LafargeHolcim recorded 3Q20 net sales of CHF6.455bn (US$7.046bn), down 9.6 per cent on the 3Q19. Recurring EBIT totalled CHF1.45bn in the 3Q20, rising 1.9 per cent YoY.

Group cement volumes saw a modest decline of one per cent YoY to 52Mt from 52.5Mt in the 3Q19, with the segment's net sales falling nine per cent YoY to CHF4.12bn from CHF4.51bn.

For the first nine months of the year, group net sales reached CHF17.15bn, declining 15.1 per cent from  CHF20.2bn recorded in the 9M19.

Markets in the company's Europe region recovered and posted a strong recurring EBIT of CHF317m in the third quarter. Net sales were back on last year’s level, with stronger cement demand in western and central Europe offset by softer volumes in eastern Europe. 

North America delivered a recurring EBIT of CHF504m (-8.8 per cent YoY) while net sales to external customers reached CHF1.79bn (-15.1 per cent YoY). Volumes in all business segments were impacted by COVID-19 and an unfavourable comparison base due to deferred sales. In particular, cement sales fell 11.3 per cent to 6Mt from 6.8Mt in the third quarter of 2019.

The Latin America region delivered an outstanding performance with strong cement demand recovery in Mexico and Brazil and excellent cost savings initiatives across the region in the third quarter. Overall, cement volumes climbed six per cent YoY to 7Mt from 6.6Mt.

The recurring EBIT growth of the Asia Pacific region in the third quarter was driven by resilient volumes and strong operational efficiency in India. Volumes in China were above last year's level, partially offset by softer markets in the Philippines and Australia.

The successful turnaround drove a strong performance in the quarter for the Middle East Africa region. The result was supported by resilient demand, strong volume growth in Nigeria, strict cost discipline and successful turnaround initiatives. 

Jan Jenisch, CEO: "Our third quarter results demonstrate the resilience of our business and the strength of our decentralised, empowered operating model. I am very proud of our team’s agility in executing our action plan ‘health, cost & cash’ ahead of targets. Our third quarter performance demonstrates a strong resilience in demand for our products and an over-proportional increase in margins.

"I expect a solid closing of 2020 resulting in a free cash flow of above CHF2.75bn and a strong balance sheet that will allow us to pursue growth opportunities. We accelerated our ambition to lead the way in green construction with our net zero pledge and partnership with the Science-Based Targets initiative. I am very proud of the global launch of our green concrete, ECOPact, earlier this year, as well as our EcoLabel, to transparently share the environmental benefits of our products."

Published under Cement News