Holcim has reported a 17.6% fall in sales in the third quarter

Switzerland-based Holcim has reported further declines in sales and EBITDA during the third quarter of the year, compared to the same period last year. Sales fell 17.6% to CHF5.6billion (€3.7billion) while the rate of EBITDA decline slowed to 5.9% to record CHF1.4billion (€927million). For the year to the end of September 2009, sales are down 18.4% at CHF15.7billion (€10.4billion) and EBITDA has fallen 17.2% to CHF2.3billion (€1.5billion).

Despite these figures, the company has said that reacted quickly to the changing economic environment and has reduced fixed costs by CHF573million. Holcim also said that its strategic expansion programme is focusing on emerging markets and the acquisition of Cemex's operations in Australia also strengthens the business.

Looking at its results for Europe, Holcim has said that there were growing signs of an economic stabilisation in the third quarter. "France and Germany returned to modest economic growth," the company said in a statement. "Nevertheless, the situation in Europe's building materials markets remained for the most part difficult. In particular, Spain, the UK, Italy and Eastern European countries including Russia and Azerbaijan experienced a weak level of private and public construction activity. By contrast, the construction level held up well in Switzerland."

European sales in the first nine months of the year were down 28.5% at CHF5.66billion (€3.7billion) compared to the same period in 2008. In the third quarter, the company recorded a 25.9% drop from last year's levels at CHF2billion (€1.32billion). Profitability has also been hit with EBITA for the first nine months down 39.7% to CHF1billion (€662million) but there was an improvement in the third quarter with decline slowing to 20% below 2008 levels.

In a statement, the company said, "In Europe, especially in Spain, the UK and Eastern Europe including Russia, the markets will remain challenging for a longer period. More optimistic is Holcim with regard to the development in North America, as building materials markets are expected to return to modest growth in the second half of 2010 on the back of the stimulus programs. The situation going forward looks more positive for most of the emerging markets in Latin America, Africa Middle East and Asia Pacific. Here, building activity will for the most part remain solid. Especially in Asia Pacific, many of the countries can expect to see strong demand."