Holcim Reports Strong Q3 Earnings

Holcim (SIX:HOLN), a leading building materials supplier, has reported a third-quarter recurring operating profit of 1.67 billion Swiss francs ($1.93 billion), exceeding analyst expectations. The company plans to spin off its North American business next year and achieved a profit margin of 23.5%, up from 21.8% the previous year, attributed to the sale of high-margin low carbon cement and other building products.

Despite a 3% decline in revenues to 7.12 billion francs, below the projected 7.19 billion francs, Holcim maintained profitability through strategic acquisitions, adding six companies in the quarter, making a total of 17 acquisitions this year.

Chief Executive Miljan Gutovic emphasized the strong earnings profile and record margins, highlighting the company's resilience amid market challenges. Holcim reaffirmed its full-year guidance, expecting low single-digit sales growth in local currencies and higher recurring operating profit growth.

The company’s shares saw a slight dip of 0.1% in premarket trading on the Zurich stock exchange. Analysts, including Bank Vontobel's Mark Diethelm, noted the robust recurring EBIT despite lower sales in North America and Europe.

Looking ahead, Holcim plans its U.S. listing of the North American business in the first half of 2025. The North American market, Holcim's second-largest after Europe, is involved in 150 infrastructure projects, indicating strong market fundamentals.

The company's financial performance reflects a focus on profitable products and growth through acquisitions, positioning it for continued success amid global market fluctuations.

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