The €3.22 billion (US$4bn) takeover of Italcementi, announced in 2015, was part of HeidelbergCement’s push to expand in growth markets and keep up with larger French-Swiss rival
HeidelbergCement expects economic growth in North America, Europe and Asia to fuel building material sales this year, and cost savings from the Italcementi acquisition to reach €550 million by the end of 2018. This is up considerably from a previous target of €470 million, which the group had already exceeded at the end of 2017, lifting its shares 1.5%.
Italcementi has given HeidelbergCement a bigger presence in several markets, including Egypt, where it saw significant savings “due to the realisation of synergies and the adjustment of the fuel-mix due to the commissioning of a new coal mill”.
Based on preliminary figures, its Q4 2017 trading from current operations before depreciation and amortisation (RCOBD) rose 16.5% to €892 million, helped by higher cement and clinker sales, beating the €855 million forecast by analysts.
“The consistent focus on efficiency and margin improvement and the successful integration of Italcementi that led to higher-than-expected synergies contributed to this success,” HeidelbergCement CEO Bernd Scheifele said in a statement.
HeidelbergCement said demand for building products in Indonesia, its largest market, rose last year due to the start of infrastructure projects but was accompanied by pricing pressure.
It said construction activity fell in Britain as a result of uncertainty related to its decision to exit the
