HeidelbergCement’s 2004 turnover beats forecast

HeidelbergCement (HEIG.DE) reported on Tuesday an 8.8 percent rise in 2004 turnover thanks to higher cement prices and full consolidation of Indonesian unit Indocement. 

Turnover rose to EUR6.93bn from EUR 6.37bn. Sales volume rose to 65.2Mt from 51.1Mt in 2003. 

HeidelbergCement said late on Monday it would raise about EUR 270m  through a rights issue to strengthen its equity base after one-off charges for goodwill at Indocement and other assets caused a loss of up to EUR400m in 2004. 

The company said it would take advantage of attractive opportunities for growth to enlarge its international market position on the basis on a risk-free balance sheet. 

The German cement industry, helped by a cut in capacity, is extending its price recovery from 2003 when a price war for market share depressed cement prices. 

HeidelbergCement said it would focus on raising efficiency in all areas to further reduce costs significantly, as it expects a moderate rise in overall sales while demand in Germany is expected to decline.