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Reuters
7 days ago
- Business
- Reuters
Heidelberg Materials expects infrastructure boom to fuel profit growth by 2030
FRANKFURT, May 28 (Reuters) - Heidelberg Materials, the world's second-biggest cement maker, said on Wednesday it expects operating profit growth in the medium-term to 2030 to be driven by five megatrends, including higher defence spending and a growing demand for data centres. The group's result from current operations (RCO) is expected to grow 7-10% on average a year until 2030, the German company said at its capital markets day held at its carbon capture and storage site in Brevik, Norway. Return on invested capital is forecast to rise to around 12% by 2030, from an expected 10% in 2025, the group said, adding its net capital expenditure target would be raised to an average 1.3 billion euros ($1.5 billion) a year, from 1.1 billion previously. Heidelberg Materials CEO Dominik von Achten said that apart from defence and data centre construction, profit growth was also expected to be driven by the global energy transition, infrastructure needs as well as forecast housing boom globally. "These are five decisive waves from which we as a company are benefiting across the board. The demand that is coming in is enormous," he told Reuters, adding the company would continue to focus on heavy building materials such as cement, aggregates, ready-mix concrete and asphalt. Shares in the German construction company have soared by more than half year-to-date, giving it a market value of around 33 billion euros, as investors bank on the group's ability to tap a planned 500-billion-euro investment push by the German government. Von Achten also said there would be a second round of capacity adjustments in Europe by 2030 following a current effort to close five clinker plants on the continent by the end of the year. "The aim is to make a significant leap in margins in Europe. We are removing capacity where production is particularly cost- and CO2-intensive, namely in clinker," von Achten said, adding the group could continue to grow in cement by adding mills to its plant network. ($1 = 0.8835 euros)
Reuters
25-02-2025
- Business
- Reuters
Heidelberg Materials forecasts profit rise as core markets stabilise
FRANKFURT, Feb 25 (Reuters) - Heidelberg Materials ( opens new tab, the world's second-largest cement maker, expects its operating profit to rise further this year after a record 2024, it said on Tuesday, citing a stabilisation in its core markets. The group's result from current operations is forecast to rise to 3.25 billion euros to 3.55 billion euros ($3.72 billion to $3.40 billion) in 2025, up from 3.2 billion in 2024, which was up 6% year on year. "Thanks to our broad geographic footprint as well as our focus on cost and price management, we managed to more than compensate for declining demand in certain regions," CEO Dominik von Achten said in a statement. The group said that while the construction sector remained volatile in some regions, the company's core markets - which includes North America and Australia among others - continued to stabilise. ($1 = 0.9547 euros) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
Yahoo
27-01-2025
- Business
- Yahoo
UltraTech in talks to buy HeidelbergCement India, Moneycontrol reports, following rival Adani
(Reuters) -UltraTech Cement, India's top cement producer by capacity, is in advanced talks with German firm Heidelberg to acquire its Indian unit, Moneycontrol reported on Monday, citing sources familiar with the matter. Executives from the Aditya Birla Group, UltraTech's parent, met Heidelberg management to discuss the acquisition of HeidelbergCement India, the report said, without specifying the value of the deal. The German parent's 69% stake in its local arm was valued at around 33.8 billion rupees ($391.08 million) as of Friday's close. The talks come months after newspaper Economic Times reported that UltraTech's rival Adani Group was in talks to buy the German parent's stake. It was not immediately clear if the talks with Adani fell through. Moneycontrol's report did not specify the status of Adani Group's talks. Besides the two majors, Heidelberg had also drawn interest from IPO-bound JSW Cement, multiple media outlets reported last year. UltraTech, Heidelberg, HeidelbergCement India and the Adani Group did not immediately respond to Reuters' requests for comment. UltraTech and the Adani Group - which entered the sector in 2022 by buying the cement assets of Swiss firm Holcim - are engaged in a turf war to expand capacities and shore up market share, with demand for cement expected to remain healthy, according to analysts. In July, Heidelberg CEO Dominik von Achten said the group's market position in India was "not perfect yet" and it was looking at all options, adding that the market was facing consolidation. The company, which entered India in 2006 with a series of domestic acquisitions, now has four plants with an annual capacity of 12.6 million tonnes, according to its website. HeidelbergCement India's shares climbed 8% following the report. It is due to report quarterly results later this week. UltraTech reported an upbeat third-quarter results last week. ($1 = 86.4275 Indian rupees) Sign in to access your portfolio
