Holcim like-for-like sales up in 2011
First publishedon www.AggBusiness.com
Holcim achieved more like-for-like net sales of cement, aggregates and ready-mix concrete in 2011 despite the tough economic climate.
The 7.5% rise in like-for-like sales compared to 2010 contrasted a 4.2% drop in consolidated net sales in 2011 compared to the previous 12 months. Like-for-like operating EBITDA rose 0.2%.
Meanwhile, cash-neutral impairments of €642.9million reduced Group net income to €565.8million. Holcim say cash flow from operating activities remained "solid" at €2.32billion.
Fourth quarter 2011 performance was strong with a 13.1% rise in like-for-like sales, with consolidated net sales up 3.9%. Like-for-like operating EBITDA in the final three months of the year rose 15.5%. Like-for-like cash flow from operating activities increased 28.4% in Q4.
Holcim say European demand for its cement, aggregates and ready-mix remained stable, with Asia Pacific proving an attractive sales market due to its growing demand for construction materials.
In the fourth quarter of 2011, Holcim cement deliveries increased 6.7% to 36.2million tonnes. The largest sales increases came from the Asia Pacific and Latin America group regions. Aggregates sales developed positively during this period as well, rising 8.9% to 42.6million tonnes, with Europe and North America achieving the highest level of increases. With the exception of Asia Pacific, deliveries of ready-mix concrete were up in all Group regions, amounting to a consolidated increase of 6.5% to 12.2million cubic metres.
Holcim says it expects demand for building material to rise in Latin America and Asia emerging markets, as well as in Russia and Azerbaijan in 2012. A slight improvement in North American sales is also expected. In Europe, the company believes demand will remain stable, provided that the situation is "not undermined by further systemic shocks".