LafargeHolcim’s FY15 results show a 4Q15 net loss of CHF2.86bn (US$2.94bn), including CHF3bn impact of asset impairment and other charges. The company’s net debt level was recorded at CHF17.3bn (US$17.8bn), while 4Q15 cash flow was CHF813m (US$839.6m) after adjusting for one-off items of CHF166m.

The group’s 4Q15 results were impacted by challenges in the markets of Brazil, Switzerland, China, Indonesia, Zambia, Nigeria and Azerbaijan. Lower CO2 revenues and adverse foreign exchange movements also affected results, said LafargeHolcim.

However, the group was encouraged by positive developments in the USA, Mexico, Argentina, the Philippines, Australia and the UK.

Significant progress was also made in terms of integration and merger synergies are ahead of plan with CHF130m on operating EBITDA versus CHF100m target in 2H15, of which CHF94m were from the 4Q15.

Eric Olsen, CEO of LafargeHolcim, said: “In a challenging environment in selected markets, we have exceeded all our 2015 commitments in terms of capex, synergies, and net debt reduction. Our focus on cash flow delivered solid results in 4Q15. We have also made significant progress on our divestment plan, while accelerating the pace of integration across the group and cost management actions.

“Many of the key elements of the merger are now behind us. Our organisation is in place; synergies will continue to gain momentum in 2016 with notably more than CHF450m of incremental EBITDA synergies expected for this year; and we have taken decisive actions to further adjust and streamline our costs, notably in the most difficult markets.

“Overall, we see demand in our markets growing 2-4 per cent during 2016. Emerging markets will continue to grow overall, supported by their strong long-term fundamentals and despite the challenging evolution in some of these markets. Given our footprint, we are well placed to benefit from the dynamic conditions in many of our key markets.

“We expect to see the combined effect of synergies, additional cost reductions and a strengthening pricing environment driving solid progress towards our 2018 objectives. Free cash flow generation is the key measure of our value creation strategy. With strict capital allocation discipline and the maximisation of our cash flow, we are committed to maintaining solid investment grade rating and returning cash to shareholders.”