Germany: HeidelbergCement has announced improved operating results in the second quarter of 2013 despite claims that poor weather conditions in Europe and North America had hampered its performance. The group's revenue was stable at Euro3.8bn for the three months to 30 June 2013 and at Euro6.56bn for the first six months of 2013.
HeidelbergCement's net profit for the second quarter of 2013 was Euro469m, a 92% increase year-on-year from Euro245m in the second quarter of 2012. Over the first half of 2013, its profit rose by Euro285m from just Euro86m in the first half of 2012.
"HeidelbergCement has successfully continued the positive earnings development in the second quarter despite challenging conditions," said Dr Bernd Scheifele, chairman of the managing board. "The measures that we introduced to improve margins are showing results. We were able to implement price increases in our principal markets and our efficiency improvement programmes are progressing according to plan."
The group saw regional variation in its cement sales during the period under review. While construction activity in Europe and parts of North America was hindered due to heavy rain and flooding in some areas, HeidelbergCement's cement deliveries benefited from the sustained increase in demand in its Asian and African markets as well as from the continued economic recovery in other parts of North America, especially in the southern US.
During the second quarter, the group's cement and clinker sales volumes dropped slightly by 0.8% to 24.3Mt from 24.5Mt in 2012. The Asia-Pacific group area experienced the strongest growth in sales volumes, followed by North America and Africa-Mediterranean Basin. Cement sales volumes in the Western and Northern Europe group area remained broadly stable. Deliveries in the UK were more than 10% above the values of 2012 due to the emerging recovery in private residential construction. Sales volumes in Germany and in the bordering countries of eastern Europe were adversely affected by heavy rainfall and flooding.
The Eastern Europe-Central Asia group area recorded a decline in sales volumes of more than 10%. Poland, Romania and the Czech Republic were the most severely affected. In addition, the harsh austerity policies of these countries had a negative effect on public infrastructure construction. In the first half of 2013 cement and clinker sales volumes decreased slightly by 0.8% to 42.4Mt from 42.7Mt in 2012.
Looking ahead, in North America, HeidelbergCement still expects ongoing economic recovery and consequently a further increase in demand for building materials, especially from residential construction and the raw materials industry. A three-layered economic development is anticipated in Europe and central Asia. It says that the markets in Germany, northern Europe and the UK should continue to develop positively and expects those in central Asia to remain stable. In Benelux and eastern Europe a continuing weak development of the economy and demand for building materials is anticipated. In Asia and Africa, the group still expects sustained positive demand.