Holcim reports drop in first half sales

Holcim recorded first half sales of CHF 12,4 billion (€ 7,68 billion), down -4,4% on the same period in 2007. Net income was also hit, dropping -53% on the comparable period 12 months ago to CHF 1,3 billion (€ 827 million), down from CHF 2,8 billion (€ 1,7 billion) in 2007.

Since the first half of 2007, the group sold Holcim South Africa and Egyptian cement. Results of € 7,68 billion net sales therefore represent a like-for-like growth of +8,2% for the group. While sales in the first half dropped in most sectors on last year’s figures, sales of ready-mix concrete leapt +11,3% from CHF 21,2 (€ 131 million) to CHF 23,6 (€ 146 million).

“Residential construction dropped sharply in Spain and the UK, but in eastern and south-eastern Europe, construction remained a key pillar of economic success. Dynamic construction activity was evident, primarily in Romania, Bulgaria, Russia and Azerbaijan,” commented a company spokesperson.

In Europe, on like-for-like business, sales rose in the cement and ready mix concrete sectors at +1,8% and + 8,4% respectively, while in the aggregates and asphalt sectors sales dropped by -4,5% and -3,3% respectively. Net sales across all European divisions and sectors rose +1,6% from CHF 5 billion (€ 3,1 billion) in the first half of 2007 to CHF 5,1 billion (€ 3,2 billion)in the first six months of 2008.

“In the second half of the year, the board of directors expect the sustained favourable construction activity in eastern Europe to be sufficient to compensate for the weaker conditions in individual markets in western and southern Europe,” confirmed a board spokesperson.