HeidelbergCement reports 4Q10 net profit
HeidelbergCement reported a profit in the fourth quarter of 2010 and also expects higher turnover and operating income in 2011.
The company’s fourth-quarter group share of profit was EUR100m, compared with a loss of EUR377m YoY.
Additional ordinary result, which includes items like restructuring costs, asset and goodwill impairments and other one-time gains and losses, was a loss of EUR69m, narrower than the previous year’s EUR506m.
Net income from continuing operations was EUR143m, reversing from a loss of 362 million euros in the same quarter in 2009.
The company’s quarterly turnover totalled EUR2.89bn, up 5.8 per cent from EUR2.73bn a year ago. On a like-for-like basis, turnover rose 3.2 per cent.
Western and Northern Europe posted a one per cent decline in turnover, hurt by severe winter weather. Eastern Europe-Central Asia also reported an 11.2 per cent drop in turnover. Meanwhile, North America’s turnover rose 4.9 per cent in the quarter, helped by volume growth in all business lines and price increases. Asia-Pacific revenue also was up 18 per cent on the back of strong results in Indonesia and Bangladesh due to volume growth and higher prices.
Looking forward, the company expects sales growth in 2011, based on demand development and capacity additions. The company also projects that sales growth, price increases and cost savings will lead to higher turnover and operating income in 2011. The company added that the global economic recovery is expected to continue in 2011, but at a slower pace than in 2010. Emerging economies of Asia and Africa will continue to lead over mature markets in North America and Europe in growth.
Published under Cement News
