Holcim Profit Gains on Firm Demand for Sustainable Products
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Article content(Bloomberg) — Holcim Ltd. reported stronger-than-expected profit in the first quarter, as robust demand for its more sustainable building materials helped offset an unfavorable exchange rate and unusually cold weather.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentRecurring earnings before interest and taxes rose by 8.3% to 431 million Swiss francs ($548 million), the Zug-based company said Friday. That was above a company-compiled consensus for 407 million francs.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentIn Europe, strong sales momentum in March and a successful pricing markup strategy partly softened the weather impact, it added.Article contentArticle contentGrowing pressure on the construction sector to decarbonize is lifting demand for Holcim’s products and the company confirmed it expects profit to increase by as much as 10% this year. Booming infrastructure activity in Europe and a surge in residential building permits are also seen underpinning its business.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThat should help it cope with a stronger Swiss franc, which Holcim said depressed sales by 5.6% in the first quarter. The haven currency is up by about 0.7% this year following a surge of roughly 14% in 2025, supported by volatile geopolitics and a slide in the US dollar.Article contentAfter peaking in February, Holcim shares have since slipped and are down around 8% this year.Article contentThe company said its use of alternative fuels increased to 70%, helping shield it from exposure to a jump in energy prices triggered by the US-Israeli war on Iran.Article contentStill, even if the conflict were resolved immediately, analysts say it could take months or longer to restore crude flows to anything approaching normal, stoking concern about the impact of expensive fuel on the cement sector, one of the most energy-intensive industries.Article contentArticle contentHolcim says it’s 60%-70% hedged on energy, according to Morgan Stanley analyst Cedar Ekblom.Article contentJefferies analyst Glynis Johnson said in a note there was no impact on Holcim from the Iran war in the first quarter beyond its exposure to the Middle East, which she said is 1% of group earnings.Article contentWhile it recently exited Jordan, Iraq and Lebanon as part of efforts to streamline its portfolio, the company still supplies several projects in the region, including the expansion of Dubai’s Al Maktoum International Airport and the Pan-Gulf rail project.Article contentHolcim announced plans to invest 20 million francs annually in artificial intelligence initiatives focusing on four areas — production, logistics, commercial and administration — and is targeting a positive impact on profit of 200 million francs by 2028.Article contentIt said it closed five transactions in the first quarter, including the acquisition of a majority stake in Cementos Pacasmayo.Article content—With assistance from Peter Vercoe.Article content(Updates with details from statement starting in second paragraph.)Article contentTrending Canada's condo supply is about to fall off a cliff Real Estate Trump ‘gold card’ visa granted to only one person, Lutnick says News An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining CPP, OAS and other strategies to help seniors face a more expensive retirement Debt Say goodbye to fixed mortgage rates below 4% Mortgage Rates Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canada's condo supply is about to fall off a cliff Real Estate Trump ‘gold card’ visa granted to only one person, Lutnick says News An old factory in Welland, Ont., sat derelict for years — until someone discovered it could be worth billions Mining CPP, OAS and other strategies to help seniors face a more expensive retirement Debt Say goodbye to fixed mortgage rates below 4% Mortgage Rates