LafargeHolcim reported that net sales rose 3.6 percent like-for-like in the second quarter of the year.
Beat Hess, chairman and interim CEO said, “LafargeHolcim delivered positive earnings growth for the fifth consecutive quarter supported by favorable pricing, cost discipline and synergies. The unique strengths of our balanced portfolio are once again evident in our results with key countries such as the United States, India, Nigeria and, notably this quarter, Mexico making significant contributions to earnings, more than offsetting headwinds in some of our markets. On that basis, and with our performance to date, we remain confident that we will achieve our full year guidance and our 2018 targets.”
North America made a strong contribution to operating EBITDA adjusted growth – up 16.5 percent on a like-for-like basis – despite the effect of heavy rain on volumes of cement and aggregates in parts of the United States and Canada. In both markets, cost savings in logistics and manufacturing contributed to positive results, while the U.S. continued to benefit from favorable pricing.
Cement volumes in the U.S. for the second quarter were down on the prior year. Aggregates volumes in the U.S. were also impacted by unfavorable weather conditions which constrained deliveries for a period during the quarter. Operational enhancements undertaken in the second quarter should further benefit earnings going forward, according to the company.
Despite lower volumes, performance in Canada remained stable in the second quarter thanks to cost efficiency measures, notably in the west of the country. Western Canada saw a modest recovery while volumes in Eastern Canada were negatively impacted by weather and operational challenges.