HeidelbergCement sees profits double

HeidelbergCement has enjoyed a successful third quarter despite encountering challenges with exchange rates as a result of the continued strength of the Euro.

The cement producer reported profit before tax of €721 million, a substantial gain of more than 70% on its third quarter 2012 figure of €423. Net income also jumped, almost doubling from €324 million in 2012 to €628 million for the third quarter of 2013.

Revenue remained steady at €3.9 billion, while operating income showed a slight decline, from €647 in the third quarter of 2012 to €603 in the third quarter of 2013.

According to HeidelbergCement, sales volumes improved in all business lines compared with the third quarter of 2012 as a result of the continued recovery of demand for construction materials in Europe and North America, as well as the sustained growth in Asian and African countries.

During the third quarter, the group’s cement and clinker sales volumes increased by 4.1% to 25.3 million tonnes (24.3 million tonnes the previous year), while deliveries of aggregates rose significantly by 6.3% to 73.1 million tonnes (68.8 million tonnes in previous year).

Deliveries of ready-mixed concrete rose by 4.5% to 11.0 million m³ (10.5 million m³ a year before).

Asphalt sales volumes fell slightly by 0.6% to 2.8 million tonnes (2.9 million tonnes 12 months earlier).

Figures for the nine months up to 30 September, 2013, also showed similar growth. Profit before tax rose 65% from €590 million to €975 million, while net income more than doubled from €404 million to €816.

Revenue for the nine months held steady at €10.5 billion, as did operating income, which remained at €1.1 billion.

Dr Bernd Scheifele, chairman of the managing board, said, “The positive development of sales volumes, prices and costs shows that we continue to be operationally well on track. Thanks to the cost savings measures implemented at an early stage, we see a significant increase in results in North America and the UK.

“On a group level, however, we had to face growing headwind in revenue and operating income in the third quarter, due to the significant strengthening of the Euro.”