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LafargeHolcim Q3 Recurring EBITDA Edges Up, Sales Down; Backs FY19 View

Cement giant LafargeHolcim (HCMLY.PK,HCMLF.PK) reported Friday that its third-quarter recurring EBITDA, a key earnings metric, on a pre-IFRS16 basis, edged up 0.8 percent to 1.881 billion Swiss francs from last year's 1.867 billion francs. On a like-for-like basis, recurring EBITDA grew 6.4 percent.

Recurring EBITDA post-IFRS16 was 1.985 billion francs for the quarter.

The company noted that recurring EBITDA increased in all business segments and in four out of five regions. North America and Europe increased Recurring EBITDA by 6.9 percent and 7.1 percent respectively, driven by volumes and positive price momentum.

Net sales for the quarter, meanwhile, dropped 3 percent to 7.142 billion francs from 7.36 billion francs last year. Like-for-like sales grew 4.9 percent.

Sales growth was achieved in all regions and in all four business segments, supported by solid global market demand, especially in mature markets.

Jan Jenisch, CEO, said, "Q3 is the fifth consecutive quarter of over-proportional growth in profitability and we are on track to achieve all targets for 2019."

The positive momentum of the first nine months is expected to continue into the fourth quarter.

Based on the positive trends and the successful execution of Strategy 2022, the company continues to expect fiscal 2019 net sales growth of 3 to 5 percent on a like-for-like basis and recurring EBITDA pre-IFRS 16 growth of at least 5 percent on a like-for-like basis.

Further, the company announced the appointment of the first Chief Sustainability Officer to the Executive Committee.

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