LafargeHolcim aggregate sales up in first-quarter 2017

Global sales of aggregate increased slightly at LafargeHolcim during the first quarter of the year, the company reports.

According to LafargeHolcim, aggregate sales were up 0.2 percent to 51.7 million tons globally.

Overall, LafargeHolcim as a company reports a net sales increase of 5.3 percent on a like-for-like basis for the quarter. The increase was driven by favorable pricing and improving volume momentum, the company says.

Also, LafargeHolcim’s operating EBITDA (earnings before interest, tax, depreciation and amortization) adjusted was up 14.5 percent on a like-for-like basis.

“Our good [first-quarter] performance has got us off to an excellent start for 2017 and marks our fourth consecutive quarter of earnings growth,” says Eric Olsen, CEO of LafargeHolcim.

LafargeHolcim recorded an improvement in earnings in North America despite a tough prior-year comparison owing to unusually mild weather in the first quarter of 2016, the company says. In what is a typically small quarter for the region, margins increased by around 60 basis points, net sales grew by 2.5 percent on a like-for-like basis, and operating EBITDA adjusted was up slightly.

Strong demand across all product lines led to good growth in U.S. aggregate volumes and a positive contribution to EBITDA, the company adds.

In Canada, the company’s performance was stable despite the ongoing impact of low oil prices on the economy in the west of the country, especially in Alberta and Saskatchewan, LafargeHolcim says. In Eastern Canada, the timing of projects such as the Champlain Bridge project had a positive effect on aggregate and ready-mix, according to the company.

Across Canada improved pricing contributed to earnings while volumes were down, affected by weather in West Canada. Operating EBITDA adjusted declined for Canada.

LafargeHolcim expects to deliver sustainable, profitable growth as 2017 continues, and it is particularly counting on several markets, including the United States, to drive its growth.