Heidelberg Materials saw its third-quarter revenue increase by 13% to €15.8bn (+12% on a like-for-like basis). High energy and raw material costs in Q3 2022 were said by the German building materials major to be offset by energy savings, cost discipline and price adjustments.
The Group said it had made progress in the quarter towards a more sustainable product portfolio, with the launch of another big CCUS (carbon capture, utilisation & storage) project, recycling business expansion, and ambitious climate targets submitted to the SBTi (Science Based Targets initiative) for validation.
Heidelberg Materials expects its full-year 2022 trading to generate strong revenue growth to €2.35-€2.55bn.
"The third quarter was a strong one for Heidelberg Materials. With Group-wide energy saving measures, cost discipline, and price adjustments, we weathered further increases in energy and raw material prices and maintained our result from current operations at the level of the previous year's third quarter," said Dr Dominik von Achten, Chairman of the Managing Board.
"The environment remains challenging. Due to high global inflation and the continuation of highly volatile price developments in the energy sector, we anticipate a slight weakening of demand in the coming months, especially in residential construction. However, the third quarter has shown that we are well prepared for this.
"When it comes to sustainability, we are paving the way in our industry. As early as 2024, we will be the first company in our sector to offer carbon-neutral cement and concrete. In the third quarter of 2022, we have already started our eighth major CCUS project in Mitchell, USA. Our ambitious climate targets are currently being validated by the SBTi to confirm their compliance with the 1.5°C scenario. Our new corporate brand, Heidelberg Materials, helps us to coordinate these initiatives worldwide and drive them forward with great vigour."
In the first nine months of 2022, sales volumes in all Heidelberg Materials business lines declined due to consolidation and the economic impact of the Russian war against Ukraine on the European economy.
Group-wide cement and clinker sales volumes reduced by 6% to 90 million tonnes (previous year: 95.7). In addition to consolidation-related declines – particularly in North America due to the sale of our activities in the West region in October 2021 – the economic downturn in Europe led to a drop in sales volumes. Excluding consolidation effects, cement and clinker sales volumes decreased by 3.8%.
Deliveries of aggregates fell by 3.4% compared with the same period of the previous year to 223.5 million tonnes (previous year: 231.3). On a like-for-like basis, deliveries increased by 0.8%. In addition to slight volume increases in North America and Northern and Eastern Europe-Central Asia, this was mainly due to recovering demand in Asia-Pacific after the lockdowns in the two previous years.
Sales volumes of ready-mixed concrete fell by 4.3% to 34.2 million cubic metres (previous year: 35.7). Excluding consolidation effects, sales volumes were almost at the previous year's level. While sales volumes in Western and Southern Europe were slightly below the previous year's level owing to economic factors, the decline in North America was primarily due to consolidation.
In contrast, the Group areas Africa-Eastern Mediterranean Basin and Asia-Pacific, in particular, recorded volume increases.
Deliveries of asphalt fell strongly by 24.3% to 6.2 million tonnes (previous year: 8.2) due to consolidation. On a like-for-like basis, deliveries increased slightly by 0.5%.
With another major CCUS project in the USA, Heidelberg Materials has further expanded its portfolio of carbon capture initiatives. At the cement plant operated by the US subsidiary Lehigh Hanson, Inc., in Mitchell, Indiana, 95% of the CO2 emissions from the modernised production facility will be captured and stored in a nearby onshore reservoir.
To best serve the growing demand for sustainable building materials, Lehigh Hanson also took over the recycling company JEV Recycling, Inc., in the Seattle metropolitan area in October. In acquiring JEV and commissioning a new concrete recycling plant in Redmond, Washington, Heidelberg Materials is strengthening its portfolio of circular materials in the important North American market.
With a steadily growing number of CCUS projects and the most ambitious CO2 reduction targets in the sector, Heidelberg Materials says it will continue to play a pioneering role.
