Holcim Reports Strong Q3 Profit

By John Revill

ZURICH (Reuters) – Holcim exceeded third-quarter operating profit expectations, as profitability offset lower sales. The construction materials maker announced a recurring operating profit of 1.67 billion Swiss francs ($1.93 billion) for Q3, slightly above analyst forecasts.

The profit increase was attributed to a rise in profit margins to 23.5% from 21.8% last year, driven by higher sales of low carbon cement and other profitable products, despite a 3% drop in revenues to 7.12 billion francs.

CEO Miljan Gutovic stated, "Our Q3 results confirm Holcim's strong earnings profile with record recurring EBIT and margin."

The company has acquired six more businesses this quarter, bringing the total for 2023 to 17. Holcim maintained its full-year guidance for low single-digit sales growth in local currencies and higher recurring operating profit.

In premarket Zurich stock exchange trading, shares were down 0.1%. Analyst Mark Diethelm noted that despite lower sales volumes in North America and Europe, recurring EBIT growth remained robust.

Holcim plans to list its North American business in the first half of 2025, citing strong market fundamentals in the region with 150 active infrastructure projects.

($1 = 0.8656 Swiss francs)