Mild winter pushes Holcim sales up

Europe’s mild winter has helped Holcim post increased like-for-like sales volumes across all segments in the first quarter of 2014.

The Switzerland-based global cement and aggregates company reported net sales of CHF4.09 billion (€3.35 billion) across the group, a fall of 5.4%, which Holcim attributed to negative currency effects. On a like-for-like basis, Holcim reported its net sales up 7.8%.

Consolidated operating EBITDA decreased by 5.1% to CHF617 million (€505 million), but grew by 10.1% adjusted for foreign exchange effects and changes in consolidation.

Operating profit came to CHF295 million (€242 million), an increase of 9.3%. On a like-for-like basis the growth in operating profit reached 28.4%.

Bernard Fontana, CEO, said, “Holcim reported a significant increase in operating profit during the first quarter of 2014, mainly driven by higher like-for-like cement volumes in all group regions and the continued strong momentum of the Holcim Leadership Journey, coupled with strict cost management across the group. Margins continued to increase and cash flow from operating activities was also better than in the first quarter last year.”

Consolidated cement sales increased by 2.9% to 33 million tonnes in the first quarter. France, Germany, and Russia reported the strongest increases.

Aggregate volumes increased by 2.2% to 29.2 million tonnes, also due to higher results in Europe. Ready-mixed concrete volumes contracted by 2% percent to 8.2 million m3. Asphalt volumes reached 1.4 million.