HeidelbergCement advances in Asia and Africa, but does less well in Europe

HeidelbergCement advances in Asia and Africa, but does less well in Europe
Published: 07 February 2013


The preliminary figures from HeidelbergCement show an 8.7 per cent advance in turnover last year to €14,020m, or by 4.2 per cent on a comparative basis. EBITDA improved by a more modest 6.7 per cent to €2477m and the trading profit advanced by 9.5 per cent to €1613m, or by 5.6 per cent adjusting for currency movements and changes in the scope of consolidation. The number of employees declined by 1.1 per cent to 51,966, as a reduction of around people 1200 in North America and Europe was partially offset by taking on an additional 600 in growth markets such as India and Indonesia.

Group sales of cementitous materials increased by 1.4 per cent to 89Mt, but the aggregates volume declined by 4.4 per cent to 243Mt. Ready-mixed concrete deliveries were stable at 39.1Mm³ while shipments of asphalt fell by 9.8 per cent to 8.6Mt.

Northern & Western Europe

The northern & western European business did not have as favourable weather conditions as in the previous year and turnover declined by 2.7 per cent to €4201m. The EBITDA fell by 21.4 per cent to €577m and the trading profit dropped by 32.1 per cent to €290m. Shipments of cementitious materials were down by 3.9 per cent to 21.3Mt, while deliveries of aggregates declined by 8.7 per cent to 72.2Mt. Ready-mixed concrete deliveries were off by 4.6 per cent to 13.2m m³ while sales of asphalt dropped by 24.4 per cent to 2.8Mt. Demand for construction materials remained firm in Germany and in the Nordic region, but declined in Great Britain and in The Netherlands. Benelux prices were weaker. Ignoring the special factors that had helped the previous year's figures, the EBITDA showed a reduction of some 14 per cent.


Eastern Europe & Central Asia

In eastern Europe & central Asia the turnover improved by 3.1 per cent to €1435m, while the EBITDA declined by the same percentage to €317m and the trading profit came down by 11.5 per cent to €193m. The cementitous volume eased by one per cent to 17.2Mt, while aggregates shipments were down by 11.5 per cent to 19.2Mt and ready-mixed concrete deliveries fell by 17.5 per cent to 3.8Mm³. Volumes and prices for cement improved in Russia and in Central Asia, but shipments of both cement and downstream materials declined across most of central Europe. In the Ukraine, higher prices more than made up for the drop in volumes. Poland showed the strongest fall in volumes at some 22 per cent.


North America

North American turnover increased by 13.4 per cent to €3441, but excluding the exchange rate effects, the increase was a more modest 4.5 per cent. The EBITDA improved by 21.9 per cent to €577m and the trading profit rose by 42 per cent to €327m, in spite of climatic conditions reducing demand in the fourth quarter. Shipments of cementitous materials rose by 10.7 per cent to 11.7Mt and ready-mixed concrete deliveries improved by 6.9 per cent to 6.1Mm³, in both cased helped by the recovery in housebuilding activity. Sales of aggregates and asphalt, on the other hand, declined because of pressures on public sector spending and aggregates volumes declined by 1.2 per cent to 104.5Mt, while sales of asphalt was down by 1.9 per cent to 3.4Mt.

Asia-Pacific

The Asia-Pacific turnover rose by 17.6 per cent to €3477m and the EBITDA recovered by 24.7 per cent to €887m. The trading profit advanced by 28.9 per cent to €723m, helped by a record result from Indonesia, where the group holds a strong position.

Cement and clinker volumes improved by 3.9 per cent to 30Mt, with the strongest volume growth being seen in Indonesia and Bangladesh, while Chinese volumes were down. In downstream volumes, where Australia is an important contributor, shipments of aggregates eased by 0.5 per cent to 37Mt, but ready-mixed concrete deliveries advanced 12.5 per cent to 11.1Mm³ while asphalt sales edged ahead by 0.2 per cent to 1.9Mt.

Africa and Mediterranean

In the Africa and Mediterranean region, turnover moved ahead by 11 per cent to €1135m and the EBITDA rose by 24.1 per cent to €203m and the trading profit rose by 29.0 per cent to €166m. Shipments of cementitous materials edged up by 0.9 per cent to 9.2Mt, with notably strong growth coming from Ghana and Tanzania. Turkey showed stable volumes and better prices. Deliveries of downstream materials were negatively affected by the continued decline in Spanish construction activity and this led to aggregates deliveries being down by 3.6 per cent to 13.7Mt and ready-mixed concrete declined by 3.5 per cent at 4.9m m³. The asphalt business in Israel improved volumes by 1.7 per cent to 0.5Mt.

Trading

International trading volumes rose by 28 per cent, leading to a 27.1 per cent increase in volumes and generating a turnover27.1 per cent higher at €828m and the EBITDA rose by 95.2 per cent to €22m. The full results for 2012 and the outlook for 2013 will be published on the 14th of March.