💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

UPDATE 1-HeidelbergCement raises Italcementi synergy target

Published 2017-03-16, 02:32 a/m
© Reuters.  UPDATE 1-HeidelbergCement raises Italcementi synergy target
HEIG
-

* Company cut 1,870 jobs by end-2016 vs planned 500

* Proposes dividend of 1.60 eur/shr vs Rtrs poll avg 1.54 eur

* Trading update disappointed market last month (Adds details on guidance)

BERLIN, March 16 (Reuters) - Germany's HeidelbergCement (DE:HEIG) HEIG.DE raised its target for cost savings from the acquisition of Italcementi after cutting jobs almost four times as fast as planned in 2016 and proposed to raise its 2016 dividend by a better-than-expected 23 percent.

The maker of cement, aggregates and ready-mixed concrete, said it had cut 1,870 jobs by the end of 2016 versus the 500 originally planned, and raised its synergy target to 470 million euros ($504 million) from 400 million euros.

The proposed dividend of 1.60 euros per share is above the average estimate of 1.54 euros in a Reuters poll. disappointed the market last month with a trading update in which it blamed bad weather and a weak Indonesian market for a 4 percent slide in fourth-quarter sales, and said it would now focus on raising prices. Thursday, the company forecast a moderate increase in 2017 revenue and pro forma result from current operations, as well as a significant rise in net profit before one-offs.

By moderate, HeidelbergCement means medium single-digit to low double-digit growth.

"We remain cautiously optimistic about 2017," Chief Executive Bernd Scheifele said in a statement. "HeidelbergCement will benefit from the good and stable economic development in the industrial countries."

These countries - the United States, Canada, Britain, Germany, the northern European countries and Australia - generate 60 percent of HeidelbergCement's revenue.

($1 = 0.9323 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.