HeidelbergCement: stock down after guidance fails to impress

(CercleFinance.com) - HeidelbergCement reported growth in sales volume, revenue and profit in the second quarter, with the German cement maker leaving its outlook for 2018 unchanged.


In the quarter, the group's cement and clinker sales volumes rose by 3% to 33.7 million tonnes, prompting revenue to rise by 4% to 4.8 billion euros.

As a result, quarterly earnings increased by 8% to 429 million euros, it said.

For 2018, HeidelbergCement is sticking with its target of a moderate increase in revenues and results from current operations by a mid- to high-single digit percentage before FX factors and consolidation effects, with a significant improvement in earnings over the financial year.

"This guidance implies major acceleration in second-half EBITDA growth," one trader pointed out. "But can it be done?" he asked.

Shares in HeidelbergCement were slightly down (-0.1%) at 72.1 euros after the report.

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