Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on HEIDELBERGCEMENT AG. We currently have 11 research reports from 1 professional analysts.
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Still not earning its cost of capital! Poor organic growth excluding synergies…
17 Mar 17
Key information (on a reported basis): • Revenue rose by 13% to €15.2bn, a 2% decrease on a lfl basis. • Results from current operations increased by 7% and by 3% lfl. • EPS, adjusted for non-recurring effects, increased by 23% to €5.34, according to management. In comparison, Bloomberg’s EPS is €4.60. • Cash flow from operations rose by 29% to €1.9bn (reported basis). • Dividend proposed: €1.60 per share (+23%). • Rated investment grade by S&P, Moody’s, and Fitch.
Weak Q4! FY organic growth driven by synergies?
17 Feb 17
Key information (FY figures): • Group revenue down by 2% lfl and up 13% on a reported basis. • Operating income before depreciation up by 2% lfl to €2.9bn, up 13% on a reported basis. • OIBD margin stable at 19.4%. • Operating income up by 3% lfl up 7% on a reported basis. • Operating margin down by 60bp to 13.1% due to the consolidation of Italcementi. • Cement and aggregates volumes up 3%. • Net debt below €9bn.
Disappointing quarter, not earning cost of capital, Indonesia and net debt!
10 Nov 16
Key information: • Pro forma revenue stable at -0.2% in Q3 and +0.6% on a lfl basis. • Pro forma EBITDA up by 1.3% in Q3 and 1.9% on a lfl basis. • Pro forma operating income up by 3.1% in Q3 and 4.3% on a lfl basis. • Pro forma cement volumes up by 5%. • Pro forma aggregates volumes up by 1%. • Pro forma ready-mixed concrete volumes up by 2%.
Indonesia worrying deterioration of margin
01 Aug 16
Key information (Q2 16 figures): • Group revenue decreased by 1.7% and up by 0.6% lfl. • EBITDA up by 5.2% and by 8.5% lfl. • Operating income rose by 8% on a reported basis and 11% lfl. • Net income increased by 19% in Q2. • Q2 adjusted EPS is 10% above consensus. • Increased sales volumes and margins improvement in all business lines. • Cement sales volumes up by 2%, aggregates up by 3%, ready-mixed concrete by 4% and asphalt by 4%%. • Cash flow from operating activities up by €117m in Q2. • Net debt reduced by 6% compared to Q2 15. • Leverage fell from 2.6x to 2.2x within the targeted range of 1.5x to 2.5x. • Guidance: Moderate rise in revenue (lfl) and moderate to significant increase in operating income (lfl) and profit (adjusted for non-recurring effects) for FY2016.
Disappointing selling price for CCB
25 Jul 16
HeidelbergCement, through its subsidiary Ciments Français, entered into an agreement with Aalborg Portland Holding A/S, a subsidiary indirectly 100% controlled by Cementir Holding, to sell operations in Belgium, primarily consisting of Italcementi’s Belgian subsidiary Compagnie des Ciments Belges (CCB). The disposal was required by the European Commission in order to address competition concerns caused by the Italcementi acquisition. The agreement is subject to the approval of the European Commission. HeidelbergCement expects the transaction to close in the second half of 2016.
Not so good without North America
05 May 16
Key information: • Revenue stable at €2.8bn. • Operating income improved by 34.9% on a lfl basis. • Margin improvement in all divisions. • Net income attributable to the group at €-72m vs €-123m in Q1 15. • Net debt slightly reduced from €6.1bn to €5.9bn. • Guidance for 2016 raised. • Cement volumes increased by 4.5%. • Aggregates volumes increased by 6.5%. • Ready-mixed concrete volumes rose by 1.3%. • Asphalt volumes fell by 11.9%.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)