovery in the UK. Aggregates volumes remained slightly below the level of the previous year.
The company said its ‘FOX 2013’ programme had exceeded expectations, achieving €1,158 million in cash-relevant savings over the three-year period against an original target of €600 million.
Dr Bernd Scheifele, chairman of the managing board, said: ‘2013 was a successful year for HeidelbergCement in operational terms. We continued to benefit from our advantageous geographical positioning, kept our costs under control, and were able to implement price increases in major markets.
‘Our three-year ‘FOX 2013’ programme once again exceeded expectations and led to cash-relevant savings totalling around €1.2 billion. As a result, we were able to noticeably increase revenue and operating income before exchange rate effects and further improve our operating margin.
‘Unfortunately, this achievement was masked by massive negative exchange rate effects. Nevertheless, our operating income came in slightly above the previous year.’
Looking forward, Dr Scheifele (pictured) said that considering the positive outlook for the world economy and HeidelbergCement’s advantageous geographical positioning, the company was cautiously confident about the future.
‘In 2014, we will benefit from the economic development in the industrial countries, in particular in North America, the UK, Germany, and Northern Europe. We achieve nearly 50% of our revenue in these countries,’ he commented.
‘In addition, we are improving our market position in growth markets with the commissioning of modern production facilities. Complemented by our high degree of operational efficiency, we consider ourselves well-equipped to face the opportunities and challenges of 2014.’
