Switzerland: Holcim has announced better-than-expected results for 2014, including higher cement sales volumes and higher net sales. It has also announced that its non-controlling interest of 27.5% in its joint venture Siam City Cement Public Company Limited is available for sale.
Cement sales volumes in 2014 exceeded those in 2013 due to a stronger economy in North America and growth momentum in some emerging markets such as India, the Philippines, Indonesia and Mexico, offsetting a challenging situation in Latin America. Consolidated cement sales were up by 1% year-on-year to 140Mt. In the fourth quarter of 2014, cement volumes decreased slightly by 0.6% to 34.4Mt.
Holcim's net sales grew by 3% on a like-for-like basis. Growth mostly resulted from price improvements in many regions, particularly in North America, against the backdrop of a favorable market environment and in Latin America in response to cost inflation. An unfavorable currency effect of 5.2% and negative changes in consolidation structure impacted the consolidated net sales performance in 2014, which was down by 3.1% to Euro17.8bn.
Like-for-like operating earnings before interest, taxes, depreciation and amortisation (EBITDA) adjusted for merger and restructuring costs of Euro128m increased by Euro200m or 5.5% in 2014. Consolidated operating EBITDA however was down by 3.8% to Euro3.49bn mainly as a result of negative currency effects and merger and restructuring related costs.
In 2014, operating profit adjusted for merger and restructuring costs of Euro139m went up by Euro232m or 10.6% year-on-year. Consolidated operating profit, however, was down by 1.7% at Euro2.16bn. Net income increased by 1.5% to Euro1.51bn. In 2014, net financial debt was Euro8.97bn, Euro170m up from Euro8.79bn mainly due to an unfavorable currency impact of Euro233m.
During the fourth quarter of 2014, Holcim's consolidated net sales increased year-on-year by 1.9% to Euro4.53bn. Operating EBITDA reached Euro935m, up by 6.5% year-on-year. Adjusted for merger and restructuring costs booked in the quarter of Euro52m, like-for-like operating EBITDA growth reached Euro103m or 11.8%. Operating profit increased by 6.9% to CHF 598 million. Excluding merger and restructuring costs of Euro53.9m, operating profit growth reached Euro101m or 19.2%. Net income was up markedly by 43.5% to Euro426m.
Holcim expects that the global economy will continue its gradual recovery in 2015. Key construction markets of Holcim in countries like the USA, India, Indonesia, Mexico, Colombia, the UK and the Philippines are expected to be the main growth drivers. Europe overall is expected to have 'flat' development. Latin America will continue to face uncertainties in countries such as Argentina and Brazil, but should show slight growth in 2015. The Asia Pacific region is expected to grow, although at a modest pace. Africa and the Middle East is expected gradually to improve. Cement volumes should increase in all group regions in 2015 with the exception of Europe.