HeidelbergCement reports results for second quarter 2017

In the second quarter, the sales volumes of HeidelbergCement’s building materials rose substantially as a result of the consolidation of Italcementi. On a pro forma basis, i.e. taking into account Italcementi’s deliveries in the same period of the previous year, sales volumes declined slightly. Growth in sales volumes was impaired by fewer working days owing to Easter and the end of Ramadan, as well as rainy weather, especially in the South, Northeast and Midwest of the United States.

The group’s cement and clinker sales volumes increased by 47 percent to 32.8 million tons (previous year: 22.3) as a result of the acquisition. On a pro forma basis, sales volumes declined by 1 percent. The strongest increase was recorded in North America, followed by Northern and Eastern Europe-Central Asia as well as Africa-Eastern Mediterranean Basin.

Deliveries of aggregates also registered an acquisition-related rise of 18 percent to 81.4 million tons (previous year: 69.1). Taking into account Italcementi’s deliveries in the same period of the previous year, the growth amounts to 5 percent. Higher sales volumes in all group areas, excluding Western and Southern Europe and North America, and particularly the consolidation of the Mibau group in Northern Europe, contributed to this increase.

Deliveries of ready-mixed concrete also rose as a result of the consolidations by 22 percent to 12.2 million cubic meters (previous year: 10.0). On a pro forma basis, sales volumes fell by 6 percent. Asphalt sales volumes declined by 5 percent to 2.4 million tons (previous year: 2.6).

“In the light of the difficult general conditions, we achieved a good result in the second quarter,” says Dr. Bernd Scheifele, chairman of the managing board. “We were able to almost offset the effect of higher energy costs, bad weather conditions, fewer working days and increased competition in some emerging countries.”

Outlook
In its latest forecast from July 2017, the International Monetary Fund (IMF) continues to expect a rise in global economic growth from 3.2 percent in 2016 to 3.5 percent in 2017. Beside accelerating growth in the United States, an improved economic outlook for the Eurozone and increasing growth rates of the emerging markets are drivers behind this trend.

In North America, HeidelbergCement, in conformity with the IMF, expects a stronger economic recovery and consequently a further increase in demand for building materials.

“We remain cautiously optimistic about 2017,” Scheifele says. “While the overall outlook for the global economy is positive, major macroeconomic and particularly geopolitical risks remain. HeidelbergCement will benefit from the good and stable economic development in the industrial countries, above all in the USA, Canada, Europe, and Australia. These countries generate more than 60 percent of our revenue,” he says.

“With the acquisition of Italcementi and its rapid integration, we have impressively demonstrated our tremendous business potential and strong momentum. From a global perspective, we are well positioned to achieve our strategic goals – continuous growth and sustainable returns for our shareholders.”