Heidelberg optimistic on Europe

HeidelbergCement reported growth in revenues and operating income for the second quarter and issued an upbeat forecast for the rest of the year, including expected positive developments in Germany, Northern Europe and the UK.

The cement producer’s revenues for the three months to the end of June stood at €3.79 billion, compared to €3.78 billion last year. Operating income increased to €524 million from €493 million in the second quarter of 2012.

The company said cement and aggregates price increases had a positive impact on revenue growth in key markets.

However, for the six months to the end of June, revenues dropped marginally to €6.56 billion from €6.58 billion for the first half of last year, but operating income reached €540 million, up from €505 million.

The company said that while construction activity in Europe and parts of North America during the second quarter was hindered by heavy rain and flooding in some areas, elsewhere cement deliveries benefited from a sustained increase in demand in Asian and African markets. It also reported a continued economic recovery in North America, especially in the southern states.

For the full year, HeidelbergCement said it expected the recovery in North America to continue, leading to increasing demand for building materials, especially from residential construction and the raw materials industry.

Meanwhile, markets in Germany, Northern Europe, and the UK should continue to develop positively, according the company, while markets in central Asia should remain stable.

In Benelux and Eastern Europe, the company said continuing weak demand for building materials was expected.