Reuters: Holcim (SIX: HOLN) raised its full-year sales forecast on Wednesday after exceeding expectations in the second quarter.
The Swiss company upped its full-year sales target to 10% from 8% on a like-for-like basis.
Premarket indications for Holcim rose 2.8% in Switzerland.
“We experienced even better growth in the second quarter than in the first,” CEO Jan Jenisch said. “If you examine where the increase comes from, it’s our Holcim business of cement, aggregates, and concrete.”
“Newly acquired enterprises, especially in roofing, account for half of our growth. In our markets, especially the U.S., we have record numbers and double-digit organic sales growth. “
The CEO of Holcim said rising global interest rates don’t threaten building industry demand.
“It’s a tiny increase in a historically low interest rate. So we’re not worried, “saying
Jenisch said Holcim boosted pricing to cover higher energy costs. Company trucks and plants require a lot of gasoline.
Its improved sales expectations were due to higher prices and second-half sales volumes.
Holcim’s second-quarter sales grew 14% to 8.24 billion Swiss francs ($250 million), exceeding analyst predictions of 7.94 billion francs.
Operating profit grew 7.2% to 1.56 billion francs, exceeding expectations of 1.42 billion.
Holcim’s half-year net profit was 1.16 billion francs. Not quarterly net profit.
$1 = 0.9617 Swiss francs
