HeidelbergCement reports preliminary figures for Q4 and the whole of 2016 Q4 2016

674 HeidelbergCement has released its its preliminary, unaudited figures for sales volumes, revenue, operating income before depreciation (OIBD), and operating income for the fourth quarter and the whole of 2016.

“The year 2016 was an important milestone for HeidelbergCement,” says Dr Bernd Scheifele, chairman of the managing board.

“With the acquisition of 726 Italcementi, we made a big leap in growth and achieved the best operating income since the financial crisis. The integration of Italcementi is well under way and offers significant earnings potential resulting from the implementation of identified synergies. With the investment grade rating, we reached our strategic target as result of our strengthened business profile and improved creditworthiness. Our consistent focus on efficiency and margin improvement during the last years made a major contribution.”

In the reporting year, sales volumes of the core products cement, aggregates, and ready-mixed concrete rose significantly as a result of the consolidation of Italcementi as from 1 July 2016.

In the fourth-quarter, cement sales volumes rose by 50% to 30.8 million tonnes (previous year: 20.5). They include sales volumes of Italcementi in Italy, France, Spain, Greece, Bulgaria, Kazakhstan, India, Thailand, Egypt, Morocco, Mauritania, Gambia, and North America.

Aggregates sales volumes recorded an increase of 16% to 73.3 million tonnes (previous year: 63.3). They include the shipments of Italcementi in France, Italy, Spain, Greece, Morocco, and North America.

In the fourth-quarter, total ready-mixed concrete deliveries rose also due to consolidation effects by 27% to 12.1 million m³ (previous year: 9.6). Therein included are contributions from Italcementi markets in France, Italy, Spain, Greece, Kazakhstan, Egypt, Morocco, Thailand and North America.

Revenue and operating income also increased significantly as a result of the consolidation of Italcementi in 2016. In the fourth-quarter.

Group revenue rose by 25% to €4.2 billion (previous year: 3.4). OIBD could be increased by 18% to €818 million (previous year: 696) and operating income by 2% to €507 million (previous year: 499).

In the reporting year, group revenue rose by 13% to €15.2 billion (previous year: 13.5).

Currency effects had a negative impact of €326 million on revenue. OIBD improved by 13% to €2.9 billion (previous year: 2.6) and operating income by 7% to €2.0 billion (previous year: 1.8).

“Considering the overall positive outlook for the global economy and our advantageous geographical positioning, we are confident about the future,” says Dr Scheifele, in the first outlook of 2017,.

“At the same time, we are aware of the increased macroeconomic risks, in particular the rise in energy prices and inflation as a whole. In addition, uncertainties arise from geopolitical risks in Ukraine, the Middle East and due to important elections in Europe in 2017. HeidelbergCement is very well equipped to follow up on the new strategic priorities, growth and increase in shareholder return, over the coming years.

“In 2017, we will focus on the realisation of the synergies from the Italcementi acquisition and on measures in view of cost inflation. Price increases will play an important role in this context.

“Our programmes to improve efficiency and margins will also be consistently pursued in 2017. It is our aim to continuously improve our commercial and operational work processes for cement Continuous Improvement Programme; aggregates (Aggregates CI), and logistics (LEO).

“In 2017, we will once again benefit from the economic development in the USA. With our strong positioning in raw material reserves and production sites at attractive locations, our vertical integration, and excellent product portfolio, as well as our margin management which is best-in-class in our industry, we believe that we are well equipped for the opportunities and challenges of 2017.”