HEIDELBERG CEMENT, the world’s third-largest maker of cement, plans to improve profitability with two cost-cutting initiatives after higher demand in the US and Indonesia boosted second quarter earnings and sales.
Heidelberg Cement aims to widen cement margins in Europe and North America by improving pricing and training its sales force, the German-based company said. Operating income rose 7 per cent to €698 million in the quarter, beating a €679 million estimate by analysts in a Bloomberg survey.
Chief executive officer Bernd Scheifele is sticking to a goal for higher revenue and operating profit this year as rising demand in North America and Asia counters a “slight” drop in Europe. The results echo those of competitor Lafarge, which last week reported better than expected earnings amid cost cuts and demand outside of Europe.
“The fact that they are following up with two new efficiency programmes shows they are on the right course,” said Marc Gabriel, an analyst at Bankhaus Lampe, who has a “hold” rating on the stock. “The development in the US and in Asia was good.” – (Bloomberg)
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