Switzerland: In the first nine months of 2015, LafargeHolcim reported a fall in net sales, adjusted operating earnings before interest, taxes, depreciation and amortisation (EBITDA) and cement sales volumes.

LafargeHolcim's net sales fell by 0.6% year-on-year on to Euro20.4bn at constant exchange rates and its adjusted operating (EBITDA) fell by 3.2% on a like-for-like basis to Euro4.02bn in the first nine months of 2015. In the third quarter of 2015, Latin America and Asia Pacific (excluding China and India) continued to see positive trends, while the Middle East and Africa experienced more difficult conditions. Overall net sales in the quarter fell by1.1% on a like-for-life basis to Euro7.22bn. Adjusted operating EBITDA was down by 8.9% on a like-for-like basis to Euro1.51.

Sales volumes in all product lines declined slightly in the first nine months of 2015 due to lower than expected demand in a number of markets impacted by an economic downturn, notably in Brazil and China, as well as a lack of infrastructure projects in India. In the third quarter of 2015, volume trends stabilised and countries such as Argentina, Mexico, the Philippines and the UK continued to perform well. In the US, where the market recovery is well under way, LafargeHolcim is increasing capacity through revamping and reopening plants. On a pro forma basis, consolidated cement volumes fell by 1.3% to 189Mt in the first nine months of 2015 as increased shipments in North America and Latin America were offset by declines in Europe and in China. Solid increases were, however, reported in many markets, including in Egypt, Mexico, Philippines, Canada and the US. In the third quarter of 2015, cement sales volumes grew by 0.2% year-on-year to 65.3Mt.

"In this quarter we kick-started the integration process to have the right organisational structure, action plans and people in place to ensure the success of the merger," said Eric Olsen, CEO of LafargeHolcim. "On 1 December 2015 we will present the new company's first three-year plan, including a clear roadmap on how we plan to achieve our new targets, one of which is a cumulative 2016 - 2018 free cash flow generation of at least Euro9.23bn. This plan will come into effect on 1 January 2016 and will become the benchmark against which we will measure LafargeHolcim's performance, including management incentive plans."

"The first nine months of 2015 and in particular the third quarter were impacted by the difficult economic context in some of our large markets and considerable negative foreign exchange fluctuations. In addition, the closing of the merger triggered both one-off costs and organisational changes, the benefits of which will start coming through in 2016. At the same time, we have also seen solid market trends that, combined with our commercial efforts, led to good performance in several countries such as Argentina, Mexico, the Philippines, the UK and the US. We have started laying solid foundations for the new company on which we will build the future success of LafargeHolcim. I am confident in our ability to deliver on the announced synergies and thanks to disciplined capital allocation and superior execution we will outperform our sector. We will maximise cash flow and create sustainable value with the focus on returning excess cash to shareholders while continuing to provide our customers with world-leading innovative products and solutions."

LafargeHolcim expects that the contrasted evolution of the global economy will continue. A number of markets including China, Brazil, France, India and Switzerland will remain challenging, others such as Argentina, Mexico, the Philippines, the UK and the US will likely see continuing positive trends. The group has estimated that cement volumes will be higher for 2015 in all regions except Europe.

According to Dow Jones, LafargeHolcim plans to raise Euro3.23bn in 2016 from selling off cement assets around the world. The company has started discussions with interested parties, including private-equity firms and industry rivals about some of the assets, with the proceeds set to be returned to shareholders through dividends or share buybacks, according to Olsen. "We have a position of number one, two or three in 70% of our markets," said Olsen. "Where we don't have that position, we are looking at divesting or swapping assets."