LafargeHolcim increased its operating earnings in Q3 2016 – despite sales of CHF 7 billion being 3.1% down on a like-for-like basis compared to the same quarter of 2015. The building materials giant posted a 10.5% rise in adjusted operating EBITDA, said to be driven by pricing strategy, synergies and disciplined cost management. The company’s income in Q3 2016 was CHF 1.1 billion, with its operating free cash flow up CHF 826 million compared to 2015. Eric Olsen, CEO of LafargeHolcim, said: “With the
LafargeHolcim increased its operating earnings in Q3 2016 – despite sales of CHF 7 billion being 3.1% down on a like-for-like basis compared to the same quarter of 2015.
The building materials giant posted a 10.5% rise in adjusted operating EBITDA, said to be driven by pricing strategy, synergies and disciplined cost management. The company’s income in Q3 2016 was CHF 1.1 billion, with its operating free cash flow up CHF 826 million compared to 2015.
Eric Olsen, CEO of LafargeHolcim, said: “With these results, we are demonstrating that our focus on pricing, synergies and cash flow is delivering results. Our earnings momentum is accelerating and we are on track to achieve our commitments for 2016, resulting in a year of solid progress towards our 2018 objectives.
“These results demonstrate the strength of our balanced portfolio with solid contributions from both mature and emerging countries across our regions. As we anticipated, challenging conditions in Nigeria continued to impact our earnings, but we started to see the positive effects of higher prices and of our actions to diversify our fuel mix towards the end of the quarter.
“Beyond the benefits from the divestment program, we continue to focus on reducing net debt and driving strong cash flow generation.”
LafargeHolcim said it expected demand in its markets to grow at between 1-3% for the full 2016 year. Based on trends, the company said its full year expectations remain unchanged, except for synergies where LafargeHolcim now expect to deliver at least CHF 550 million of incremental synergies.
PIC CAPTION: LafargeHolcim CEO Eric Olsen says the company is on track to achieve its 2016 goals, after the company continued its operating earnings growth in Q3 2016.
