ZURICH -- Cement maker Holcim Ltd (HOLN.VX) Wednesday said
higher prices and cost savings from its efficiency programme
compensated for harsh winter weather and weaker construction as it
reported better-than-expected profit for the three months to March
31.
MAIN POINTS:
- 1Q net profit of CHF187 million versus CHF10M million in
2012
- 1Q revenue of CHF4.32 billion versus CHF4.66 billion in
2012
- Outlook: Holcim said it expects an increase in sales of cement
in 2013, but it will be "challenging" to reach the previous year's
levels in the aggregates and ready-mix concrete businesses.
- While the Asia Pacific, North America and Latin America
regions are expected to witness higher sales volumes, Holcim is
somewhat less optimistic with regard to Europe and Africa Middle
East, Holcim said.
- The company said it expects operating EBITDA and operating
profit margins to improve, and its Leadership Journey efficiency
programme gains momentum.
- Under similar market conditions, significant organic growth in
operating EBITDA and operating profit should be achieved in 2013,
it says.
- Five analysts polled by Dow Jones on average forecast a net
profit of CHF32.4 million.
- Five analysts polled by Dow Jones on average forecast revenue
of CHF4.66 billion.
- Rival cement manufacturer Lafarge SA Tuesday reported a 6% dip
in first quarter sales, while its net loss widened to EUR117
million from a EUE60 million loss. German peer HeidelbergCement AG
will report its 1Q earnings on May 8.
- Holcim shares closed Tuesday at CHF72.5, valuing the company
at CHF23.7 billion. The stock has gained 8.4% in value since the
start of the year.
Write to john.revill@dowjones.com
Order free Annual Report for HeidelbergCement AG
Visit http://djnweurope.ar.wilink.com/?ticker=DE0006047004 or
call +44 (0)208 391 6028
Order free Annual Report for Lafarge SA
Visit http://djnweurope.ar.wilink.com/?ticker=FR0000120537 or
call +44 (0)208 391 6028
Order free Annual Report for HeidelbergCement AG
Visit http://djnweurope.ar.wilink.com/?ticker=US42281P2056 or
call +44 (0)208 391 6028
Order free Annual Report for Lafarge SA
Visit http://djnweurope.ar.wilink.com/?ticker=US5058614018 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires