Positive start for Holcim
First publishedon www.AggBusiness.com
Holcim has reported higher net sales and better operating results for the first quarter of 2010, compared to the same period last year with March show significant improvements.
The company has reported a 4.8% rise in net sales to CHF4.7billion and 19.1% increase in EBITDA to CHF909million in the first three months of year, compared to 2009. Sales volumes for cement, aggregates and ready mixed concrete were all up on 2009 levels with aggregate showing the strongest gain of 17.5% to take it to 29.5million tonnes.
According to a statement from the company, emerging markets particularly in Asia, remained on track for growth; however, heavy snowfall and a weak economy curbed construction activity in Europe and North America during the period. The consolidated result was supported by a strong presence in the emerging markets, the expansion in Australia and rigorous cost-cutting.
Looking ahead, the company said that the position in Europe and North America remains uncertain. “Only over the coming months will it become clear whether the weak demand in the first quarter of 2010 was due more to the hard winter or to the general adverse economic conditions,” said the company in a statement. “However, in Latin America and Group region Africa Middle East, Holcim expects business to develop on a stable footing. Asia Pacific will remain on track for growth. In Asia, Latin America and Russia, Holcim will commission cement and grinding plants with an annual capacity of around 8 million tonnes before the end of the year.
“In 2010, the Group will benefit from the cost advantages gained last year and further strengthen the efficiency of its processes and competitiveness.”