LafargeHolcim reported 2020 net sales of CHF$23,142 million, a 5.6% decrease on a like-for-like basis compared to the prior year and a decrease of 13.4% on a reported basis.
The company’s North America segment showed strong improvement in its Recurring EBIT margin, the company stated. Volumes recovered across all business segments in the fourth quarter in the region, supported by “excellent execution of its Health, Cost and Cash action plan and effective price management.” This strong performance was partially offset by a slowdown in Canada West, which was affected by decline in the oil and gas industry.
Sales of aggregates in North America in 2020 totaled 108.0 million metric tons (Mt), down from 113.5 Mt in 2019, a 4.9% decline.
Jan Jenisch, LafargeHolcim CEO, said, “2020 was an unprecedented year for everyone, challenging us to be more resilient, while stepping up to take care of those around us. I sincerely thank everyone within LafargeHolcim for their strong contributions, enabling us to navigate these difficult times. I’m extremely proud of how our teams mobilized to keep our people and operations safe, while going above and beyond to stand by our communities. Together we touched the lives of over six million people around the world this year.
“This crisis has really proven the resilience of our strategy and business model. By the fourth quarter we were back to growth, with a 1.5% increase in net sales and over-proportional Recurring EBIT of 14.1%. We are emerging stronger from the crisis, reaching a new level of financial performance this year. We delivered a record free cash flow of CHF 3.2 billion and reduced our net debt by CHF 1.6 billion. Staying focused on our growth agenda, we completed eight bolt-ons in 2020 and signed an agreement to acquire Firestone Building Products, the iconic leader in flat-roofing systems in the United States.
“We accelerated our climate action, from our net zero pledge to the global launch of our ECOPact green concrete, all the way to making it into CDP’s A list for climate. Every ton of cement we produced in 2020 was more carbon-efficient and contained more recycled material than the year before.
“We are going into 2021 with strong momentum. We expect further demand in H2 2021 from a broad range of stimulus programs. We are firmly on track to become the global leader in innovative and sustainable building materials and solutions,” Jenisch concluded.
LafargeHolcim expects good demand momentum in 2021, with positive trends in all regions. Extra demand is expected in 2021 from stimulus programs, as governments announce measures to support the economic recovery with a focus on infrastructure.