HeidelbergCement: shares fall despite record results

(CercleFinance.com) - HeidelbergCement, the fourth-biggest cement manufacturer in the world, reported record figures for 2017, but shares fell after the German group gave a "cautious guidance" for 2018.


Profit for the year reached 1,058 million euro, up 27% relative to 2016, while revenue rose 14% to 17.3 billion euros.

HeidelbergCement - which says the integration of Italcementi is "successful" - will propose a 19% increase to 1.90 euro in its dividend to shareholders, from 1.60 euro the previous year.

However, analysts said the group gave a "cautious guidance" for 2018.

"Although the 2018 environment looks fine, with volume growth expected on the back of reasonable energy cost inflation, guidance looks very conservative to us," commented Bryan Garnier.

HeidelbergCement said it expects to increase revenue "moderately" this year, with a mid- to high-single-digit percentage increase in earnings from current operations.

The shares were down 1.6% at 80.3 euros in early morning trading on the Frankfurt Stock Exchange.

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