HeidelbergCement’s first quarter results show group revenue up by 12% to €2.8 billion (previous year, €2.5 billion like-for-like, +4%) and operating income before depreciation (OIBD) improved by 46% to €299 million (previous year: €205 million like-for-like, +29%).
The results show a margin improvement in all group areas; significant reduction in net debt to €6.1 billion thanks to completed sale of building products business; outlook for 2015 confirmed; a positive outlook for the global economy althouhg geopolitical and macroeconomic risks remain; growth in sales volumes of cement, aggregates, and ready-mixed concrete expected, and a significant rise in revenue, operating income, and profit for the financial year.
The group says it is well positioned to benefit over-proportionally from the continued economic recovery, particularly in the USA and the United Kingdom where the continued recovery of the construction industry contributed to an overall positive development of sales volumes in the first quarter.
For 2015,
On the basis of these assumptions, the Managing Board has set the goal of significantly increasing revenue, operating income, and profit for the financial year before nonrecurring items in 2015. Furthermore, HeidelbergCement is expected to earn its cost of capital in 2015.
“Business development in the first quarter has strengthened our conviction in our outlook for 2015,” says Dr Bernd Scheifele, chairman of the Managing Board.
“Our strategic focal points remain unchanged: cost leadership through continuous efficiency improvements, deleveraging with the aim of attaining investment grade status, and targeted investment in cement capacities in growth markets as well as in raw material deposits to strengthen our global market leadership in aggregates.
“We are confident about 2015. The outlook for the global economy is positive, but there are still macroeconomic and especially geopolitical risks. We will continue to benefit from the positive development in North America, the United Kingdom, Germany, and Northern Europe. These countries generate almost 50% of our revenue. The considerable drop in the oil price and the weaker euro will provide us with additional tailwind. In view of our strong positioning in raw material reserves, our production sites in attractive locations, our outstanding vertical integration, and our excellent product portfolio, we are well positioned to achieve our goals.”
