HeidelbergCement, the German building materials giant, saw its Q2 2016 year-on-year operating income rise by 8% to €601 million. The company has reported increased sales volumes in all its business lines, and Group revenue has remained stable at €3.6 billion. In Q2 2016 there was also significant improvement of free cash flow; with net HeidelbergCement debt reduced to €5.9 billion (previous year: €6.3 billion). Looking ahead to 2016, HeidelbergCement is positive about the global economy, but notes tha
HeidelbergCement, the German building materials giant, saw its Q2 2016 year-on-year operating income rise by 8% to €601 million.
The company has reported increased sales volumes in all its business lines, and Group revenue has remained stable at €3.6 billion. In Q2 2016 there was also significant improvement of free cash flow; with net HeidelbergCement debt reduced to €5.9 billion (previous year: €6.3 billion).
Looking ahead to 2016, HeidelbergCement is positive about the global economy, but notes that geopolitical and macroeconomic risks remain. The firm expects to see an increase in sales volumes of cement, aggregates, and ready-mixed concrete.
Meanwhile, the conclusion of HeidelbergCement’s takeover of Italcementi is still earmarked for some time in the second half of 2016.
“In operational terms, the second quarter of 2016 was the best since the financial crisis and thus continued the positive trend of the previous year,” said Dr. Bernd Scheifele, chairman of HeidelbergCement’s managing board. “The positive market environment in our mature markets and the recovery of demand in Eastern Europe made a significant contribution. We were able to raise the margins in operational terms in all business lines thanks to our margin improvement programmes and price increases in core markets. Furthermore, we have benefited from the declining fuel costs.”
