HeidelbergCement records cement sales of 122Mt in FY20

HeidelbergCement records cement sales of 122Mt in FY20
23 February 2021


HeidelbergCement’s preliminary, unaudited figures for the full year 2020 saw the result from current operations before depreciation and amortisation rising by six per cent LfL to a record EUR3.7bn while implementation of the company's COPE action plan led to cash savings of around EUR1.3bn. Despite the decline in sales volumes, group revenue for 2020 decreased by 6.6 per cent to EUR17.6bn (previous year: EUR18.9bn).

Dr Dominik von Achten, chairman of the Managing Board of HeidelbergCement, said: "We were able to not only reach but exceed our forecast for all key figures." 

Total cement sales reached 122Mt in FY20, down 3.1 per cent from 125.9Mt in FY19. Aggregates sales  totalled 296.3Mt, a drop of 3.9 per cent from 308.3Mt in FY19, while ready-mix sales fell 7.4 per cent YoY to 46.9Mm3 from 50.7Mm3 in FY19. Asphalt sales slipped 2.6 per cent to 11Mt from 11.3Mt in FY19.

FY20 regional results
In North America cement sales amounted to 15.6Mt, down 3.5 per cent from 16.1Mt in FY19. Aggregates sales slipped 1.7 per cent to 125.9Mt from 128.1Mt in FY19. Ready-mix sales rose to 7.8Mm3, up 0.9 per cent from 7.7Mm3 in FY19. Asphalt sales remained stable at 5Mt. North American revenues totalled EUR4.62bn, down 3.4 per cent from EUR4.78bn in FY19.

In western and southern Europe cement sales totalled 28.2Mt, down 5.6 per cent rom 29.9Mt in FY19. Aggregates reached 78.2Mt, representing a 6.4 per cent decrease from 83.5Mt in FY19. Ready-mix sales declined 6.4 per cent to 17.2Mm3 from 18.4Mm3 in FY19. Asphalt sales fell 2.8 per cent to 3.5Mt from 3.6Mt in FY19. Western and southern European revenues totalled EUR4.96bn, down three per cent from EUR5.11bn in FY19.

Northeastern and eastern Europe and central Asia saw cement sales total 23.6Mt, down 1.4 per cent from 23.9Mt in FY19. Aggregates sales rose one per cent to 48.7Mt from 48.2Mt in FY19. Ready-mix sales advanced by 11.5 per cent to 6Mm3 from 6.8Mm3 in FY19. Revenues in the region reached EUR2.85bn, down 1.2 per cent from EUR2.89bn in FY19.

In the Asia-Pacific region cement sales totalled 32.9Mt, a 7.9 per cent decrease from 35.8Mt in FY19. Aggregates sales reached 36.1Mt, down 9.3 per cent from 39.8Mt in FY19. Ready-mix sales fell 11.9 per cent to 10.6Mm3 from 12Mm3 in FY19. Asphalt sales were stable at 2.3Mt. Revenues for the region declined 11.1 per cent to EUR3bn from EUR3.37bn in FY19.

In Africa and the eastern Mediterranean basin, cement sales reached 21.2Mt, up 8.6 per cent on 19.5Mt in FY19. Aggregates sales totalled 7.4Mt, down 16.7 per cent from 8.9Mt in FY19. Ready-mix sales slipped 4.7 per cent to 5Mm from 5.3Mm3 in FY19. Asphalt sales totalled 0.3Mt, a 26.1 per cent decrease from 0.4Mt in FY19. Regional revenues climbed to EUR1.77bn from EUR1.69bn in FY19.

4Q20 results
Group revenues in the 4Q20 totalled EUR4.47bn, down 2.5 per cent from EUR4.57bn in the 4Q19. Cement sales reached 31.9Mt in the 4Q20, a 1.7 per cent increase from 31.4Mt in the 4Q19. Aggregates sales totalled 75.5Mt in the 4Q20, up 0.6 per cent from 75Mt in the 4Q19. Ready-mix sales slipped in the 4Q20 to 12.5Mm3, down 1.9 per cent from 12.7Mm3 in the 4Q19. Asphalt sales were stable at 2.9Mt. 

North America cement sales in the 4Q20 reached 3.9Mt, up 2.2 per cent on the 4Q19. Aggregate sales rose by three per cent to 31.1Mt from 30.2Mt in the 4Q19. Ready-mix sales reached 1.9Mm3, up 1.8 per cent from the 4Q19. Asphalt sales reached 1.2Mt, slipping 0.3 per cent when compared with the 4Q19. Revenues totalled EUR1.1bn in the 4Q20, representing a drop of 5.1 per cent from 1.16bn in the 4Q19.

Western and southern Europe cement sales totalled 7.5Mt in the 4Q20, up 3.9 per cent from 7.2Mt in the 4Q19. Aggregates sales advanced 20.4Mt from 20Mt in the 4Q19. Ready-mix sales reached 4.6Mm3, an increase of 4.5 per cent from 4.4Mm3 in the 4Q19. Asphalt sales totalled 0.9Mt, up 8.9 per cent on the 4Q19. Revenues in the region totalled EUR1.3bn, a 5.2 per cent advance from EUR1.23bn in the 4Q19.

In northern and eastern Europe and central Asia, cement sales totalled 5.7Mt in the 4Q20, up 0.3 per cent on 4Q19. Aggregates sales totalled 12.4Mt, down 2.5 per cent from 12.7Mt in the 4Q19. Ready-mix sales reached 1.6Mm3, a 10.6 per cent decrease from 1.7Mm3 in the 4Q19. Revenue in the region totalled EUR712m, slipping by 0.9 per cent from EUR719m in the 4Q19.

The Asia-Pacific region achieved cement sales of 9.1Mt in the 4Q20, down 5.1 per cent from 9.6Mt in the 4Q19. Aggregates sales decreased 3.6 per cent to 9.6Mt from 10Mt in the 4Q19. Ready-mix sales fell 9.6 per cent  to 2.8Mm3 in the 4Q20 from 3.1Mm3 in the 4Q19. Asphalt sales remained at 0.7Mt in the 4Q20. Revenues in the region in the 4Q20 saw a 9.6 per cent decline to EUR802m from EUR886m in the 4Q19.

Africa and the east Mediterranean basin had cement sales of 5.5Mt in the 4Q20, up 14.3 per cent from 4.8Mt in the 4Q19. Aggregate sales rose to 2Mt, declining by 12 per cent from 2.3Mt in the 4Q19. Ready-mix sales reached 1.4Mm3 in the 4Q20 as they did in the 4Q19. Asphalt sales totalled 0.05Mt, down from 0.1Mt in the 4Q19. Revenues totalled EUR456m in the 4Q20, improving from EUR425m in the 4Q19.

Positive initial market outlook 2021
HeidelbergCement anticipates demand to develop positively in many markets in 2021. "We have made a good start to 2021," said Dr Dominik von Achten. "There should be a tailwind from infrastructure programmes, for example in the USA, Australia, India and Italy. I am also confident about private residential construction. We will have to wait and see how office and commercial construction develops. All in all, visibility remains relatively low."

Sustainability goals
The company is making great progress in the industrial scaling of CO2 reduction and capture (CCU/S) technologies. Three CCU/S projects are now entering the next phase: the CCS project in Brevik, Norway, is the world's first industrial-scale CCS project in the cement industry and is scheduled for completion by 2024. In the "catch4climate" pilot project, HeidelbergCement, together with three other cement manufacturers, will build and operate a demonstration plant for CO2 capture on a semi-industrial scale at the Mergelstetten cement plant, Germany. In the "LEILAC 2" pilot project, the industrial scaling of the LEILAC technology will start at the German HeidelbergCement plant in Hanover with completion expected by 2025.

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