German cement maker HeidelbergCement AG said Monday it saw an 86% jump in its net profit in the first nine months of the year, owing largely to an acceleration of growth in Europe. HeidelbergCement’s net profit rose to EUR721 million from EUR387 million in the first nine-months of the year. Profit for the financial year exceeded last year’s amount considerably and reached Euro 790m after Euro 438m previously.
In the first nine months, the cement and clinker sales volumes of HeidelbergCement rose by 14.3% to 58.8Mt versus 51.4Mt. Excluding consolidation effects, the increase amounted to 8.9%.
The growth in Europe was strongest, followed by the Africa-Asia-Mediterranean Basin Group area. In North America, sales volumes decreased during the third quarter in comparison with the previous year.
Ready-mixed concrete sales volumes grew by just under 12% in total to 23.2 million cubic metres 20.8 million cubic meters; an increase of 14% was recorded in sales volumes of aggregates, which reached 76.6 million tonnes compared to 67.1 million.
HeidelbergCement consistently pursued its strategy of geographical diversification with a focus on cement in growing markets. Important steps were taken to expand our market positions in Eastern Europe and Asia by means of acquisitions in Russia, India and China. Number of employees increased due to new consolidations.
In the first nine months of 2006, the number of employees across the Group amounted to just under 43,000. The increase from the consolidation of its activities in Kazakhstan and the expansion in the Ukraine outweighed the decrease resulting from restructuring measures in Europe and Asia.