Holcim announce third-quarter results
Higher sales volumes in cement, aggregates and ready-mixed concrete but declining operating EBITDA
HOLCIM have reported increased third quarter and nine months sales volumes for cement, aggregates and ready-mixed concrete. Only asphalt declined slightly. Consolidated cement deliveries increased by 5.2% to 108.1 million tonnes by the end of September 2011. Sales of aggregates increased by 9.8% to 130.4 million tonnes and ready-mixed concrete rose by 5% to 36.1 million cubic metres.
However, consolidated net sales decreased by 6.7% to CHF15.5 billion, mainly because of exchange rate factors, although on a like-for-like basis it increased by 5.8%.
The higher demand for materials was accompanied by above-average inflation for energy, transport and raw materials. These cost increases could, for the time being, only partially be passed on to sales prices. However, the Group’s operating EBITDA was also negatively impacted to the amount of CHF458 million by the strong Swiss franc, and by the fact that, contrary to last year, sales of CO2 emissions certificates in Europe are still outstanding.
Operating EBITDA fell by 16.9% to CHF3 billion, but on a like-for-like basis the decline came to a smaller 4.4%, and organic growth reached 1.1% in the third quarter. In particular, the Group companies in Russia, Singapore, Indonesia, Colombia as well as Holcim Australia made larger contributions in Swiss francs to the result.
Signs of a slight improvement in operating EBITDA did start to emerge in the third quarter, as demand clearly increased, particularly in the emerging markets and in North America. As a result of the increase in net current assets, one-off tax refunds in the previous year and lower operating EBITDA, cash flow from operating activities came to CHF930 million.
Looking ahead, the company expects European demand for construction materials to remain solid in many places. In North America, Holcim anticipate a slight improvement in the construction sector. Most emerging markets in Latin America and Asia should remain on track for growth, but no change is anticipated in business conditions in Group region Africa Middle East.
