HeidelbergCement reports record 2017

HeidelbergCement reports record 2017
22 March 2018

Despite a challenging environment, HeidelbergCement has announced at 14 per cent YoY increase in revenues to EUR17.3bn in 2017 from EUR15.2bn in 2016 although on a pro-forma basis, ie taking into account the contributions of Italcementi for the 1H16, the increase was more modest at two per cent.

The company's sales volumes of cement, aggregates and ready-mixed concrete increased significantly and reached new records, particularly due the acquisition of Italcementi. Total cement sales reached 102.8Mt, up 22 YoY while aggregates volumes reached 272Mt, representing a 12 per cent YoY increase. Ready-mix concrete sales volumes rose 11 per cent to 42.5Mm3 while asphalt sales edged up three per cent to 9.4Mt.

On a pro-forma basis, sales volumes rose slightly for cement (up one per cent to 125.7Mt) and moderately for aggregates (up one per cent to 287.4Mt), while a slight decline was recorded in ready-mixed concrete (-3 per cent to 47.2Mm3). In cement and aggregates, the company benefitted from the continued recovery in North America and Europe, the positive development in Australia, and a turnaround in individual emerging countries, such as Indonesia and Ghana.

Net profit advanced by 27 per cent to EUR1.06bn in 2017, when compared with EUR831m the previous year. The group share of profit rose by 40 per cent to EUR918m from EUR657m over the same period.

The company’s net debt fell from EUR8.999bn in 2016 to EUR8.695bn last year, but gearing increased from 50.6 per cent to 54.2 per cent.

"2017 was an exceptional year for HeidelbergCement," states Dr Bernd Scheifele, chairman of the Managing Board of HeidelbergCement. "In its history stretching back over 140 years, HeidelbergCement has never sold more cement, concrete, gravel, and sand than in 2017. New record figures were also achieved in revenue and result from current operations. Moreover, we have fulfilled the promise we made when we announced the Italcementi acquisition, which was to create added value for our shareholders. The successful integration of Italcementi played a key role in this respect. The creation of value is reflected in the relatively low non-recurring costs of around EUR345m, compared with the synergies of EUR513m realised by the end of 2017. As a result, we were able to raise the earnings per share by a disproportionately high 36 per cent and propose the eighth consecutive increase in dividends with a new record value of EUR1.90."

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