Holcim: 2015 expected to be "solid year"

Holcim: 2015 expected to be "solid year"
18 November 2014

Holcim expects 2015 to be a “solid year” for the group as it aims to achieve substantial improvement of its results.

In a statement released ahead of today's Holcim Investor and Analyst Day 2014, the Swiss cement major said it anticipates 2015 like-for-like operating profit (excluding merger-related costs) to be in the range of CHF2.7-2.9bn (EUR2.2-2.4bn/US$2.8-3bn). Group companies in India, Indonesia, the USA, Mexico and the UK are being seen as the main growth drivers. The company also expects operating profit margin will be higher as higher volumes, better pricing and continued cost savings are expected to more than offset cost inflation.

In 2015 Holcim will also conclude its extensive expansion strategy and plans to reduce its capex to CHF1.5bn for 2015. Increasing capacity utilisation of existing plants coupled with continued cost reductions are expected to result in a further improvement of ROIC after taxes towards eight per cent.

CFO Thomas Aebischer says: “Holcim is the best positioned company in its industry to capture both the recovery in mature as well as the opportunities in emerging countries. Our current footprint will allow us to grow for several years without significant expansion needs, creating higher returns for our shareholders.”

Published under Cement News