Heidelberg increases sales for quarter

The latest results from Heidelberg Cement have shown year-to-date revenue growth of 3% with increased sales across its business.

Its figures for January to September this year were €10.12 billion, against €9.86 billion for the same period last year.

The German-based company’s third quarter revenue growth of 4% to €3.8 billion has resulted in a positive outlook for the remainder of 2014.

However, its year-to-date profits stood at €599 million, down 34% from 2013’s performance. Its year-to-date operating income rose 11% to €1.24 billion, compared to last year’s figure of €1.12 billion. The company also reduced its net debt from €7.87 billion to €7.62 billion.

According to its trading statement, the firm said strong sales volumes of building materials in key markets including North America, the UK, Eastern Europe and Asia had resulted in an overall positive performance for the company.

It had opted to withdraw from bidding for assets being offered by the Lafarge and Holcim (ahead of the two other companies' plans to merge, which is being examined by regulators).

Heidelberg’s results so far this year included a 5% increase in cement and clinker sales volumes to 62.9 tonnes. This was matched by a further 5% increase in aggregates deliveries to 180 million tonnes, and a 5% increase in delivery of ready-mix concrete to 27 million cubic metres.

Company chairman of the managing board, Dr Bernd Scheifele, said its “best operating income since the financial crisis,” had been achieved through a price increase strategy and strict cost management.

He said, “In 2014, we benefit from the economic development in the industrial countries, particularly in North America and the United Kingdom, but also in Germany and Northern Europe.

“These countries generate almost 50% of our revenue. Furthermore, we are improving our market position in growth markets with the commissioning of modern production facilities.

“In view of these factors as well as our high operational efficiency, we consider ourselves well-equipped to benefit over-proportionally from the accelerating economic growth in the interests of our shareholders.”