The group’s quarterly operating EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by 17% on a like-for-like basis with nearly flat revenue, leading to significant margin improvement. Heidelberg Cement’s COPE action plan is also fully on track – with cash savings of €721 million in the first nine months of 2020. Free group cash flow over the last twelve months has increased by almost 50% to €2.3 billion, while net debt has reduced by €1.8 billion compared to September 2019.
HeidelbergCement now anticipates that the result from current operations before depreciation and amortisation for the whole of 2020 will exceed that of the previous year.
For the future, the group anticipates continued good prospects for sustainable and profitable growth in the medium- to long term. HeidelbergGroup also believes that construction activity in individual core markets may benefit in the medium term from infrastructural and other economic stimulus programmes announced by governments.
Commenting on the group’s third-quarter and 1 January to 30 September 2020 trading, Dr. Dominik von Achten, chairman of the managing board of HeidelbergCement, said: “HeidelbergCement has achieved an excellent result in the third quarter of 2020. In an environment that continues to be characterised by major regional differences and great uncertainty, we were able to increase EBITDA by 17% in comparison with the previous year.
“The broad regional setup and strong cohesion within our company are paying off. All Group areas contributed to the improvement in results. The measures launched in February as part of our COPE action plan are taking effect. Since the programme was launched, we have achieved group-wide cash savings of over €700 million, exactly in line with our plan. All measures have been and continue to be focused on health protection for our employees, customers and service providers.
“I would like to express my special thanks to all our employees around the world, who have made this good result possible with extraordinary commitment and under sometimes difficult conditions.
“The strong figures speak for themselves. As a result of the very strong development of results in the third quarter of 2020, we anticipate that operating EBITDA for the full year 2020 will be above the previous year. HeidelbergCement is very well positioned, even for difficult times. When the economy picks up again, and construction activity in our markets returns to normal, we will have very good prospects for sustainable and profitable growth. We will seize the growth opportunities that present themselves.”
The effects of the coronavirus pandemic hampered construction activities and the associated demand for HeidelbergCement building materials worldwide in the first nine months of 2020.
Group-wide cement and clinker sales volumes fell by 4.7% to 90.1 million tonnes (previous year: 94.5mt) in the first nine months. Excluding consolidation effects, the decline amounted to 4.0%. On a like-for-like basis, deliveries in the Africa-Eastern Mediterranean Basin Group area recorded a solid increase. In Northern and Eastern Europe-Central Asia, sales volumes remained at the previous year’s level. Volumes declined in the other Group areas.
Deliveries of aggregates were 5.3% below the previous year’s level at 220.8 million tonnes (previous year: 233.3mt). A slight increase in sales volumes in Northern and Eastern Europe-Central Asia stood in contrast to significant decreases in volumes in Western and Southern Europe, Asia-Pacific, and Africa-Eastern Mediterranean Basin, while North America remained only slightly below the previous year. Excluding consolidation effects, sales volumes declined by 4.6%.
Sales volumes of ready-mixed concrete fell by 9.2% to 34.4 million m³ (previous year: 38mn m³). Except for North America, where deliveries were slightly above the previous year, volumes declined in all group areas. Excluding consolidation effects, deliveries of ready-mixed concrete declined by 9.5%. Asphalt deliveries decreased by 3.6% to 8.1 million tonnes (previous year: 8.4mn tonnes). Adjusted for consolidation effects, deliveries fell by 5%
