HOLCIM BEATS PROFIT FORECAST IN FIRST QUARTER

ZURICH (Reuters) - Holcim reported better than expected profit at the start of the year, the building materials and cement maker said on Thursday, despite the high value of the Swiss franc weighing on sales.

The Swiss company, which is due to separate and spin off its North American business next year, reported recurring operating profit (EBIT) rising 7.8% to 532 million Swiss francs ($581.80 million), beating analyst forecasts for 501 million francs.

Sales fell 2.4% to 5.59 billion francs, roughly in line with forecasts for 5.62 billion Swiss francs in a company gathered consensus.

Still, in local currencies - which cut out the translation effect of the franc's strength - sales increases by 3.4%, Holcim said.

"In Q1 2024, we delivered over-proportional recurring EBIT growth of 17.1% in local currency, which more than offset the strength of the Swiss franc," said Chief Executive Jan Jenisch.

The company confirmed its full year outlook, saying it still expected to increase its currency adjusted sales by 4% with an extra 2% in sales growth coming from acquisitions.

During the quarter Holcim, whose results are seen as a proxy for the broader construction industry, made five acquisitions and four divestments.

($1 = 0.9144 Swiss francs)

(Reporting by John Revill)

2024-04-25T05:48:04Z dg43tfdfdgfd