Switzerland: Holcim has reported increased cement sales volumes, increased net sales and increased operating profits for the first nine months of 2014, although growth was weaker than expected due to the uneven global economic recovery.

Group-wide cement volumes increased by 1.6% year-on-year to 106Mt over the first nine months of 2014, mainly driven by positive volume developments in the US, India and the Philippines, which offset lower volumes in Azerbaijan, Italy and Argentina.

Consolidated net sales were up by 3.4% year-on-year as a result of higher volumes and better pricing in many markets. Consolidated net sales decreased by 4.7% to Euro11.8bn. Negative currency effects, mainly in Asia Pacific and Latin America, were the main contributor, weighing on consolidated net sales by Euro871m. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 0.7% year-on-year. Consolidated operating EBITDA was down by 7.1% to Euro2.27bn, mainly due to currency effects. Adjusted for restructuring and merger costs, operating EBITDA was Euro2.34bn. North America and Europe, the two group regions less affected by the significant currency effects, recorded growth in operating EBITDA.

Operating profit reached Euro1.43bn, an increase of 2.8%. Like-for-like and adjusted for merger and restructuring costs, operating profit increased by 7.8% or Euro117m. Net income was down by 9% to Euro96.2m, partly because Holcim has not yet received the final compensation installment of Euro77.9m for the nationalisation of Holcim Venezuela, which was due on 10 September 2014. In addition, the group benefited from the one-time gain from the sale of 25% in Cement Australia in 2013.

For 2014 Holcim expects the global economies to show another year of uneven performance. Construction markets in Europe are expected to have reached the bottom, with slow recovery in sight. At the same time, North American markets are expected to continue to benefit from a further recovery especially in the US. However, Latin America could continue to face uncertainties in Argentina, but should overall show slight growth in 2014. The Asia Pacific region is expected to grow, although at a comparatively slower pace than experienced in recent years. Africa Middle East is expected to gradually improve. Holcim expects cement volumes to increase in all regions in 2014 with the exception of Europe.

"Holcim posted a solid like-for-like performance in the first nine months of 2014, building on the good traction earlier in the year and despite the ongoing challenging market environment," said Bernard Fontana, CEO. "The group increased like-for-like operating profit on the back of the solid financial performance in North America, Europe and Africa Middle East. However, weak emerging market currencies continued to negatively impact consolidated financial performance, in particular in Asia Pacific and Latin America."