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LafargeHolcim H1 income drops YOY on restructuring costs

LafargeHolcim Ltd. said first-half net income declined despite higher sales as it incurred restructuring costs related to its overhaul.

Net income attributable to shareholders fell to CHF318 million, or 53 centimes per share, in the first six months of 2018, from CHF1.01 billion, or CHF1.67 per share, in the same period last year. Excluding impairment and divestments, profit dropped to CHF371 million from CHF651 million.

Net sales increased to CHF13.27 billion from CHF12.92 billion in the first half of 2017. Sales were up in Asia-Pacific, Europe and North America, but were down in Latin America and the Middle East and Africa.

The construction materials manufacturer took a CHF300 million charge from restructuring, litigation, implementation and other nonrecurring costs, compared to CHF38 million in the first half of last year.

Recurring EBITDA dropped to CHF2.48 billion from CHF2.58 billion. Operating profit came in at CHF1.08 billion, down from CHF1.41 billion a year ago.

The company backed its 2018 targets of 3% to 5% net sales growth, and said its restructuring plan is expected to deliver CHF400 million in yearly cost savings from the second quarter of 2019 onward.