LafargeHolcim announced third-quarter results, with both aggregates and cement sales in North America decreasing. Aggregates sales totaled 36.7 million tons, down from 38.8 million tons in 2015. Cement sales totaled 6.0 million tons, down from 7.0 million tons in 2015.
Year-to-date cement sales totaled 14.7 million tons, down from 16.0 million tons in 2015. Year-to-date aggregates sales totaled 82.7 million tons, down from 84.6 million tons in 2015.
Overall, in the third quarter the North America region delivered a 450 basis point improvement in margins (Adjusted Operating EBITDA margin) through successful implementation of pricing strategy, synergies and cost reduction measures, the company said. Adjusted Operating EBITDA on a like-for-like basis for Q3 was up 9.2 percent despite softened demand.
The United States reported a strong performance despite lower cement volumes impacted by delays to infrastructure projects and the effect of unfavorable weather conditions for construction. Ongoing cost measures had a positive effect on margins and Adjusted Operating EBITDA.
In addition to the beneficial impact of lower energy prices, which persisted into the quarter, the U.S. succeeded in accelerating the capture of synergies and cost savings in areas such as distribution and plant networks.
Adjusted Operating EBITDA on a like-for-like basis was down for both Eastern and Western Canada in the quarter. Western Canada continued to be negatively affected by lower investment activity as a result of the ongoing oil price-driven economic downturn in Alberta and Saskatchewan.
Eric Olsen, CEO of LafargeHolcim, said: “With these results, we are demonstrating that our focus on pricing, synergies and cash flow is delivering results. Our earnings momentum is accelerating and we are on track to achieve our commitments for 2016, resulting in a year of solid progress toward our 2018 objectives.”