HeidelbergCement AG (HDELY.PK, HEI.DE) reported Tuesday a higher profit for its second-quarter, benefited by growth in sales volumes in North America and Asia as well as successful price increases. Looking ahead, the company confirmed its fiscal 2012 targets, and continues to expect increase in revenue and operating income.
The German producer of cement, concrete and other building materials reported that second-quarter group share of profit increased 15.6 percent to 184 million euros from last year's 159 million euros.
Profit before tax, meanwhile, declined to 318 million euros from 319 million euros a year ago.
Revenue for the quarter grew 11 percent to 3.78 billion euros from prior year's 3.39 billion euros. Excluding exchange rate and consolidation effects, revenue grew 6.4 percent with increase in all areas apart from Western and Northern Europe. The company said it experienced strong operative development compared to previous year.
Bernd Scheifele, Chairman of the Managing Board, said, "The price increases that we have implemented to offset the rise in energy costs were mostly successful. This enabled us to increase our cement margins in the second quarter of 2012 compared to the previous year. We will do everything in our power to continue this positive trend in the second half of 2012."
The company noted that it sees stronger than expected growth in demand in North America. In contrast, construction activity in some European countries has weakened.
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by RTT Staff Writer
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