Holcim’s Q1 2012 report: Growing demand for construction materials
Consolidated net sales increased by 2.2 percent to CHF 4.8 billion. In absolute terms,
Asia Pacific ranked first with net sales of CHF 2.2 billion.
Operating EBITDA was almost stable with a decline of 1.1 percent to CHF 745 million.
The negative weather effects in Europe could be almost entirely absorbed. It is
worthwhile to note that energy and transport costs somewhat stabilized.
With the exception of Europe, all Group regions performed better. The Group grew like-forlike
by 5.5 percent.
Net income of CHF 116 million almost reached the previous year’s level, and Group net
income attributable to shareholders of Holcim Ltd rose by 1.2 percent to CHF 10 million.
Due to the seasonal pattern of the first quarter, cash flow from operating activities
amounted to a negative CHF 474 million, an improvement of 11.8 percent compared to
the previous year’s reporting period.
The last 12 months have seen net financial debt decrease 4.9 percent to CHF 11.8
billion. The sale of Holcim shares contributed an amount of CHF 296 million.
Holcim expects demand for building materials to rise in emerging markets in Asia and
Latin America, as well as in Russia and Azerbaijan in 2012. A slight improvement for
North America can also be expected. In Europe, demand should remain stable, provided
that the situation is not undermined by further systemic shocks. In any case, Holcim will
accord cost management the closest attention and pass on inflation-induced cost
increases. Holcim’s approach to new investments will be cautious. Holcim expects that
the Group will achieve organic growth at operating EBITDA level.
A program to further strengthen market and cost leadership will be announced next week, after the respective measures are concluded at the Group Management Meeting.
The aim is to significantly improve operating profit and, therefore, to support a higher
return on invested capital.