BERLIN: Heidelberg Materials , the world’s second-largest cement maker, posted a better-than-expected second-quarter operating profit on Thursday, citing price adjustments and strict cost management.
The group’s result from current operations (RCO) rose 8% to 1.05 billion euros ($1.20 billion), beating the 1.03 billion euros forecast in a company-provided poll.
“Next to price adjustments, our strict cost management has proven particularly effective in the second quarter,” CEO Dominik von Achten said.
The company also confirmed its full-year forecast for RCO between 3.25 billion and 3.55 billion euros, with the expectation that demand in the construction sector will stabilise.
“Even though demand in some regions is still volatile, stabilisation in our core markets is continuing,” said the CEO.
In recent years, the construction industry has been sluggish due to inflation and high energy prices, and sales of cement, sand, gravel, and concrete have declined within the group.
In response, the company said it will continue to focus on strict cost management and price adjustments to hit its 2025 targets.
“Our ongoing Transformation Accelerator initiative is proceeding exactly according to plan and, with further increases in savings, has helped us to improve our earnings once again,” said von Achten.
