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Cement maker Holcim reports improved quarterly profit

May, 15 2012

(Zurich, Switzerland) -- Swiss cement giant Holcim reported a slight rise in net profit for the first quarter as demand grew for construction materials in North America, Africa and the Middle East.

The world’s number two cement maker behind France’s Lafarge posted a 1.2 percent growth in net profit to 10 million Swiss francs (8.3 million Euros).

Core earnings fell 1.1 percent to 745 million francs while net sales increased 2.2 percent to 4.8 billion francs between January and March, Holcim said in a statement.

The company said it benefited from good economic conditions in Asia and Latin America but sales dropped in Western and Eastern Europe due to the harsh winter which brought many construction sites “to a temporary standstill” in February.

There was by contrast an increase in construction activity in North America due to the mild winter there but the budget deficit meant the industry was still operating in a “difficult environment,” particularly in the infrastructure sector, Holcim said.

The firm said it expected demand to rise this year in emerging markets and should remain stable in Europe “provided that the situation is not undermined by further systemic shocks”.

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