Holcim facing €422 million charge

Cement, aggregates, ready-mixed concrete and asphalt producer Holicm expects to book CHF510 (€422 million) in fourth quarter charges and write-downs related to the restructuring of its European business.

The company has introduced a leaner management structure for Europe to better adapt to lower levels of construction activity, while its European operations are also adjusting their production capacity.

Holcim said the additional cash costs for restructuring in the fourth quarter of 2012 would total CHF100 million (€83 million), while write-offs on property, plant and equipment would total CHF410 million (€339 million). It said these costs would be charged in its fourth quarter results.

These measures are expected to lead to annual cost savings of at least CHF120 million (€99 million), and contribute to more efficient usage of the company's capacity and capital expenditure in Europe.