Holcim sees difficult outlook for 2009

Holcim sees difficult outlook for 2009
Published: 08 July 2009

Holcim said 2009 would remain difficult with demand still weak in the United States, Spain and Eastern Europe but emerging markets helping to slow a decline in earnings.

Holcim, which is tapping shareholders for fresh funds to buy the Australian business of Cemex for A$2.02bn, also said the gross proceeds from its capital hike would be SwFr2.1bn (US$1.9bn).

The subscription price for the hike, announced last month, is 42 francs per share, at a 28 percent discount to the closing price of 58.45 francs per share on Tuesday.

"Up to May there was no reversal of the underlying economic trend visible. Accordingly, the trading activity remained restrained," Holcim said in a statement on Wednesday.

"On the other hand, in Asia,  e.g. in India, and in Latin America, Holcim sees a quite satisfactory trading activity."

Holcim said its presence in emerging markets, accounting for 75 per cent of its cement capacity, had slowed the decline in EBITDA.