About Holcim
In 2007, Holcim recorded sales of over 27 billion Swiss Francs.
The Group currently employs some 90,000 people. With market
oriented structures, new products, skilled employees and efficient
environmental management systems, Holcim ensures a strong position
now - and for the years ahead.
Holcim holds majority and minority interests in more than 70
countries on all continents.
Regional influences
In Europe, almost all Group companies improved their financial
results. The key factors were higher operating efficiency, overall
stable sales development and the predominantly positive price
environment. Worthy of particular mention are the good results
achieved by Holcim France Benelux and Aggregate Industries UK. Due
to rising cement prices and increasing export volumes, Holcim
Germany was also able to increase its operating performance. The
Group companies in eastern and southeastern Europe posted
substantially better results, led by Holcim Romania and Holcim
Bulgaria. In Russia and Azerbaijan, the Group companies achieved a
remarkable increase in operating profit. Operating EBITDA rose by
22 percent to CHF 2.399 billion in Group region Europe, while
internal operating EBITDA growth was 11.5 percent.
Investment activity
In 2007, Holcim spent CHF 2.277 billion net
(2006: 2.054) on financial investments, mainly in connection with
the minority buyout of St. Lawrence Cement in Canada and the
strengthening of the shareholdings in the two Indian Group
companies. This net amount includes the sale of a stake in South
Africa. Investments in production and other fixed assets of CHF
2.245 billion net (2006: 1.265) included major expansion projects
in the US, India, Romania, Bulgaria and Morocco. During the year
under review, the Group commissioned 6.7 million tonnes of
additional cement capacity. Holcim also strengthened the aggregates
business and gained greater proximity to customers through further
investment in ready-mix concrete, particularly in Europe and the
US. Investments in property, plant and equipment to maintain
productive capacity and to secure competitiveness amounted to CHF
1.043 billion (2006: 1.062).
Concrete as a building material of the
future
In terms of volume, usage of the end product
concrete in the world today is greater than any other commodity
apart from water. Concrete is therefore of huge importance to
economic development. Given its long life cycle, concrete is one of
the most eco-friendly building materials. Sustainable urban
development and the creation and expansion of modern infrastructure
would not be possible without it. There is huge pent-up demand in
the growth markets of Asia, Latin America and eastern Europe.
Together with the Holcim Foundation for Sustainable Construction,
Holcim supports research and development into innovative
sustainable solutions in the construction industry. This is all the
more urgent because the built environment accounts for some 40
percent of energy consumption in the world today. Holcim also
underscores its commitment to the environment with intensive
research into new technologies for the production process and
environmentally friendly products. The Group is already making a
significant contribution to limiting CO2 emissions and is on course
to hit its target of voluntarily reducing specific CO2 emissions by
20 percent per tonne of cement between 1990 and 2010.
Sustainable Development
For the third year in a row, the Dow Jones
Sustainability Index has recognized Holcim as "Leader of the
Industry". This provides independent confirmation that Holcim is
committed to sustainability and social responsibility. Group
companies have also won numerous awards, while the Sustainable
Asset Management Group (SAM), in cooperation with
PricewaterhouseCoopers, presented Holcim with the "Sector Leader"
prize and a "Gold Class" distinction at the World Economic Forum
2008 in Davos.
Outlook for 2008
It is not easy to judge how far the turbulence
in the financial markets will affect the real economy. However, the
Board of Directors and the Executive Committee expect the emerging
markets, where three quarters of the cement production capacity is
located, to continue to grow. As a globally active company, Holcim
remains confident. It enjoys excellent geographical
diversification, offers innovative products and services, has
expert teams, efficient plants and excellent market positioning. In
2008, the Group is expecting to again reach its long-term growth
target of 5 percent in internal operating EBITDA.