Holcim Group cement deliveries:

Asia Pacific reaches 16.8 million tonnes

Sri Lanka, Malaysia and Thailand experienced a decline in cement consumption during the last quarter and according to a report from Holcim group cement deliveries in group region Asia Pacific reached 16.8 million tonnes.

The Indian Group companies and Holcim Indonesia were key drivers of this positive sales development. Sales of aggregates increased by 10 percent to 1.1 million tonnes. Ready-mix concrete delivery volumes were down by 5.9 percent to 1.6 million cubic meters. This was due to the restrained construction activity in the urban centers of Jakarta and Bangkok and a decline in business activity in New Zealand, the report said.

The two Indian group companies ACC and Ambuja Cements increased their sales of cement significantly in all areas.

Holcim Bangladesh also recorded a rise in sales volumes. At the Saraburi plant, Siam City Cement had to temporarily close another kiln line in response to falling cement and clinker exports.

Holcim Vietnam held its own in a rather difficult cement market and was able to significantly increase sales of ready-mix concrete. In local currency terms, virtually all Group companies in Asia Pacific increased their operating EBITDA. The two Indian Group companies made a significant step forward.

The companies in Vietnam, the Philippines and Indonesia also improved their results. Although the majority of local currencies lost ground against the Swiss franc, massively in some cases, the operating EBITDA of this Group region increased by four percent to CHF 419 million. The Group region posted positive internal operating EBITDA growth of 17.9 percent.

The Philippine Group company increased its sales of cement and ready-mix concrete, while reducing exports of clinker and cement in favour of domestic demand. Holcim Indonesia exports more than compensated for a dip in domestic cement sales caused by market and weather factors.

In Australia, Cement Australia's sales suffered from a weaker market coupled with adverse climatic conditions.

Floods in the north of Queensland and a record heat wave in the state of Victoria led to delays in important road building projects.

In New Zealand, the recession continued to soften demand for building materials. Holcim was only able to achieve higher sales volumes in the aggregates segment.

Meanwhile the 685 shareholders attending the 97th AGM of Holcim Group recently voted in favour of all motions by a large majority.

Among the approved proposals was the distribution of a share dividend. Chairman of the Board of Directors, Rolf Soiron said that the Group is well prepared for the current crisis. A strong balance sheet, sufficient liquidity and systematic cost management ensure that Holcim after the crisis will be stronger than Holcim before the crisis.

CEO,Markus Akermann said that last year Holcim was quick to implement the necessary corrective measures in the markets hit by the crisis.

Top priority is being given to stringent cost management. Holcim today has one of the strongest balance sheets in the construction materials industry and will remain an attractive, financially sound company and are convinced that Holcim will emerge from the crisis stronger than before and profit significantly from the next economic upswing.