LafargeHolcim announced that revenue grew 6.2 percent in the second quarter of 2018. For the first six months, net sales grew 4.8 percent on a like-for-like basis. Over the first six months, Recurring EBITDA was down -1.4 percent on a like-for-like basis but earnings increased in the second quarter, with Recurring EBITDA up by 1.5 percent, largely offsetting a soft first quarter.
These strong overall trends are reflected in earnings and revenue growth for the first six months of 2018 in all regions apart from Middle East Africa, where conditions remained difficult. Given these trends, as well as the solid execution of simplification and performance measures, the company said that full-year targets for 2018 have been confirmed.
“I am very satisfied with the sales growth we achieved in the first half of the year, especially as we gained momentum in the second quarter. Increasing energy prices and cost inflation have been challenging. Operational issues in some markets have been addressed and we expect to deliver increasing margins as we capture the upward trend in demand through the second half of 2018,” said Jan Jenisch, chief executive officer of LafargeHolcim. “We remain focused on delivering Strategy 2022 – ‘Building for Growth.’ Recent bolt-on acquisitions in the U.S. and France demonstrate our focus on capturing the growth opportunities in our most attractive markets. The beneficial effects of simplification and cost reduction are also becoming more visible. We continue to focus on delivering our 2018 targets.”
Earnings improved with volumes in the U.S. accelerating throughout the first half of 2018 supported by positive market conditions as well as successful commercial initiatives. The contribution from Canada was solid despite persistent difficult conditions in the Prairies. Earnings for the region overall were constrained by higher logistics costs and maintenance activities to cope with demand growth.
In Latin America, strong growth in top line and earnings have been achieved, supported by solid performance in Mexico, according to the company. Performance in Argentina was also good despite higher costs to fulfill demand and currency volatility. Performance in Brazil was impacted by the national transport strike in May.