HeidelbergCement: 2018 outlook confirmed

(CercleFinance.com) - German cement maker HeidelbergCement has confirmed its outlook for 2018 at its capital markets day which is being held in Bergamo today.


Beyond the presentation of its "Vision 2020" plan, the group has used the occasion to update its financial targets and strategic priorities.

HeidelbergCement said it plans to increase free cash flow generation to about six billion euros in the three-years until 2020, driven by efficiency gains, a further reduction in financial costs, and disciplined capex.

In this three-year period, the group expects to generate proceeds from disposals in a range of 1 billion to 1.5 billion euros, which will be used to finance capex of between 1.5 billion euros and 2 billion euros, it said.

This means that the net increase in capex will be limited to a maximum of 1 billion euros over three years, thanks to active portfolio management, it said.

However, these announcements have not great impact on HeidelbergCement's share price this morning, with it currently up just 0.4% at 79.1 euros.

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