eidelbergCement has reported its results for the second quarter of 2017, saying that the acquisition of
“In the light of the difficult general conditions, we achieved a good result in the second quarter,” says Dr Bernd Scheifele, Chairman of the Managing Board.
“We were able to almost offset the effect of higher energy costs, bad weather conditions, fewer working days, and increased competition in some emerging countries.
“The synergies from the Italcementi acquisition are clearly visible in the results. Thanks to the ongoing refinancing of our maturities at more favourable terms, we could further improve the financial result and thereby make an important contribution to the further rise in our cash flow.
“All in all, we have again increased the group share of profit for the period despite the challenging environment.”
The Q2 report shows that sales volumes were 33 million tonnes of cement (+47%); 81 million tonnes of aggregates (+18%), and 12 million m³ of ready-mixed concrete (+22%).
Revenue was up by 29% to €4.6 billion (previous year: €3.6 billion), and the result from current operations before depreciation and amortisation improved by 22% to €964 million (previous year: €791 million).
The financial result increased by €8 million to €-99 million (previous year: €-107 million) while earnings per share improved by 7% to €1.80, and in the first half of 2017, group share of profit increased by 17% to €288 million.
The synergy target of €175 million for 2017 was achieved in June.
Heidelberg Cement says its outlook for 2017 remains unchanged, with a positive outlook for global economy but higher geopolitical and macroeconomic risks.
Growth in sales volumes of cement, aggregates, and ready-mixed concrete is expected with a moderate increase in revenue and mid-single to double-digit percentage increase in result from current operations on a comparable pro-forma basis (with the inclusion of Italcementi in the first half of 2016 and adjusted for currency and consolidation effects).
The group says its expects a significant rise in profit for the financial year before non-recurring effects, and that it is well positioned to benefit from good and stable development in industrial countries, particularly in the USA, Canada, Europe, and Australia.
