Sunday , June 20 2021

High energy costs lower Heidelberg balance sheet – New savings program 11/8/18

HEIDELBERG (awp international) – In the third quarter, the HeidelbergCement group of building materials benefited from construction in Germany and the world's infrastructure programs. However, significantly higher energy costs and adverse weather conditions slowed down, particularly in the US. As a result, Heidelberger has already limited its annual operating profit target in mid-October (reported Ebitda). Now the company wants to counter the new savings program, as Dax announced on Thursday in Heidelberg. Saving costs of 100 million euros in sales and management. In addition, the portfolio should be optimized.

From July to September, sales rose by seven per cent to EUR 4.9 billion per year. So HeidelbergCement was better than the expected experts. Adapted to currency performance, revenue would even increase by ten percent. Correct earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 2 percent to EUR 1.04 billion. The higher cost of energy and heavy rain in the US were the main burden here. The bottom was a profit of 539 million euros. That's twelve percent more than a year earlier. Factors contributing include lower financing costs and lower taxes. / Mne / jha /

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