LafargeHolcim reports positive 9M19 results
LafargeHolcim has reported net sales of CHF20.2bn (US$20.36bn) in the 9M19, representing a 2.1 per cent fall YoY, or a four per cent increase on a like-for-like (LfL) basis. Recurring EBITDA (pre-IFRS16) rose to CHF4.543bn from CHF4.351bn in the year-ago period.
Cement sales reached 156.4Mt in the first nine months of 2019, a modest climb of 0.7 per cent on a LfL basis. Net sales for the segment finished at CHF13.294bn from CHF13.573bn in the 9M18, while recurring EBITDA (pre-IFRS16) advanced to CHF3.551bn from CHF3.449bn.
In the 3Q19, the company’s announced net sales of CHF7.142bn, down three per cent YoY, or improving 4.9 per cent on a LfL basis. Recurring EBITDA (pre-IFRS16) increased to CHF1.881bn from CHF1.867bn in the corresponding period of 2018.
"3Q is the fifth consecutive quarter of over-proportional growth in profitability and we are on track to achieve all targets for 2019. I would like to congratulate all employees for executing Strategy 2022 with high speed and impressive results," said Jan Jenisch, CEO.
"Our financial discipline is generating value and we are making significant progress in cash conversion and in deleveraging our balance sheet. We expect the positive dynamics to continue into the fourth quarter and we are confident that we will deliver a strong full-year performance and achieve a new level of balance sheet strength," added Mr Jenisch.
Regional performance (9M19)
The company’s Asia Pacific region saw cement sales decline 1.9 per cent LfL to 54.7Mt. Sales of aggregates and ready-mix decreased 2.9 per cent and 1.3 per cent, respectively.
Europe recorded cement sales of 35.4Mt in the 9M19, an increase of 4.3 per cent on a LfL basis compared to 33.9Mt in the year-ago period. Aggregate sales fell to 89.1Mt from 91Mt, while ready-mix sales improved to 14.6Mm3 from 14.3Mm3.
The Latin America region stabilised in the 3Q19, with a good performance in Colombia and cement volume growth in Brazil. Markets in Mexico and Ecuador were softer while effective cost and price management partially mitigated these challenges, according to a press release. Sales of cement dipped 1.4 per cent on a LfL basis to 18.7Mt.
North America achieved strong results, with good volume growth in all business segments. In particular, cement sales advanced 6.1 per cent on a LfL basis to 15.8Mt. Positive price momentum and easing cost inflation further supported profitable growth in the US, while there was a softer market environment in Canada, stated the company.
In its Middle East & Africa unit, cement sales slowed 0.6 per cent on a LfL basis, finishing at 26.8Mt in the 9M19. Aggregates sales decreased 25.2 per cent (5Mt) and ready-mix sales were down 8.5 per cent (2.8Mm3).
Outlook
LafargeHolcim expects the positive momentum of the first nine months of 2019 to continue into the final quarter, supported by market growth in north America, stabilising cement demand in Latin America and demand growth in the Europe and Asia Pacific regions.
