First publishedon www.AggBusiness.com
Building materials provider LafargeHolcim
posted net sales of CHF20,200m (€18,288m) in the third quarter of 2019, a decrease of 2.1% on Q3 2018 but up by 4% in terms of like-for-like net sales.
The French-Swiss group said that net sales growth was achieved in all regions and in all four business segments (cement, aggregates, ready-mix concrete and solutions & products) in Q3, supported by solid global market demand, especially in mature markets. With 7 bolt-on acquisitions in 2019, the latest one in October in the UK, the company says it continues growing as outlined in its Strategy 2022.
LafargeHolcim said the positive momentum of the first nine months of 2019 is expected to continue into Q4 with continued market growth in North America, softer but stabilising cement demand in Latin America, continued demand growth across most countries in Europe, and continued demand growth in Asia Pacific. It added that there are challenging market conditions in Middle East Africa.
Based on these trends and the successful execution of Strategy 2022, the company confirmed its previously communicated targets for 2019, including net sales growth of 3 to 5% on a like-for-like basis.
CEO Jan Jenisch commented: “Q3 is the fifth consecutive quarter of over-proportional growth in profitability and we are on track to achieve all targets for 2019.
"Our financial discipline is generating value and we are making significant progress in cash conversion and in deleveraging our balance sheet. We expect the positive dynamics to continue into the fourth quarter and we are confident that we will deliver a strong full-year performance and achieve a new level of balance sheet strength."