Increased net income and cash flow from operating activities
• Higher operating EBITDA in Europe and Latin America
• First quarter results in India were impacted by negative market environment
• The Holcim Leadership Journey and the sale of a stake in Australia strengthened financial results
• Reduction of net financial debt over the past twelve months, higher ROIC before tax
Holcim succeeded in increasing net income and cash flow from operating activities, further reducing net financial debt compared with the end of March 2012 and achieving a better ROIC before tax. This was achieved despite the weaker construction activities in India, Morocco and France, the harsh winter in the northern hemisphere and the early Easter period which reduced the number of working days.
Market and weather-induced decreases in sales volumes in all segments and higher variable costs impacted operating results. Price improvements, cost savings, primarily in fixed costs in Europe and Latin America, and the sale of a stake of 25 percent in Cement Australia compensated for this, and as a result Holcim was able to report an increase in net income in the first quarter. This success was substantially supported by the Holcim Leadership Journey.
Group regions Europe and Latin America achieved an improvement of operating EBITDA – in absolute terms and also like-for-like. In Asia, where the growth trend is unbroken in most countries, the considerably weaker results of both Indian Group companies impacted the operating result of the whole region. The smaller Group region Africa Middle East primarily felt the negative effects of Morocco. Overall, like-for-like operating EBITDA decreased by 6.1 percent.
