Heidelberg records double digit like-for-like operating income gains for first quarter

Strong growth in Europe has helped to boost Heidelberg Cement’s first quarter results with €3billion turnover recorded compared to €1.78billion the same period last year. According to a statement from the company, double digit gains were also recorded in operating income even after taking out the affect of the acquisition of Hanson and the sale of Vicat and Maxit last year.

The company recorded a rise in sales of cement and clinker of 9.9% to 19.6million tonnes during the period, which equates to a 4.1% increase excluding the consolidation effects. Deliveries of aggregates increased four-fold to 61million tonnes, mainly as a result of the inclusion of Hanson in the result, but Heidelberg has said that sales volumes are “noticeably improved” even excluding the additional Hanson business. Ready Mixed concrete sales were also up 89% to 10million cubic metres.

“In the first few months of 2008, we were able to achieve a considerable rise in our key figures as a result of organic growth and a strong global market position,” said Heidelberg chairman of the managing board Dr Bernd Scheifele. “Group turnover rose by 71.8% in the first quarter to €3billion. This was due to the inclusion of Hanson in particular, but the countries of Eastern Europe and Central Asia as well as Germany, the Benelux countries, Sweden, Asia, Ghana and Turkey also contributed to this growth. Excluding exchange rate and consolidation effects, turnover increased by 10.6%.”

Looking ahead to the rest of the year, Scheifele said, “We expect noticeable increases in turnover and results as a result of the full-year inclusion of Hanson and solid operational development.”