RSSHighlights of
The group says that revenue increased by 4% to €3.8 billion (like-for-like, +7%); operating income improved by 13% to €675 million despite negative exchange rate effects (like-for-like, +19%) and operating cash flow improved and net debt was reduced.
The outlook for 2014 is confirmed and HeidelbergCement says there is a positive outlook for global economy due to recovery in the mature markets of North America and Western and Northern Europe, esp. USA and UK.
The group reported growth in sales volumes of cement, aggregates, and ready-mixed concrete.
In the first nine months of the year, cement and clinker sales volumes rose by 5% to 62.9 million tonnes (previous year: 59.6 million tonnes). In addition, deliveries of aggregates increased by 5% to 180.8 million tonnes (previous year: 172.3 million tonnes) and deliveries of ready-mixed concrete also rose by 5% to 27 million m³ (previous year: 25.8 million m³); asphalt sales volumes even improved by 14% to 6.9 million tonnes (previous year: 6.1 million tonnes).
“In the third quarter, we generated the best operating income since the financial crisis started in 2008,”, says chairman of the managing board Dr Bernd Scheifele.
“Furthermore, we have been able to improve the operating margins in all business lines.
“Our advantageous geographical positioning, successful price increases in key markets, and strict cost management have contributed to this achievement. As a result, we have also been able to improve our cash flow and continue to reduce net debt.”
The additional ordinary result from the third-quarter fell by €275 million to €-5 million
(previous year: €269 million). The same quarter of the previous year included non-cash gains
from the unwinding of a corporate structure owned by
At the start of October, HeidelbergCement commissioned a new cement mill with a capacity of 0.8 million tonnes/year in its cement plant at Dar Es Salaam, Tanzania.
In the fourth-quarter, HeidelbergCement is planning the start of production and commissioning of additional production capacities, among others the clinker plant inTogo with an annual capacity of 1.5 million tonnes and the cement mill in Burkina Faso (0.7 million tonnes/year). The commissioning of a further cement mill in Takoradi, Ghana, (0.8 million tonnes/year) is expected at the start of 2015. The capacity expansion enables HeidelbergCement to serve the growing markets in West Africa and therefore to secure its competitive advantage in this region.
“Due to the strong operating development in the first nine months, we are very confident that we will achieve our results outlook for 2014,” says Dr Scheifele.
“The HeidelbergCement management continues to focus on operational improvements, cost efficiency, customer excellence, and financial discipline. In this context we will furthermore pursue the objective of improving our key financial ratios in order to qualify again for an investment grade credit rating. To this end, we will continue to be very disciplined in our spending and focus more intensively on the sale of the building products business line in the United Kingdom, the United States, and Eastern Canada, as well as other assets that do not belong to our core business.
“At the same time, we will remain on course with our successful strategy of targeted expansion of our cement capacities in growth markets. Furthermore, we will move along unabated with our existing programmes for margin improvement and simultaneously gather and implement new ideas from our employees to improve our business processes with the help of the Continuous Improvement Program (CIP).
“In 2014, we benefit from the economic development in the industrial countries, particularly in North America and the United Kingdom, but also in Germany and Northern Europe.
“These countries generate almost 50% of our revenue. Furthermore, we are improving our market position in growth markets with the commissioning of modern production facilities. In view of these factors as well as our high operational efficiency, we consider ourselves well-equipped to benefit over-proportionally from the accelerating economic growth in the interests of our shareholders.”
