LafargeHolcim Reports Lower North American Aggregates Production

LafargeHolcim reported that its North America region produced 35.6 million metric tons (Mt) of aggregates in the third quarter, compared to 39.0 Mt for the previous year’s third quarter. The company stated that overall its North American region delivered an improved Recurring EBIT margin. 

Volumes in all business segments were impacted by COVID-19 and an unfavorable comparison base due to deferred sales. The strong Recurring EBIT margin was supported by an over-proportional cost decline compared to volumes as well as effective price management. The region was also impacted by the slowdown in the oil and gas industry in Western Canada.

The company stated that the quarter’s results confirmed the resilience of LafargeHolcim’s strategy, the agility of its decentralized business model, the rigorous execution of its action plan “Health, Cost & Cash” and the company’s strong financial position. In addition, the group saw an increase in revenues from its branded products, which are sold across its broad distribution and retail network. For example, the company recorded a volume increase of 5% in its cement bag sales.

Jan Jenisch, CEO, said, “As we navigate the pandemic, our number-one priority is to keep our people and communities safe. I would like to sincerely thank all our people who are going above and beyond to make this happen around the world. In particular, I would like to applaud our many front-line workers who have never stopped providing products and services to our customers during these challenging times.

“Our third-quarter results demonstrate the resilience of our business and the strength of our decentralized, empowered operating model. I am very proud of our team’s agility in executing our action plan ‘Health, Cost & Cash’ ahead of targets. Our third-quarter performance demonstrates a strong resilience in demand for our products and an over-proportional increase in margins.

“I expect a solid closing of 2020 resulting in a Free Cash Flow of above CHF$2.75 billion and a strong balance sheet that will allow us to pursue growth opportunities. We accelerated our ambition to lead the way in green construction with our net zero pledge and partnership with the Science-Based Targets initiative. I am very proud of the global launch of our green concrete, ECOPact, earlier this year, as well as our EcoLabel, to transparently share the environmental benefits of our products,” Jenisch concluded.

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