Germany: HeidelbergCement has suffered from poor sales in Asian and African markets as it continues to integrate assets from Italcementi into the group. Its pro forma sales revenue remained stagnant on a like-for-like basis at Euro3.78bn in the first quarter of 2017. Its cement sales volumes also remained static on a like-for-like basis at 27.8Mt. Although the group described its fortunes as ‘mixed’ in its emerging markets it reported sales declines in Thailand, Bangladesh and Egypt.

“We were able to almost offset the effect of higher energy costs, bad weather conditions and increased competition in some emerging countries in the most seasonally weak quarter of the year,” said Bernd Scheifele, chairman of the managing board. He added that the overall outlook for the global economy is positive despite ‘major’ macroeconomic and geopolitical risks. The group derives about 60% of its revenue from the US, Canada, the UK, Germany, countries in Northern Europe and Australia. As such it relies on the ‘good and stable economic development’ of these territories.

Overall the group’s cement sales volumes grew by 58% to 27.8Mt from 17.6Mt due to the acquisition of Italcementi in mid-2016. Its sales revenue from its cement business grew by 49% to Euro1.9bn from Euro1.3bn.

By region, sales in Europe and North America rose in the reporting period despite a strong comparison quarter in 2016 and poor weather. Falling prices in Indonesia and Ghana were described as the main cause for falling revenue in Asia and Africa. Results in Western and Southern Europe were also damaged by higher maintenance costs year-on-year.