Holcim beats guidance for fourth quarter recurring operating profit

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The new logo of Swiss cement manufacturer Holcim is seen on a concrete block during the Holcim Capital Markets Day in Basel, Switzerland, November 18, 2021. REUTERS/Arnd Wiegmann

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ZURICH, Feb 25 (Reuters) – Holcim (HOLN.S) beat analysts’ forecasts for recurring operating profit for the fourth quarter of 2021, and the world’s largest cement maker said on Friday it expects growth momentum to continue in all regions this year become.

Holcim reported a 5.6 percent increase in recurring earnings before interest and taxes (EBIT) to 1.09 billion Swiss francs ($1.18 billion) in the fourth quarter, better than 1.06 billion Swiss francs forecast by analysts.

Revenue for the three months ended December 31 rose 16.7% to 6.99 billion Swiss francs, better than an expected 6.73 billion Swiss francs.

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For 2022, Holcim expects sales to increase by 6% on a like-for-like basis, eliminating the impact of currency fluctuations and acquisitions.

It also said it expects growth in recurring operating EBIT and free cash flow of more than 3 billion francs after reporting 2021 figures of 3.26 billion francs.

For 2021, it proposed a dividend of CHF 2.20, compared to CHF 2.00 for 2020.

Holcim, which also supplies concrete, aggregates and precast concrete, is seen as a flagship for the broader construction market.

For full-year 2021, the company reported a record 11.3% increase in net sales, while recurring profit also hit a new high of 4.6 billion Swiss francs.

Chief Executive Jan Jenisch said: “2021 was a record year for Holcim, achieving new levels of performance. What makes me most proud is how we have weathered the COVID pandemic with such exceptional resilience.”

German competitor HeidelbergCement (HEIG.DE), the world’s second-largest cement maker, said Thursday it expects both sales and core profit to rise in 2022 on global infrastructure programs and continued demand for new homes.

($1 = 0.9230 Swiss Francs)

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Reporting by John Revill Editing by Miranda Murray and Michael Shields

Our standards: The Thomson Reuters Trust Principles.

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