Profitable business with cement

9th November 2005, 15:31, BBC
Holcim has improved significantly during the first three quarters of revenue and profit

The cement group Holcim increased its profit in the first nine months rose by over 70 percent. For the year, the Group is confident and is a good prospect of fiscal 2005. They benefit from good economic conditions in key growth markets, said the world's second largest cement company.
(Ap) The consolidated profit of Holcim increased in the first nine months of 2005 rose by 70.5% compared to 1.175 billion francs. The cement so that the company has exceeded analysts' expectations and made more profit after three quarters, as for the whole of last year.

Revenues grew by 34.0% in local currencies and by 35.3% to 13.425 billion francs. Operating EBITDA increased by 25.4% to 3.501 billion francs. Have contributed to this substantial increase despite higher energy and transportation costs and tougher price pressure, four out of five Group regions, it is said in the statement of Holcim.

High growth rate in North America
These include the Group regions North America (62.4%), Africa, Middle East (up 34.3%), Europe (up 28.1%) and Asia Pacific (+12.9%), while Ebitda in the company Latin America remained stable.



Excluding the newly consolidated this year, Aggregate Industries and Ambuja Cement Eastern and Cemento de El Salvador, an internal Ebitda growth amounts to 9.7 percent.

Consolidated operating profit rose 44.2% to 2.576 billion francs. The workforce increased by 31.2% to 61'541 employees. Cement sales rose in the first nine months rose 7.4% to 83 million tons. The aggregates were up by 55.8% to 122.3 million tonnes. Ready-mix concrete, the Group achieved an increase of 28.3% to 28.1 million cubic meters.

A healthy mix
To the very good financial results for the first nine months, according to Holcim the world's construction intact, global presence and the right mix of production sites in mature and emerging markets have contributed. Sales increases and cost savings, such as through the increased use of fossil fuels, would have supported the strong internal growth.

Holcim continues to benefit their own data on average from the good economic situation in key growth markets and expects to continue its positive development in the coming months. The Group reaffirmed that the long-standing internal operating profit growth is expected to be significantly exceeded by five percent.

Best starting conditions for 2006
For the full year 2005 is likely, internal operating EBITDA growth in the long term average of 5% rate of return. This is an excellent starting position for the fiscal year 2006, Holcim continues to write.

Analysts had predicted for the first nine months of average sales of 13'065 million francs, an operating profit of 2461 million francs and a profit of 1,159 million francs.