authored by John Revill
As the largest cement producer in the world raised its full-year guidance after surpassing forecasts for the first quarter, ZURICH ( Reuters )- Holcim AG dismissed worries about rising interest rates dampening building industry demand.
According to data from earlier this month, U.S. construction spending decreased in February as the housing market in the nation took the brunt of the Federal Reserve's's aggressive interest rate hikes in its fight against high inflation.
As higher interest rates weigh on construction work, other nations like Britain have already experienced declines so far this year.
However, Holcim( SIXHOLN ) was unfazed and improved its outlook following what it referred to as a strong start to the year.
The Swiss company now anticipates a growth in full-year sales of more than 6 %, up from its previous projection of an increase of 3 % to 5 %. It also stated that its organic recurring operating profit is anticipated to rise by over 10 %.
We are confident that we will close the full year good because of strong core trends across all of our businesses, according to Chief Executive Jan Jenisch.
Holcim's's sales decreased from 6.44 billion Swiss francs($ 6.41 billion ) to 5.73 billion during its first quarter, surpassing analysts' consensus estimates of 5.66 billion.
The$ 6.4 billion purchases of Holcim's's India market, which was formerly its second largest by business and was finished last September, was largely responsible for the downswing.
Recurring operating income decreased to 493 million euros but still exceeded the prognosis of 464 million.
Sales increased by 8 % on a like-for-like basis, which eliminates the effects of divestments and currency swings. Profit from recurring operations rose by 12 %.
As it diversifies from the production of carbon-intensive concrete, Holcim has made 12 mergers since the beginning of 2023, in sectors like floors, roofing, and pre-cast material products.
Because they generate lower carbon emissions while equally meeting growing and tenacious demand from maintenance and restoration customers, the company has been looking to increase its presence in these areas.
Swiss franc worth$ 1.8933
In order to provide support, Holcim dismisses concerns about interest rates.
