Good year for HeidelbergCement

HeidelbergCement has reported an increase in sales volumes in all its business lines for the fourth quarter of 2017, with group revenue up by 1%.

It said that its ROCBD (result from current operations before depreciation and amortization) had increased to €892 million from €765 million 12 months earlier – a rise of 16% on a like-for-like basis, said the company.

It added that 2017 had been a record year for sales, revenue and result from current operations. A synergy target for its Italcementi subsidiary had already over-achieved, a year ahead of schedule, it said.

Margins had improved, said HeidelbergCement, despite significant cost inflation and market pressure in Indonesia, UK, and Africa.

It said the synergy target increased from €470 million to €550 million by end of 2018

Dr Bernd Scheifele, chairman of the managing board, said, “We successfully completed the year 2017 despite a very challenging market environment and achieved our operational earnings target.

“The challenges were numerous – energy cost inflation, increased competition in emerging markets, especially in Indonesia, uncertainties following the Brexit decision and bad weather, especially in the US. Nevertheless, we were able to increase our result from current operations as guided.”

He said that a consistent focus on efficiency and margin improvement, and the successful integration of Italcementi that led to higher than expected synergies, had contributed to this success.

“Overall, 2017 was a record year for sales volumes, revenue and result from current operations,” he said.