Economy & Market
Holcim net income up
Holcim succeeded in increasing net income and cash flow from operating activities, further reducing net financial debt compared with the end of March 2012 and achieving a better ROIC wbefore tax. This was achieved despite the weaker construction activities in India, Morocco and France, the harsh winter in the northern hemisphere and the early Easter period which reduced the number of working days. Market and weather-induced decreases in sales volumes in all segments and higher variable costs impacted operating results. Price improvements, cost savings, primarily in fixed costs in Europe and Latin America, and the sale of a stake of 25 per cent in Cement Australia compensated for this and as a result Holcim was able to report an increase in net income in the first quarter. This success was substantially supported by the Holcim Leadership Journey. Consolidated net sales were 7.2 percent lower at CHF 4.3 billion.