HeidelbergCement report first-quarter results
Company announces 19% rise in turnover thanks to milder winter in Europe and stronger than expected economic revival
BENEFITING from a milder winter and catch-up effects following the heavy snow in December, together with a stronger than expected economic recovery in the European and Central Asia markets, HeidelbergCement have reported an 19% increase in group turnover to €2.6 billion in the first quarter of 2011, compared with the same period of 2010. Likewise, operating income before depreciation (OIBD) rose 48% to €253 million (2010: €171 million).
HeidelbergCement said the increased turnover was primarily down to a significant rise in sales volumes in all business lines. Deliveries of aggregates across the group increased by 14.9% to 46.3 million tonnes (2010: 40.3 million tonnes), while ready-mixed concrete deliveries rose by 20.6% to 8.4 million cubic metres (2010: 6.9 million cubic metres) and asphalt sales volumes were up 16.7% to 1.6 million tonnes (2010: 1.4 million tonnes).
The outlook for 2011 is expected to be a continuation of the global economic recovery, although at a weaker rate than in 2010. Growth rates in the emerging countries of Asia and Africa are expected to remain significantly above those of the mature markets in North America and Europe.
HeidelbergCement also expect a rise in energy and commodity prices, as well as soaring inflation. In addition, the company anticipates rising personnel costs in the mature markets. HeidelbergCement’s aim is to offset the rises in costs through further cost-saving measures as well as targeted price increases, including fuel surcharges in individual markets.
