The group of French-swiss building materials LafargeHolcim has overtaken almost its profit in the second quarter of 2017 as the merger takes shape. However, a decrease in its sales, has been observed in particular in the Asia Pacific region. Details.
When publishing its results for the second quarter of 2017, LafargeHolcim, a group of franco-swiss building materials, has pointed out, the July 26, 2017, that it maintains its objectives for this year. For the period from April to the end of June, the cement companies achieved a net profit of 709 million euros, compared to 348 million euros a year earlier, under the effect of synergy, a decrease in financial expenses, but also a capital gain on the sale of business activities in Vietnam.”
During the quarter, the cement has generated 105.4 million euros of additional synergies, and has thus almost reached the target of one billion euros it had set for itself for 2017. Excluding non-recurring items, the increase amounted to 22%, said the group, which had to make significant disposals to get the green light to the merger.
Sales have fallen by 13.1% in Asia-Pacific in the second quarter of 2017
However, LafargeHolcim points out that in the second quarter of 2017, its sales decreased from 5.9% to 6.1 billion euros. Another point noticed : in the Asia-Pacific, sales were down 13.1%, driven in particular by strong competition in Malaysia and the Philippines. Sales were also down 2.2% in Europe, 2.7% in North America and 19.6% in Africa and the Middle East. Note that they have increased by 12% in Latin America. The cement stresses in the same press release that “the measures implemented to cope with the falling demand in Brazil are beginning to bear their first fruits.”
Towards a new director general in September ?
During the publication of these results, LafargeHolcim has also announced that its new chief executive officer Jan Jenisch to take office earlier than planned. Recall that the giant construction materials LafargeHolcim had chosen the end of may 2017 Jan Jenisch, the current director-general of the group of specialty chemicals Sika.
His appointment had been, in effect, announced after the resignation of franco-american Eric Olsen, who had decided to relinquish his post to try to defuse the tensions around the folder on Syria.