Adverse Weather Hinders HeidelbergCement’s First Quarter Results

HeidelbergCement said its result from current operations before depreciation and amortization decreased by 34 percent to €252 million for the first quarter of 2018. The company noted that the long winter in North America and Europe impaired sales volumes and revenue as well as the result from current operations.

During the first quarter, HeidelbergCement’s cement and clinker sales volumes rose by 2 percent to 28.2 million metric tons (Mt). Declining sales volumes in Europe and North America were more than offset by significant growth in Asia-Pacific and Africa-Eastern Mediterranean Basin. In Asia, particularly Indonesia and India, contributed strongly to this growth.

Deliveries of aggregates fell by 2 percent to 59.5 Mt (previous year: 60.9). Strong growth in Asia-Pacific did not fully compensate for the weather-related decline in sales volumes in Europe and North America. Deliveries of ready-mixed concrete also decreased by 2 percent to 10.2 million cubic meters (previous year: 10.4) because of the adverse weather conditions. 

Net loss for the period was €23 million compared with a loss of €70 million a year earlier. Revenue fell by 4 percent to €3.6 billion; adjusted for currency and consolidation effects, revenue increased by 2 percent. 

“HeidelbergCement generated a profit in the seasonally weak first quarter and despite difficult weather conditions,” said Dr. Bernd Scheifele, chairman of the managing board. “Our successful management of the portfolio and financial result more than compensated for the weather-related decline in operating result. With the positive underlying market dynamics, we’re confident that we can significantly increase our operational performance in the coming quarters and we remain committed to our goals for the financial year.”

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