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| Holcim Q1 slumps 80%; sees strong sales in India |
| Press Trust of India / Zurich/New Delhi May 06, 2009, 21:14 IST |
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Leading cement maker Holcim has posted a nearly 80 per cent drop in the first quarter profits at 74 million Swiss francs (about $65.5 million) even as the company saw strong sales in India.
Holcim's two Indian group companies are leading cement manufacturers ACC and Ambuja Cements.
The Swiss firm recorded profits to the tune of 74 million Swiss francs on net sales of 4.52 billion Swiss francs, it said in a statement.
The cement maker was hit by slowing construction activity in the wake of the global economic turmoil. Further, "prolonged cold spells" also resulted in a sharp decline in deliveries of building materials in Europe.
"The two Indian group companies ACC and Ambuja Cements increased their sales of cement significantly in all areas.
"The construction sector in most of Group region Asia Pacific operated at capacity, and demand for building materials was brisk, accordingly. Particularly in India, the group companies benefited from rural housebuilding and the government’s economic stimulus program," the firm said.
However, the adverse impact of global economic crisis affected growth momentum in some countries, it added.
Holcim has also warned that 2009 would be a difficult year.
"The global crisis combined with the weather-related sluggish start to the new year in many construction markets confirms that 2009 will turn out to be a difficult year.
"In Europe and North America, the next few months will show to what extent the decline in demand for building materials is attributable to the hard winter as opposed to the recessionary environment," the statement said.
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