HeidelbergCement benefits from strong North American improvement

HeidelbergCement benefits from strong North American improvement
Published: 30 July 2015


HeidelbergCement's first-half results show an 11.2 per cent increase in turnover to EUR6470m. EBITDA improved by 22.3 per cent to EUR1052m, while the trading profit advanced by 27.5 per cent to EUR672m. The net interest charge declined by 5.9 per cent to EUR285m and the pretax profit rose by 69.9 per cent to EUR406m and the net attributable profit improved by 70 per cent to EUR148m. Net debt at the end of June was 20.1 per cent lower than a year earlier at EUR6305m, giving a gearing level 34.9 per cent lower at 40.7 per cent. Capital investments in the period declined by 3.1 per cent to EUR406m. The workforce declined by 0.7 per cent to 45,558 employees. For the full year, HeidelbergCement expects a significant increase in turnover, operating profit and running profit.

Group cement and clinker deliveries increased by 0.1 per cent to 38.80Mt, while the aggregates tonnage rose by 4.4 per cent to 113.43Mt and ready-mixed concrete deliveries improved by 1.2 per cent to 17.40Mm³, while asphalt sales were 5.4 per cent ahead at 4Mt. HC Trading saw trading volumes improve by 5.1 per cent to 8Mt and the trading volume in coal and petcoke increased by 13.2 per cent to 3.4Mt. Turnover from trading in cementitious and other materials was 7.3 per cent higher to EUR572m, while EBITDA declined by 9.1 per cent to EUR13m.

Turnover in western and northern Europe improved by 5.8 per cent to EUR2022m and EBITDA rose by 21.5 per cent to EUR253m. Cement and clinker shipments were one per cent lower at 10.29Mt, with strong volumes in Great Britain and Sweden largely making up for weaker demand elsewhere. Aggregates shipments rose by 1.3 per cent to 31.44Mt and ready-mixed concrete deliveries increased by 0.4 per cent to 6.21Mm³. The asphalt volume advanced by 8.2 per cent to 1.54Mt. The turnover in cement improved by 1.9 per cent to EUR880m and the aggregates turnover rose by 11.7 per cent to EUR447m.

The eastern European and central Asian turnover declined by 6.5 per cent to EUR500m while EBITDA fell by 11.9 per cent to EUR66m. Cement deliveries were five per cent lower at 7.42Mt, but increased deliveries were seen in the Czech Republic. Higher dispatches were also reported in Kazakhstan, helped by the new 0.8Mta plant. Overall aggregates shipments advanced by 12.7 per cent to 9.13Mt, principally helped by Kazakhstan, Romania and Slovakia. Turnover was 11.8 per cent ahead at EUR47m. Ready-mixed concrete deliveries advanced by 17.1 per cent to 1.40Mm³ and turnover rose by 17.4 per cent to EUR78m.

The Asia-Pacific turnover recovered by 6.3 per cent to EUR1422m and EBITDA rose by 7.5 per cent to EUR362m. However, cement and clinker deliveries declined by 3.5 per cent to 11.61Mt, but turnover improved by 8.5 per cent to EUR761m. In Indonesia Indocement’s volumes declined, but margins improved thanks to good cost management. The Indian subsidiary saw a reduction in demand and weak pricing. Bangladesh improved thanks to higher volumes and lower raw material costs. The Chinese joint ventures in the Guangdong and Shaanxi provinces both experienced weaker pricing. The joint venture Cement Australia showed an improvement, helped by lower energy costs. Aggregates shipments declined by 2.5 per cent to 17.87Mt, but the turnover was 8.3 per cent higher at EUR273m. Ready-mixed concrete deliveries were off by 3.7 per cent to 5.30Mm³ and the asphalt volume fell by 5.6 per cent to 1.04Mt.

North American turnover improved by 29.9 per cent to EUR1640m and EBITDA rose by 51.8 per cent to EUR290m and the trading profit improved by 74.9 per cent to EUR173m. Cement deliveries were 2.3 per cent higher at 5.63Mt and the cement turnover improved by 28.4 per cent to EUR621m. The growth in cement volumes was most pronounced in the northern region of the USA, while Canada was only slightly ahead and southern USA experienced very wet weather. Aggregates deliveries improved by seven per cent to 49.65Mt and the turnover was 34.4 per cent higher at EUR627m. Ready-mixed concrete deliveries improved by 4.1 per cent to 2.97Mm³, with both aggregates and concrete volumes in Canada being substantially ahead. Asphalt shipments advanced by 13.9 per cent to 1.25Mt.
  
Turnover in Africa and the Mediterranean improved by 16.7 per cent to EUR524m and EBITDA rose by 27.9 per cent to EUR131m. Cement and clinker shipments advanced by 18.6 per cent to 3.85Mt and the turnover was 19.8 per cent higher at EUR365m. Cement sales in Africa accounts for the total consolidated cement volume, which showed an underlying increase of 20.1 per cent. However, Ghana recorded lower volumes as demand fell and imports increased. The Turkish joint venture did better, thanks to strong pricing. Aggregates shipments improved by 5.6 per cent to 5.66Mt and the revenue grew by 13.3 per cent to EUR48m as demand in Spain recovered, while in Israel turnover improved and results were stable. Ready-mixed concrete deliveries increased by 2.1 per cent to 1.54Mm³ while asphalt sales in Israel were unchanged at 0.21Mt.