27 October 2017
Switzerland: LafargeHolcim has grown its sales and earnings on a like-for-like basis so far in 2017. Its net sales rose by 4.3% on a like-for-like basis to Euro16.7bn in the first nine months of 2017 from Euro17.5bn in the same period in 2016. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) adjusted rose by 9.2% to Euro3.69bn. Cement sales volumes fell to 156Mt from 177Mt although this was reported as a rise of 1.8% on a like-for-like basis.
The cement producer attributed its gains to positive contributions from markets in Latin America, North America and Europe. However, market conditions were reported to be challenging in Asia Pacific and Middle East Africa where it said that actions are being taken to address weakness in key countries.
“While the company delivered solid quarterly results, they do not reflect our full potential. As the market leader, we will hold ourselves to a higher standard than anyone else in our sector,” said Jan Jenisch, group chief executive officer (CEO) of LafargeHolcim. “Today we have reset expectations for the group’s outlook to a level that reflects the current business dynamics. While I am reviewing the business, I have an immediate focus on simplification, cost discipline and performance management.”
LafargeHolcim in talks with PPC 27 October 2017
South Africa/Switzerland: LafargeHolcim says it is in talks with the board of directors of Pretoria Portland Cement (PPC) regarding a possible transaction in Africa. It added that no agreement with PPC has yet been reached and no assurance could be given at this stage that a transaction will materialise.
Canada’s Fairfax Financial Holdings with AfriSam made an offer for PPC in early September 2017. However, PPC said that the offer was ‘undervalued.’ Nigerian company Dangote Cement has also said that it is interested in buying PPC for the ‘right’ price.