ZURICH (Reuters) -Holcim reported better than expected operating profit during its third quarter, the construction materials maker said on Friday, despite a downturn in sales.
The company, which is planning to spin off its North American business next year, posted recurring operating profit of 1.67 billion Swiss francs ($1.93 billion) for the three months to the end of September.
The figure was slightly ahead of analyst forecasts for 1.65 billion francs in a company supplied consensus.
The profit was helped by the company increasing its profit margin to 23.5% from 21.8% a year earlier, as Holcim (SIX:) sold more of its more profitable low carbon cement, roofing and other building products.
This compensated for lower revenues, which fell 3% to 7.12 billion francs, missing forecasts for 7.19 billion francs.
“Our Q3 results confirm Holcim’s strong earnings profile, with broad-based growth drivers delivering record recurring EBIT and a record margin,” said Chief Executive Miljan Gutovic.
Holcim confirmed its full-year guidance to increase its sales in the low single-digit percentage range in local currencies, and increase its recurring operating profit at a higher rate.
The company said the intended U.S. listing of its North American business was still on track to be completed in the first half of 2025.
($1 = 0.8656 Swiss francs)