HeidelbergCement reports its revenue in 2016 up 13% to $16.3bn (€15.2bn).
HeidelbergCement reported profit before tax from continuing operations fell by €109 million to €1,204 million (previous year: 1,313). Income taxes rose slightly by €10 million to €305 million (previous year: 295). As a result, net income from continuing operations decreased by €119 million to €899 million (previous year: 1,019). Net loss from discontinued operations amounted to €-3 million (previous year: -36).
“2016 was an exceptional year for HeidelbergCement,” says Bernd Scheifele, chairman, HeidelbergCement.
“With the successful takeover of Italcementi, we have accelerated our growth and are now in an excellent strategic position. In our core business lines of aggregates, cement, and ready-mixed concrete, we occupy first, second, and third place globally. We have also achieved a major milestone with the investment grade classification by the rating agencies S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings,” he said.
“The sales volumes of cement, aggregates, and ready-mixed concrete increased as a result of the acquisition of Italcementi. On a pro forma basis, i.e. taking into account the contributions of Italcementi for the full years 2015 and 2016, sales volumes rose moderately in all business lines in comparison with the previous year. On the one hand, we benefited from the ongoing recovery in North America and Europe. On the other hand, the weaker demand in Asia – primarily in Indonesia due to the delayed start to infrastructure projects – adversely impacted cement and ready-mixed concrete sales volumes.”
Revenue rose by 12.6% to €15,166 million (previous year: 13,465). The consolidation of Italcementi in particular contributed to this positive development. Revenue was impaired by negative currency effects of €326 million resulting from the depreciation of a number of currencies against the euro. On a comparable pro forma basis, revenue decreased slightly.
Outlook for 2017
In North America, HeidelbergCement, expects a stronger economic recovery and consequently a further increase in demand for building materials.
In Western and Southern Europe, positive market development is expected. This is based on the continued recovery in the United Kingdom, the consistent solid condition of the German economy, and the stable economic development in Benelux.
In Eastern Europe, it anticipates growing demand for building materials as result of the EU infrastructure programme.
“We remain cautiously optimistic about 2017,” Scheifele said.
“While the overall outlook for the global economy is positive, the major macroeconomic and particularly geopolitical risks have increased at the same time. HeidelbergCement will benefit from the good and stable economic development in the industrial countries, above all in the USA, Canada, the United Kingdom, Germany, the northern European countries, and Australia. These countries generate approximately 60% of our revenue.
"With the acquisition of Italcementi and its rapid integration, we have impressively demonstrated our high business potential and strong momentum. From a global perspective, we are well positioned to achieve our strategic goals – continuous growth and sustainable increase in shareholder returns,” Scheifele said.
