Holcim reported its results for the fourth quarter 2014. Cement volumes decreased slightly by 0.6 percent to 34.4 million tonnes.
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Deliveries of aggregates were also down slightly by 0.7 percent to 39.4 million tonnes. Ready-mix concrete volumes contracted by 8 percent to 9.2 million cubic meters.
Fourth quarter consolidated net sales increased year-on-year by 1.9 percent to CHF 4,867 million. Operating EBITDA reached CHF 1,006 million, up 6.5 percent year-on-year. Adjusted for merger and restructuring costs booked in the quarter of CHF 56 million, like-for-like operating EBITDA growth reached CHF 111 million or 11.8 percent.
Operating profit increased by 6.9 percent to CHF 598 million. Excluding merger and restructuring costs of CHF 58 million, operating profit growth reached CHF 108 million or 19.2 percent on a like-for-like basis. Net income was up markedly by 43.5 percent to CHF 458 million.
In the financial year 2014, Holcim increased net sales by 3 percent on a like-for-like basis. Growth mostly resulted from price improvements in many regions, particularly in North America, against the backdrop of a favorable market environment and in Latin America in response to cost inflation.
An unfavorable currency effect of 5.2 percent and negative changes in consolidation structure impacted the consolidated net sales performance in 2014 which was down 3.1 percent to CHF 19,110 million.
Like-for-like operating EBITDA adjusted for merger and restructuring costs of CHF 138 million increased by CHF 215 million or 5.5 percent in 2014. Consolidated operating EBITDA however was down 3.8 percent to CHF 3,747 million mainly as a result of negative currency effects and merger and restructuring related costs.
In 2014, operating profit adjusted for merger and restructuring costs of CHF 149 million went up by CHF 249 million or 10.6 percent on a like-for-like basis. Consolidated operating profit however was down 1.7 percent in 2014, at CHF 2,317 million. The currency-related effect impacted operating profit by CHF 147 million or 6.2 percent.
In the year under review, the Group’s operating profit margin increased by 0.2 percentage points to 12.1 percent. Adjusted for merger and restructuring costs booked in 2014, the operating profit margin progressed by 0.9 percentage points on a like-for-like basis. This margin improvement was mostly driven by higher prices underpinned by favorable volume development.
Net income increased 1.5 percent to CHF 1,619 million and net income attributable to shareholders of Holcim Ltd was up 1.2 percent to CHF 1,287 million.
Cash flow from operating activities was down CHF 288 million to CHF 2,498 million. Over the last twelve months the net financial debt of the Group was CHF 9,644 million, CHF 183 million up from CHF 9,461 million mainly due to an unfavorable currency impact of CHF 250 million. ■