This was achieved despite the weaker construction activities in India, Morocco and France, the harsh winter in the northern hemisphere and the early Easter period which reduced the number of working days.
Market and weather-induced decreases in sales volumes in all segments and higher variable costs impacted operating results, says the company.
Price improvements, cost savings, primarily in fixed costs in Europe and Latin America, and the sale of a stake of 25% in Cement Australia compensated for this, and as a result Holcim was able to report an increase in net income in the first quarter. This success was substantially supported by the Holcim Leadership Journey.
Group regions Europe and Latin America achieved an improvement of operating EBITDA, in absolute terms and also like-for-like. In Asia, where the growth trend is unbroken in most countries, the considerably weaker results of both Indian group companies impacted the operating result of the whole region. The smaller group region Africa Middle East primarily felt the negative effects of Morocco, says Holcim.
Consolidated net sales were 7.2% lower at CHF 4.3 billion (approximately €3.5 billion). Operating EBITDA fell by 9.5% to CHF 650 million (€527.9 million) and operating profit came to CHF 270 million (€219.27 million), corresponding to a decrease of 17.8%. Net income was 164.1% higher year-on-year at CHF 295 million (€239.5 million)
Consolidated cement sales decreased by 5% to 32.1 million tonnes with sales increases being achieved primarily by group companies in Ecuador, Russia and Azerbaijan.
Deliveries of aggregates were down by 8.6% to 28.6 million tonnes. Favourable market conditions were reported in Switzerland. Declines in aggregates were recorded in Australia, Ecuador and Spain in particular. Sales of ready-mixed concrete declined by 16.8% to 8.4 million m³. However, this decline was mainly due to restructuring measures. Asphalt sales contracted by 17.7% to 1.1 million tonnes.
Holcim says it anticipates an increase in sales of cement in 2013, but it will be challenging to reach the previous year’s levels in the aggregates and ready-mix concrete businesses. While group regions Asia Pacific, North America and Latin America are expected to witness higher sales volumes, Holcim is somewhat less optimistic with regard to Europe and Africa Middle East.
Turning to operating EBITDA and operating profit, the board of directors and executive committee expect a further improvement of margins. The Holcim Leadership Journey, which will gain further momentum in all streams as planned, will also contribute to this development.
Under similar market conditions, significant organic growth in operating EBITDA and operating profit should be achieved in 2013.
