- Equipment World - http://www.equipmentworld.com -
Holcim’s Q1 2012 report: Growing demand for construction materials
Posted By Staff Report On May 9, 2012 @ 7:57 am In Construction News | No Comments
In Holcim‘s first-quarter 2012 earnings report, the company says that due to good economic conditions in Asia and Latin America and growing demand for construction materials in North America and Africa Middle East consolidated cement deliveries increased.
Higher shipments were achieved particularly by the Group companies in India, the US, Thailand, the Philippines and Indonesia as well as in Russia and Azerbaijan.
However, in contrast to last year’s mild climate, the harsh winter brought many construction sites in Western and Eastern Europe to a temporary standstill in February. Hence, sales volumes decreased in this Group region in all segments and impacted first quarter results.
Holcim achieved better prices in various markets. Overall, the Group achieved an operating EBITDA close to last year, and like-for-like operating EBITDA growth reached 5.5 percent.
Consolidated cement sales increased by 6.2 percent to 35.2 million tonnes, and
deliveries of aggregates were down by 7.8 percent to 31.6 million tonnes. Volumes of
ready-mix concrete decreased by 0.3 percent to 10.4 million cubic meters, and asphalt
sales declined by 18.4 percent to 1.4 million tonnes.
With shipments of cement up by more than 1.8 million tonnes, Asia Pacific was well
ahead in terms of volume, mainly due to India. In aggregates, Group region Africa Middle
East achieved the highest growth rate. In ready-mix concrete, North America recorded
the highest volume growth, mainly due to the full incorporation of Lattimore Materials in
Texas in March of last year, and the first-time consolidation of Ennstone in Virginia in
A positive development is the fact that Holcim was able to mostly pass on cost increases
through higher sales prices in all segments and in all Group regions, with the exception of
Africa Middle East.
Consolidated net sales increased by 2.2 percent to CHF 4.8 billion. In absolute terms,
Asia Pacific ranked first with net sales of CHF 2.2 billion.
Operating EBITDA was almost stable with a decline of 1.1 percent to CHF 745 million.
The negative weather effects in Europe could be almost entirely absorbed. It is
worthwhile to note that energy and transport costs somewhat stabilized.
With the exception of Europe, all Group regions performed better. The Group grew like-forlike
by 5.5 percent.
Net income of CHF 116 million almost reached the previous year’s level, and Group net
income attributable to shareholders of Holcim Ltd rose by 1.2 percent to CHF 10 million.
Due to the seasonal pattern of the first quarter, cash flow from operating activities
amounted to a negative CHF 474 million, an improvement of 11.8 percent compared to
the previous year’s reporting period.
The last 12 months have seen net financial debt decrease 4.9 percent to CHF 11.8
billion. The sale of Holcim shares contributed an amount of CHF 296 million.
Holcim expects demand for building materials to rise in emerging markets in Asia and
Latin America, as well as in Russia and Azerbaijan in 2012. A slight improvement for
North America can also be expected. In Europe, demand should remain stable, provided
that the situation is not undermined by further systemic shocks. In any case, Holcim will
accord cost management the closest attention, and pass on inflation-induced cost
increases. Holcim’s approach to new investments will be cautious. Holcim expects that
the Group will achieve organic growth at operating EBITDA level.
Program to further strengthen market and cost leadership. A program to further strengthen market and cost leadership will be announced next week, after the respective measures are concluded at the Group Management Meeting.
The aim is to significantly improve operating profit and therefore to support a higher
return on invested capital.
Article printed from Equipment World: http://www.equipmentworld.com
URL to article: http://www.equipmentworld.com/holcims-q1-2012-report-growing-demand-for-construction-materials/
URLs in this post:
 (For a downloadable PDF-version of the Holcim first-quarter earnings media release, which includes financial tables, click here.: http://www.holcim.com/fileadmin/templates/CORP/doc/Q1_12/Mediarelease_Q1_2012_e_f.pdf
Copyright © 2012 Equipment World -- Development. All rights reserved.