Holcim hikes sales outlook on strong construction industry demand

The brand new brand of Swiss cement maker Holcim is seen in a block of concrete throughout the Holcim Capital Markets Day occasion in Basel, Switzerland, November 18, 2021. REUTERS/Arnd Wiegmann

ZURICH, July 27 (Reuters) – Holcim (HOLN.S) disregarded greater power costs and rising rates of interest to hike its full-year gross sales steerage on Wednesday after the world’s largest cement maker beat second-quarter forecasts.

The Swiss firm raised its full-year gross sales forecast to 10% from 8% on a like-for-like foundation, which excludes the influence of currencies and portfolio adjustments.

Holcim shares have been 2.8% greater in premarket indications on the Swiss change.

“We had even higher progress within the second quarter than within the first, and in case you look the place the expansion comes from, it is our Holcim enterprise of cement, aggregates and concrete,” Chief Govt Jan Jenisch instructed reporters.

“The opposite half of the expansion comes from our newly acquired corporations, particularly in roofing techniques. We do not see a slowdown in our markets, particularly the U.S. the place we have now file numbers and double-digit gross sales progress organically.”

The CEO, who has led Holcim since 2017, mentioned rising international rates of interest additionally posed little risk to resurgent building business demand.

“It’s a modest rate of interest, it’s stepping up, however it’s been at traditionally low ranges. So it isn’t regarding for us in the meanwhile,” he mentioned.

Holcim has raised costs and has absolutely compensated for greater power prices, Jenisch added. The corporate is a giant consumer of gasoline for its vehicles and crops.

Its raised gross sales outlook was not simply all the way down to greater costs, but in addition to anticipated greater gross sales volumes within the second half.

Holcim’s second-quarter internet gross sales rose 14% to eight.24 billion Swiss francs ($250 million), beating forecasts for 7.94 billion francs in a company-provided consensus of analyst estimates.

Recurring working revenue rose 7.2% to 1.56 billion francs, beating forecasts of 1.42 billion.

Holcim’s half-year internet revenue rose 38% to 1.16 billion francs. It doesn’t report internet revenue on a quarterly foundation.

($1 = 0.9617 Swiss francs)

Reporting by John Revill; modifying by Muralikumar Anantharaman and Jason Neely

: .