Merrill Lynch downgrades Lafarge

Demand for construction materials in emerging markets and stable volume development have been cited by Holcim for the 5% rise in turnover in the first nine months of the year. Sales reached CHF16.5billion during the period, up from CHF15.7billion in the same period last year. The company has recorded this growth for the full nine months despite a 0.5% decline in sales during the third quarter, which was blamed on economic and seasonal influences negatively impacting on the business.

Holcim increased consolidated net sales, operating EBITDA and net income in 2012 despite the difficult economic environment in Europe and restructuring costs. The Holcim Leadership Journey, which is well under way across the whole group, also supported operating performance. Despite the fact that volume growth was limited, Holcim succeeded in increasing net sales by 3.9% to CHF 21.5 billion (about €17.7 billion) and operating EBITDA by 0.7% to almost CHF 4 billion. Operating profit decreased by 6% to CHF 1.

Holcim has reported a significant increase in operating profit for the first quarter of 2014 along with a further increase in operating margins and like-for-like higher volumes and net sales.

Net sales across the group reached CHF 4.09 billion (€3.36 billion), a fall of 5.4%, which was mainly influenced by negative currency effects. On a like-for-like basis net sales were up 7.8%.