Net profit for the financial year rose by 5% to €534 million (previous year €511 million) despite extraordinary charges of €138 million. Net debt reduced to €7.77 million.
"The year 2011 was a further consistent step towards reaching our strategic goals", says Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement. "We increased revenue and results despite the unexpectedly heavy rise in energy prices and further reduced our net debt. The positive development of our results contrasts sharply with the industry's negative trend in 2011. Once again, the HeidelbergCement team successfully demonstrated cost efficiency, speed, and strength of implementation."
The report says there was sustained growth in Asia Pacific and Africa-Mediterranean Basin and continuing recovery in North America and Europe
There was a focus on increasing efficiency, prices and reducing costs in order to offset rising costs and reduced margins in 2011 and saving targets were raised by €400 million with debt reduction remaining a top priority.
The targeted expansion of cement capacities in growing markets will be continued, and HeidelbergCement is "well-positioned to benefit over-proportionally from continuing economic growth."
In 2011, HeidelbergCement achieved an above-average increase in sales volumes of cement (+12%); aggregates (+6%), and ready-mixed concrete (+12%).
The company says that in addition to the advantageous geographical positioning, exceptionally mild winter weather, particularly in Europe and North America, contributed to this growth.
"Our strategic points of focus remain unchanged in 2012. Deleveraging remains the highest priority for us, in order to regain our investment grade rating. We will also continue our successful strategy of targeted investments to expand cement capacities in the growth markets of Asia, Africa, and Eastern Europe.
"We will again intensify our efforts to reduce costs and improve efficiency. Therefore, we increase the saving target of the FOX 2013 programme by €250 million and start a new supply chain optimisation programme to achieve further cost reductions of €150 million by 2014.
"Thanks to these measures, our advantageous geographical positioning in attractive markets, in both emerging and industrialised countries, and the global market leadership in the aggregates business, HeidelbergCement is excellently positioned to benefit overproportionally from the continued economic growth," says Dr Scheifele.
