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[November 2007]
HeidelbergCement Benefits From Hanson Acquisition
In the first nine months of 2007, HeidelbergCement’s turnover increased by 22.2% to €7.254 billion (previous year: €5.935 billion). This was due in particular to the consolidation of Hanson for the first time in September and the contributions made by the countries of Eastern Europe and Central Asia, as well as Norway, Africa, Asia and Turkey.
“In North America we benefit from our strong positions in Western Canada and on the east coast of the USA,“ commented Dr Bernd Scheifele, CEO of HeidelbergCement, on the stable development of turnover and improvement in operating income in this area.
HeidelbergCement’s cement and clinker sales volumes grew by 11.5% to 65.5 million tonnes (previous year: 58.8 million tonnes) during the reporting period. The strongest growth was achieved in the Asia-Australia-Africa-Mediterranean Group area, followed by Europe-Central Asia. The inclusion of Hanson for the first time in September led to a considerable increase in volumes of aggregates as well as ready-mixed concrete. In most market regions, sales volumes also improved on a comparable basis. Sales volumes of aggregates across the group rose by 55.4% to 98.1 million tonnes (previous year: 63.1 million tonnes); deliveries of ready-mixed concrete increased by 14.5% overall to 21.3 million cubic metres (previous year: 18.6 million cubic metres).
An increase of 40.9% was recorded in operating income, which reached €1.343 billion (previous year: €953 million). The marked organic growth of 29.1% was attributable to higher sales volumes, price adjustments and increases in efficiency. By far the biggest contribution to the increase in results came from Europe-Central Asia.
Sustained growth and one-off effects, particularly in the second and third quarters, led to an increase in profit before tax from continuing operations, taking the total to €2.133 billion (previous year: €1.002 billion). Taxes on income rose by €55 million to €371 million (previous year: €316 million). The disproportionately small increase in taxes is due to the below-average taxation of capital gains. The net income after tax from continuing operations (excluding maxit Group) improved to €1.762 billion (previous year: €687 million). The Group share in profit rose to €1.829 billion (previous year: €526 million); like for like it increased by 42%.
The company said that initial steps in the tightly organised Hanson integration process have already been successfully taken. Integration teams made up of experts from Hanson and HeidelbergCement are analysing the processes at the most important locations, making performance comparisons and identifying potential improvements. The company added that its high expectations for the quality of the management and the production facilities had been confirmed. The implementation of the organisational changes will start at the beginning of 2008.
ENDS