HeidelbergCement has recorded a seven per cent decline in revenue to EUR3.93bn for the first quarter of 2020, compared with EUR4.24bn in the year-ago period.
The company saw sales volumes across all lines increase in January and February, however, its volumes from mid-March were severely affected by the coronavirus pandemic. As a result, total cement and clinker sales volumes decreased three per cent YoY to 27.7Mt from 28.6Mt. Deliveries of aggregates also fell four per cent to 60.1Mt in the 1Q20, while ready-mixed concrete sales were down six per cent to 10.7Mm3.
"The positive start to the year demonstrates that HeidelbergCement is very well positioned even in difficult times. When the economy picks up again and construction activity in our markets returns to normal, we will still have good, perhaps even better prospects for sustainable and profitable growth," said Dr Dominik von Achten, chairman of the Managing Board.
Dr Achten also highlighted the company’s COPE action plan, which aims to minimise non-essential expenses and maintain high liquidity levels. The objective from the plans is to reduce expenses by EUR1bn.
HeidelbergCement has also decided to suspend its progressive dividend policy. Therefore, the Managing Board and Supervisory Board will propose a dividend of EUR0.60 per share for the 2019 financial year at the AGM. Originally, the dividend proposal was EUR2.20 per share.
Going forward, the company expects a negative impact on revenue and results in 2020 but states that developments in the 2H20 will be key to determine how quickly the industry can return to pre-crisis levels.
"Some countries have relaxed the protective measures a little, while others are continuing to pursue very restrictive policies. It therefore remains difficult to provide an outlook for the year. However, our measures from the COPE action plan are already proving highly effective. We will weather the crisis very well," said Dr Achten.
