Turnover at Heidelberg Cement is up 10% in the second quarter, compared to the sale period in 2009, and the company has also announced increases in operating income. Sales for the period between April and June this year totalled €3.3billion, while operating income was recorded at €492million, up 10.4% from last year.
The company has credited sustained growth in its Asia Pacific, Africa-Mediterranean basin and North America for the changing trend with sales of cement, aggregates and ready mixed concrete all up from 2009 levels. Heidelberg has also reported that demand is recovering in Western and Northern Europe with growth in aggregates and ready mixed concrete sales. Further declines were reported in Heidelberg’s Eastern Europe and Central Asia division but the company said the declines were noticeably smaller.
“As a result of the improved development in our core markets and the successful continuation of our cost-saving programmes, we were able to increase our turnover and operating income in the second quarter in comparison with last year,” said Heidelberg chairman of the managing board Dr Bernd Scheifele. “In addition, we further strengthened our liquidity and maturity profile. Our 'FitnessPlus 2010' continues to be on track and generated savings of €124million in the first half of the year.
“Demand for our building materials improved significantly in the second quarter, particularly because of the successful implementation of infrastructure projects in
North America and Western and Northern Europe.
“However, uncertainties still remain over future developments because of the sustained high level of unemployment and the still unclear impact of budgetary consolidation on infrastructure expenditure in individual countries. So we will consistently continue with our cost-saving programme and keep working towards our savings goal of €300million for 2010. Debt reduction remains an important area of focus.
“At the same time we will continue with our targeted investments in future growth, particularly in cement activities, in the emerging countries of Asia, Africa, and Eastern Europe. With improved cost structures, our operational strength and leading market positions, we believe we are well-equipped to benefit to an above average degree from an economic upturn in the course of this year and the next.”
