- Net income significantly higher
- Adjusted operating profit and margin increase despite lower volumes
- Margins improve in India although cement volumes were temporarily affected by lower demand
- Rebound in the United States continues
- Different weather pattern in Europe with stronger winter than in last year’s quarter
- Group well positioned and prepared for merger with Lafarge
Bernard Fontana,chief executive, said:”Holcim reported robust development in the first quarter 2015, with an increase in financial performance despite a different weather pattern and some volume declines compared to a very strong previous year’s quarter. Holcim also generated higher cash flow from operating activities and increased net income significantly supported by the gain from the divestment of the Group’s minority shareholding in Siam City Cement.”
Holcim continued to operate in a weak global economic environment that was characterized by uncertainty and moderate growth prospects. The development was positively impacted by lower oil prices but at the same time investment weakness more than offset these effects in both advanced and emerging markets. However, based on its strong geographic footprint, focus on prices, disciplined cost management, and previous restructuring, Holcim was able to mitigate the adverse economic effects. Following the exceptionally strong first quarter 2014, cement deliveries declined as all Group regions except North America and Latin America sold less volume. However, in important markets including Mexico, the United States, and the Philippines more cement was sold. Aggregate shipments increased thanks to Holcim Germany, Aggregate Industries UK, and Aggregate Industries US. Ready-mix concrete volumes were down.