LafargeHolcim reported that net sales in the second quarter grew by 3.5% like-for-like compared to the prior-year period. This achievement has been driven by successful pricing management and higher cement volumes. Net sales grew in all regions supported by a favorable market environment in general, in particular in Europe and North America.
In North America, net sales were impacted by weather and flooding in the United States during the second quarter, according to the company. Net sales grew by 2.8% for the half-year and Recurring EBITDA improved slightly by 1.0% on a like-for-like basis. A strong order book and positive price momentum in the United States are expected to support improvement in the second half of the year.
Sales of aggregates in North America reached 45.7 million metric tons (Mt), up from 44.5 Mt a year earlier.
In the first six months, the company continued to reduce its CO2 emissions per ton of cementitious material by 1.4% compared to the prior-year period. The use of alternative fuel such as waste and biomass, to replace fossil fuel, grew by over 10% during the same period.
Since 1990, LafargeHolcim has reduced its carbon emissions per ton of cement by more than 25% – leading international cement companies with the highest reduction compared to the 1990 baseline. With a target of 520 kg net CO2/ton by 2030, LafargeHolcim remains the most ambitious company in the sector, committed to reducing emission levels in line with a 2-degree scenario, as agreed at the COP21 world climate conference in Paris.
Health & Safety improved with the Lost Time Injury Frequency Rate (LTIFR) continuing its downward trend.
Jan Jenisch, CEO, said, “We have achieved a strong first half of the year and successfully continued our profitable growth strategy. All business segments have contributed to this success and to the continued over-proportional growth in profitability. Our financial discipline resulted in strong progress in cash flow and a significant reduction in debt. We are executing our Strategy 2022 – ‘Building for Growth’ at full speed and we are confident that we will achieve our targets for 2019.”
The company’s outlook for 2019 is unchanged with solid global market demand expected to continue in 2019 with the following market trends:
- Continued market growth in North America.
- Softer but stabilizing cement demand in Latin America.
- Continued demand growth in Europe.
- Stabilizing market conditions in Middle East Africa.
- Continued demand growth in Asia Pacific.