Holcim Tops Forecast For Recurring Operating Profit In Q4 2021

Holcim beat analyst forecasts for recurring operating profit for the fourth quarter of 2021, and the world's biggest cement maker said on Friday it expected growth momentum to continue in all regions this year, John Revill reported for Reuters.

Photo Insert: Holcim Cement Headquarters for Central America in Antiguo Cuscatlan, El Salvador

Holcim posted a 5.6% increase in recurring earnings before interest and tax (EBIT) to 1.09 billion Swiss francs ($1.18 billion) during the fourth quarter, better than the 1.06 billion francs forecast by analysts.

Sales for the three months ended Dec. 31 rose 16.7% to 6.99 billion francs, better than the 6.73 billion francs expected. For 2022, Holcim said it expects to increase its sales by 6% on a like-for-like basis, which cuts out the impact of currency swings and acquisitions.

It also said it expected growth in recurring operating EBIT, and to generate free cash flow of more than 3 billion francs after posting a figure of 3.26 billion for 2021.

For 2021 it proposed a dividend of 2.20 francs, up from 2.00 francs for 2020. Holcim, which also supplies concrete, aggregates, and pre-cast concrete structures, is seen as a signifier for the broader construction market.

For 2021 as a whole, the company posted a record increase in net sales of 11.3% while recurring profit also reached a new high of 4.6 billion francs.

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