Against a tough economic background, companies are reporting many improved results for 2011, with the emerging markets again offering solid growth.
However, a number of major companies may well be looking to divest some interests to reduce debt while others, such as the UK’s
HeidelbergCement’s 2011 statement shows its revenue improved by 10% to €12.9 billion; operating income before depreciation increased by 4% to €2.32 billion and net profit for the financial year rose by 5% to €534 million despite extraordinary charges of €138 million.
The company achieved an increase in sales volumes of cement (+12%), aggregates (+6%), and ready-mixed concrete (+12%).
Advantageous geographical positioning and exceptionally mild winter weather, particularly in Europe and North America, contributed to this growth.
“The year 2011 was a further consistent step towards reaching our strategic goals. The positive development of our results contrasts sharply with the industry’s negative trend in 2011,” says Scheifele.
The group expects the global economy to continue to grow in 2012, although growth rates will weaken in most individual markets because of the measures taken to consolidate public finances. Growth rates in the emerging countries of Asia and Africa will still be considerably higher than those in the mature markets of North America and Europe.
Net sales for 2011 decreased 4.2% to CHF 20.744 billion (like-for-like +7.5%) compared to 2010 and like-for-like operating EBITDA at CHF 3.958 billion decreased 12.3% (like-for-like -0.2%).
According to Lafarge its fourth quarter results showed “positive trends” after successfully achieving a net debt reduction target of €2 billion with a €500 million cost savings programme underway.
For the full year sales increased 3% to €15.284 billion (+5% like-for-like) but the current operating income fell 9% to €2.179 billion (-9% like-for-like) and the net income group share was down 28% to €593 million.
Bruno Lafont said: “In 2011 the group met its debt reduction target of €2 billion despite a very challenging environment. Additional debt reduction will come in 2012 as the group maximises its operational cash flows. We will drive a €500 million cost reduction programme; implement price actions as a response to cost inflation; further reduce capital expenditures to €800 million; execute strategic divestments of more than €1 billion, and propose a reduction of the dividend to 50 cents per share.”
Looking ahead the group sees cement demand moving higher and estimates market growth of between 1-4% in 2012 versus 2011, with emerging markets as the main driver.
Latest figures from
Fernando A. González, executive vice president of finance and administration, said: “This is the fifth consecutive quarter of top-line growth in our results. For the full year we saw net sales and operating EBITDA growing for the first time in four years.”
Ireland-based building materials group
Chief executive Myles Lee says the company will continue spending on takeovers in 2012.
At Breedon Aggregates, the UK’s largest independent aggregates business, preliminary results for 2011 show an underlying profit before tax of £1.5 million (€1.8 million). Revenue at £168.9 million is a 17.5% increase over 2010.
Peter Tom, executive chairman, said: “The current market conditions are definitely creating opportunities to purchase assets at realistic prices and several acquisition opportunities remain under review. We have every expectation of making further progress in the year ahead.”
