Latest news with #Gutovic
Time of India
26-04-2025
- Business
- Time of India
Holcim posts operating profit of $619 million in Q1 2025
Swiss construction materials maker Holcim reported better than expected first-quarter profit on Friday, in its last results before the spin-off of its North American business Amrize . As a local-to-local business, Holcim was well-prepared to navigate tariff turmoil, CEO Miljan Gutovic told reporters in a media call on Friday, adding that projects in the U.S. remained on track despite bad weather at the beginning of the year. "Look, there is obviously uncertainty, but so far, we have not seen any cancellation of projects," he said. "The pipeline for us is very healthy." Holcim posted recurring operating profit of 515 million Swiss francs ($619 million) for the three months ended March 31, beating forecasts for 494 million francs in a company-compiled consensus. Sales remained stable at 5.54 billion francs, beating forecasts for 5.49 billion francs. "Our disciplined M&A execution continued with five value-accretive acquisitions," Gutovic said in a statement. "These transactions will strengthen our aggregates and ready-mix businesses in Europe and North America , and our specialty building solutions in Latin America ." With Holcim confirming its targets, an acceleration of sales and recurring operating profit growth could be expected throughout fiscal year 2025, Vontobel analyst Mark Diethelm said in a note. Holcim is planning to spin off 100% of Amrize to its shareholders, with the separation expected to be completed in June. The spin-off is expected to be one of the largest deals in the global construction industry, with the company initially targeting a $30 billion valuation when it was announced in January 2024. The transaction still requires approval from Holcim's shareholders at the company's AGM on May 14, with Amrize planning listings on the New York Stock Exchange and the SIX Swiss Exchange. The company outlined its post-split strategy last month, in which it said it was targeting average annual growth in earnings before interest and taxes of 6% to 10% by 2030. It will focus on Europe, Australia, North Africa, and Latin America, and expand its focus on building solutions, including foundations, flooring, walling and roofing. Holcim, which in 2024 had net sales of 16.3 billion francs excluding North America, would have a total estimated capital deployment capacity of 18-22 billion francs from 2025 to 2030, the company said, with the cash earmarked for large acquisitions and share buybacks.
Yahoo
29-03-2025
- Business
- Yahoo
Holcim to target M&A deals to fuel growth following Amrize spin-off
ZURICH (Reuters) - Holcim is targeting average annual growth in earnings before interest and taxes of 6% to 10% by 2030, driven in part by mergers and acquisitions, the Swiss cement maker said on Friday. Under a strategy programme dubbed NextGen Growth 2030, the company said it aims to be the "leading partner for sustainable construction", following the planned listing of its North American business Amrize later this year. The Amrize spin-off is expected to be one of the largest deals in the global construction industry, with the company initially targeting a $30 billion valuation when it was announced in January 2024. Holcim, which in 2024 had net sales of 16.3 billion Swiss francs ($18.48 billion) excluding North America, would have a total estimated capital deployment capacity of 18-22 billion francs from 2025 to 2030, the company said. "Excess capital will be allocated to large strategic acquisitions and opportunistic share buybacks," the firm said. Mergers and acquisitions will be one of the key drivers of growth, CEO Miljan Gutovic said. No further spin-offs were planned, he added. Holcim aims to boost building solutions to 50% of net sales by 2030, up from 37% in 2024. Lower-carbon brands should grow to make up more than half of net sales of ready-mix and cement. "We are seeing a strong demand emerging across all our markets for sustainable products," Gutovic said. "This is becoming a norm." Rising carbon costs would be more than offset by a mix shift to sustainable solutions, Vontobel analyst Mark Diethelm said. "We consider the financial targets, which confirm the previous statements, the high cash generation and the planned capital allocation to be attractive," Zuercher Kantonalbank analyst Martin Huesler said. Details of the Amrize spin-off, set to occur in the first half of 2025, were shared with investors on Tuesday. It will require shareholder approval at Holcim's AGM on May 14, with the new company slated to be listed on the New York Stock Exchange and the SIX Swiss Exchange. Holcim will not retain any stake in Amrize, shares of which will be distributed to Holcim shareholders. ($1 = 0.8820 Swiss francs)
Reuters
28-03-2025
- Business
- Reuters
Holcim to target M&A deals to fuel growth following Amrize spin-off
ZURICH, March 28 (Reuters) - Holcim (HOLN.S), opens new tab is targeting average annual growth in earnings before interest and taxes of 6% to 10% by 2030, driven in part by mergers and acquisitions, the Swiss cement maker said on Friday. Under a strategy programme dubbed NextGen Growth 2030, the company said it aims to be the "leading partner for sustainable construction", following the planned listing of its North American business Amrize later this year. The Amrize spin-off is expected to be one of the largest deals in the global construction industry, with the company initially targeting a $30 billion valuation when it was announced in January 2024. Holcim, which in 2024 had net sales of 16.3 billion Swiss francs ($18.48 billion) excluding North America, would have a total estimated capital deployment capacity of 18-22 billion francs from 2025 to 2030, the company said. "Excess capital will be allocated to large strategic acquisitions and opportunistic share buybacks," the firm said. Mergers and acquisitions will be one of the key drivers of growth, CEO Miljan Gutovic said. No further spin-offs were planned, he added. Holcim aims to boost building solutions to 50% of net sales by 2030, up from 37% in 2024. Lower-carbon brands should grow to make up more than half of net sales of ready-mix and cement. "We are seeing a strong demand emerging across all our markets for sustainable products," Gutovic said. "This is becoming a norm." Rising carbon costs would be more than offset by a mix shift to sustainable solutions, Vontobel analyst Mark Diethelm said. "We consider the financial targets, which confirm the previous statements, the high cash generation and the planned capital allocation to be attractive," Zuercher Kantonalbank analyst Martin Huesler said. Details of the Amrize spin-off, set to occur in the first half of 2025, were shared with investors on Tuesday. It will require shareholder approval at Holcim's AGM on May 14, with the new company slated to be listed on the New York Stock Exchange and the SIX Swiss Exchange. Holcim will not retain any stake in Amrize, shares of which will be distributed to Holcim shareholders. ($1 = 0.8820 Swiss francs)
Bloomberg
28-02-2025
- Business
- Bloomberg
Tariff Impact 'Negligible' says Holcim CEO
The Opening Trade "Holcim is producing locally, we are sourcing locally, and whatever we produce we sell locally," says Holcim CEO Miljan Gutovic, when asked about the impact of US tariffs. On Ukraine's post-war reconstruction, Gutovic highlights the Swiss manufacturer's "strong production footprint in neighbouring countries." (Source: Bloomberg)
