FILE PHOTO: The new logo of Swiss cement maker Holcim is seen in a block of concrete during the Holcim Capital Markets Day event in Basel, Switzerland November 18, 2021. REUTERS/Arnd Wiegmann
February 25, 2022
ZURICH (Reuters) -Holcim beat analyst forecasts for recurring operating profit for the fourth quarter of 2021, and the world’s biggest cement maker said on Friday it expected growth momentum to continue in all regions this year.
Holcim posted a 5.6% increase in recurring earnings before interest and tax (EBIT) to 1.09 billion Swiss francs ($1.18 billion) during the fourth quarter, better than the 1.06 billion francs forecast by analysts.
Sales for the three months ended Dec. 31 rose 16.7% to 6.99 billion francs, better than the 6.73 billion francs expected.
For 2022 Holcim said it expects to increase its sales by 6% on a like-for-like basis, which cuts out the impact of currency swings and acquisitions.
It also said it expected growth in recurring operating EBIT, and to generate free cash flow of more than 3 billion francs after posting a figure of 3.26 billion for 2021.
For 2021 it proposed a dividend of 2.20 francs, up from 2.00 francs for 2020.
Holcim, which also supplies concrete, aggregates, and pre-cast concrete structures, is seen as a signifier for the broader construction market.
For 2021 as a whole, the company posted a record increase in net sales of 11.3% while recurring profit also reached a new high of 4.6 billion francs.
Chief Executive Jan Jenisch said: “2021 was a record year for Holcim, reaching new levels of performance. What makes me most proud is how we navigated the COVID pandemic with such extraordinary resilience.”
German rival HeidelbergCement, the world’s second-largest cement maker, on Thursday said it expects both sales and core profit to rise in 2022 on the back of global infrastructure programmes and continuing demand for new homes.
($1 = 0.9230 Swiss francs)
(Reporting by John RevillEditing by Miranda Murray and Michael Shields)
