Home News Industry News LafargeHolcim announces asset review after weak results

    LafargeHolcim announces asset review after weak results

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    Lafarge and HolcimLafargeHolcim launched a review of the newly combined group’s assets after weak second-quarter results and amid rampant overcapacity in the cement industry. The €41 bn tie-up of French and Swiss cement companies Lafarge and Holcim, creating the world’s largest cement company by revenue, finally closed this month after beating regulatory and management hurdles. It comes amid broad consolidation, with Germany’s HeidelbergCement announced plans to buy Italy’s Italcementi in an effort create the number two group in the sector. Eric Olsen, chief executive of LafargeHolcim, said on Wednesday the combined company had “hit the ground running”, partly through a decision to reduce its capital expenditure in 2015 by SFr200m compared with the predecessor groups’ plans. He added LafargeHolcim was proceeding with an asset review that could lead to disposals. Lafarge’s net income fell 11 per cent year on year to €210m in the three months to June 30, while Holcim reported a 35 per cent decline to SFr263m. Both companies also lowered their full-year earnings guidance.

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