The Q1 figure show that sales volumes of building materials were impaired by long and cold winter in Europe and parts of North America and less working days but there was growth in cement sales volumes in North America, Asia and Africa which mostly compensated for weakness in Europe.
The group reports that revenue was almost stable at €2.8 billion; the improvement of margins continued; there were successful price increases; cost-saving programmes were on track and there was a sizeable expansion of cement capacities. Some 2.9 million tonnes of annual cement capacity was commissioned in Central India and an increase in stake in Cement Australia from 25% to 50% offers an extra 1 million tonnes.
HeidelbergCement says its net debt reduced by €598 million compared to previous year, and the outlook confirmed for 2013 sees continuing growth in Asia-Pacific and Africa-Mediterranean Basin; sustained recovery in North America although Europe is weak with the exception of Germany, Scandinavia, and Russia.
The target for 2013 is to increase revenue and operating income as well as significant improvement in profit before tax.
From January-March aggregates sales volumes decreased group-wide by 10.8% to 41.9 million tonnes (previous year: 47 million tonnes). Ready-mixed concrete deliveries fell by 2.1% to 7.9 million m³ (previous year: 8.1 million m³) and asphalt sales volumes decreased by 8.6% to 1.3 million tonnes (previous year: 1.4 million tonnes).
“The improved operating income in Q1, despite declining sales volumes and revenue, shows that we are on the right track,” says chairman of the managing board Dr Bernd Scheifele.
“The measures we introduced for improving the margins are showing results.
The efficiency improvement programmes are going according to plan and we were already able to implement price increases in many of our markets.”
In the second half of 2013, a new grinding plant with an annual capacity of 1.1 million tonnes is scheduled to start operation in Port Kembla, Australia.
HeidelbergCement also increased its stake in the Russian cement producer, CJSC Construction Materials in Bashkortostan, from 51% to 100% and in the British building materials producer,
The planned expansion of cement capacity rose to just under 7 million tonnes in 2013.
“Business development in the first quarter has strengthened our conviction in our prospects for the 2013 financial year,” says Dr Scheifele.
“We will also remain on course with our successful strategy of targeted investments to expand cement capacity in emerging countries. With our global market leadership in aggregates and our advantageous geographical positioning in attractive markets, we will do our utmost to benefit over-proportionally from the continued economic growth.”
