LafargeHolcim sees 3% to 5% sales growth in 2020 despite China slowdown
LafargeHolcim reported slightly better-than-expected net profit during 2019, the world's largest cement maker said on Thursday, saying it expected solid market conditions in most countries this year except China.
The building materials maker said net income rose by nearly 50% to 2.25-billion Swiss francs ($2.30-billion), sightly ahead of forecasts for 2.21-billion francs, according to Refinitiv data.
The profit increase was driven by lower restructuring costs, lower financial expenses and a reduced tax rate, LafargeHolcim said.
When impairment charges and gains from divestments were removed, the company's net profit increased 32% to 2.07-billion francs.
Sales fell 2.7% to 26.72-billion francs, just under analyst forecasts for 26.79-billion francs.
The company said it expects to increase its sales by 3% to 5% this year. It changed its profitability target to increase its recurring operating profit by at least 7% from a previous target for an improvement in Ebitda of at least 5%.
It expects sales growth in Europe and North America, but tough conditions in the Middle East and Africa.
The Swiss company also foresaw a "challenging environment" in China, although this view did not include the impact the coronavirus might have on the operating results in the country at the centre of the virus outbreak.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation