ZURICH--Holcim Ltd (HOLN.VX) Wednesday reported a 9% increase in
first-half net profit as higher demand from emerging market
countries and the U.S. offset a weak European cement market, and
raised its outlook for North America.
MAIN FACTS:
- Consolidated net sales increased 2.1% to 10.4 billion Swiss
francs.
- Operating EBITDA rose 1.9% to CHF1.9 billion, despite the poor
state of the European market and restructuring costs in markets
such as Spain, the U.K., Brazil and Mexico of CHF37 million.
- Net income rose 6.6% to CHF624 million and the share of net
income attributable to shareholders of Holcim Ltd gained 9% to
CHF389 million.
- Cash flow from operating activities reached CHF211 million, an
increase of 194.2% on the same period last year, due to higher
operating EBITDA and lower taxes paid.
- Net financial debt rose since year-end 2011 5.3% to CHF12.2
billion.
- Consolidated cement sales increased 4.4% to 74 million tonnes,
while deliveries of aggregates declined 7% to 75.6 million tonnes,
and ready-mix concrete volumes by 1.3% to 22.8 million cubic
meters.
- The Board of Directors and the Executive Committee initiated
the "Holcim Leadership Journey" program with the aim of increasing
the return on invested capital to at least 8% after tax between
2012 and the end of 2014.
- Appropriate measures are being introduced to further
strengthen Customer Excellence and Cost Leadership and increase the
operating profit by at least CHF1.5 billion by the end of 2014,
with a target of at least CHF150 million for the 2012 financial
year.
- The program was launched Group-wide in May.
- 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.
- While demand in North America should beat the previous
outlook, Holcim now expects a decline in Europe.
-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47;
zurichdjnews@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires