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| HeidelbergCement increases revenue and results in Q1 2014 The mild winter weather and the positive development of the economy in HeidelbergCement's markets have led to a significant increase in sales volumes in all business lines in Europe. In North America, the sales volumes of building materials were affected by the cold and snowy winter, but still remained at virtually the same level of the previous year. The markets in Asia and Africa continued to develop positively. Overall, the sales volumes for cement, aggregates, ready-mixed concrete, and asphalt all increased by a double-digit percentage. The Group's cement and clinker sales volumes rose by 10.0% to 17.5 million tonnes (previous year: 15.9). The Western and Northern Europe as well as Eastern Europe-Central Asia Group areas reported double-digit growth rates. Poland, in particular, experienced a significant increase in demand. Sales volumes in North America declined slightly due to the cold and wet weather in the northeast of the USA and in Canada. Asia and Africa, however, were able to build on the positive development in sales volumes of the previous years. Deliveries of aggregates across the Group amounted to 44.3 million tonnes (previous year: 39.8), an increase of 11.3%. Ready-mixed concrete deliveries rose by 11.2% to 7.7 million cubic metres (previous year: 6.9). Asphalt sales volumes grew by 28.2% to 1.5 million tonnes (previous year: 1.2). Relevant changes in accounting The financial figures of the first quarter 2014 were prepared for the first time in line with the new international accounting standards IFRS 10 und 11. According to the new standards, revenue and operating income of joint ventures – among others – are no longer proportionately included in the items of the consolidated income statement. This means that the results from important operations, e.g. in Turkey, China, Hungary, Bosnia and Herzegovina, and Texas, would be no longer included in the operating income of HeidelbergCement. As a consequence, the strength of HeidelbergCement's operating performance would no longer be reflected completely in the operating income. To improve the presentation, HeidelbergCement will therefore include the net result from joint ventures as part of the operating income before depreciation (OIBD), starting with the first quarter of 2014. Revenue and operating income increased despite negative currency effects Group revenue for the period of January to March 2014 rose by 5.7% to €2, 750 million (previous year: 2, 602). Excluding consolidation and exchange rate effects, the increase amounted to 14.8%. This primarily reflects the positive development of sales volumes in all business lines and the successfully implemented price increases in major markets. While positive effects from changes in the consolidation scope to the amount of €18 million were negligible, the weakening of numerous currencies against the euro amounting to €221 million had a considerable negative impact on the development of revenue. Operating income before depreciation (OIBD) rose significantly by 15.6% to €229 million (previous year: 198). Besides the pleasing development of sales volumes and revenue, the increase in the result from joint ventures – due to the positive development especially in Turkey and China – to €22 million (previous year: 7) contributed to this growth. Operating income increased by €41 million to €50 million (previous year: 9). The additional ordinary result rose by €43 million to €11 million (previous year: -32). The previous year's figure included a €32 million addition to provisions in connection with the decision by the German Federal Court of Justice in the German antitrust proceedings. The financial result deteriorated by €22 million to €-162 million (previous year: -140). The main reason for this is the non-recurring depreciation and amortisation of the transaction fee for the early refinanced syndicated credit facility. Profit before tax from continuing operations rose by €60 million to €-104 million (previous year: -164). Expenses relating to taxes on income decreased by €21 million to €2 million (previous year: 23). As a result, net income from continuing operations increased to €-106 million (previous year: -187). Overall, the loss for the period amounts to €-108 million (previous year: -187). The profit attributable to non-controlling interests fell by €9 million to €39 million (previous year: 48). The Group share therefore amounts to €-147 million (previous year: -235). At the end of March 2014, the number of employees at HeidelbergCement stood at 50,908 (previous year: 49, 960). The increase of 948 employees essentially results from two opposing developments: on the one hand, more than 300 jobs were cut in some Eastern European countries, in Benelux, and India in connection with efficiency increases in sales and administration as well as location optimisations. Furthermore, the number of employees was reduced by around 180 due to the sale of the cement grinding plant in Raigad, India. On the other hand, more than 700 new employees were hired in growth markets such as Indonesia and Central Asia. In the United Kingdom, Germany, North America, and Australia, the workforce grew by just under 450 employees as a result of the good development of demand. Moreover, our number of employees increased by around 230 due to the acquisition in April 2013 of the remaining 50% in the hitherto proportionately consolidated Midland Quarry Products, United Kingdom, and the increase in shares in January 2014 in Cimescaut Group, Belgium, which was previously accounted for at equity. write your comments about the article :: © 2014 Construction News :: home page |