HeidelbergCement expects EUR350m cost savings from Hanson

HeidelbergCement expects EUR350m cost savings from Hanson
Published: 15 January 2008

Including Hanson for four months, HeidelbergCement expects turnover in 2007, excluding the Maxit Group that was sold, to have reached approximately EUR10,700m, compared with EUR7997m in the previous year and the trading profit to have advanced by almost 40% to around EUR1800m.  The full year results are to be announced on the 17th of March.   For 2008, HeidelbergCement anticipates a turnover in the region of EUR15,000m and good earnings growth. 
Group cement and clinker shipments in 2007 rose by 10.3% to 87.9Mt.  There was an underlying decline in North America of 4.5%, but the inclusion of Hanson’s Californian works reduced the actual reduction to just 0.6% to 14.9Mt.  The European area accounted for 43.7Mt, which represent increases of 2.6% at the underlying level and of 9.6% in absolute terms, while in the rest of the world, the group sold 29.4Mt, advances of respectively 9.9% and 17.8%.
The aggregates volume jumped by 109.2% to 179.4Mt, of which Hanson contributed 83.6Mt, 56.9% of which was in the United States.  European aggregates deliveries rose by 54.6% to 87.8Mt, thanks to a large extent to the 22.6Mt initial effect from Hanson, but even excluding that, volumes were 14.8% ahead.  Ready-mixed concrete deliveries were 31.2% higher at 32.7Mm³, including 7Mm³ from Hanson in September, predominantly in Great Britain, Spain, Australia and Asia. 
By the end of 2010, HeidelbergCement anticipates the enlarged business to have achieved savings of around EUR350m, of which about 10% would have been achieved last year and a further 40% is expected during 2008.