European building materials sector shows resilience

European building materials sector shows resilience
17 July 2020

Following the downturn in activity for the French construction materials sector in April, the following month saw the beginnings of a sequential recovery and even more impressive results were noted in June, according to a CIC Market Solutions (France) report.

The country’s ready-mix sector saw activity return from -62 per cent YoY in April to +14-20 per cent in June, while distribution activity recovered to +12-14 per cent in the same month.

The positive boost for the sector has stimulated discussions that original full-year earnings forecasts may have been placed too low.

Illustrating exactly this, CIC Market Solutions has also noted how HeidelbergCement’s recent earning release was surprisingly resilient compared to expectations. While the full report will be released on 30 July, the company’s 2Q EBITDA is expected to be down just 4.9 per cent YoY.

All the above factors contribute to a positive outlook for the European building materials sector going forwards.

Published under Cement News