By Kim Richters
LafargeHolcim Ltd. (LHN.EB) said Wednesday that earnings rose strongly in the first-half but sales slightly fell.
The Swiss cement maker reported a net profit of 1.01 billion Swiss francs ($1.02 billion) for the first six months of the year, compared with CHF318 million a year earlier. Net income before impairments and divestments was CHF780 million, up from 371 million.
Sales fell to CHF13.06 billion from CHF13.27 billion, the company said. On like-for-like basis, net sales grew 3.5%.
While regional performance in Europe was supported by "good market dynamics," net sales in North America were hit by weather and flooding, the company said.
LafargeHolcim's recurring earnings before interest, taxes, depreciation and amortization without the effects of the IFRS16 accounting standard edged up to CHF2.66 billion from CHF2.48 billion.
The company backed its guidance for the full year, expecting net sales growth of 3%-5% and a recurring Ebitda pre-IFRS16 growth of at least 5% on like-for-like basis.
"Our financial discipline resulted in strong progress in cash flow and a significant reduction in debt," LafargeHolcim Chief Executive Jan Jenisch said.
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