High Energy Costs Reduce HeidelbergCement Balance – New Savings Program 11.8.18

HEIDELBERG (awp international) – HeidelbergCement Group Building Materials in the third quarter benefited from the boom in Germany and global infrastructure programs. Significantly higher energy costs and adverse weather conditions, however, have slowed, especially in the US. As a result, Heidelberger set its annual target for operating profit by mid-October (Ebitda said). Now, the company wants to face a new austerity program, as Dax announced on Thursday in Heidelberg. It is necessary to save on sales and administration costs of EUR 100 million. In addition, the portfolio should be optimized.

From July to September, sales grew 7 percent year-on-year to € 4.9 billion. HeidelbergCement performed better than experts expected. Adjusted for currency effects, yields would even increase by ten percent. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 2 percent to 1.04 billion euros. Higher energy costs and heavy rain in the US have been a major burden. The result was shareholders' profit of 539 million euros. That was about twelve percent more than a year ago. Contribution factors included lower financial costs and lower taxes. / Mne / jha /

Source link