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LafargeHolcim posts quarterly loss, ends share buyback program

Construction materials maker LafargeHolcim Ltd. on March 2 posted a fourth-quarter 2017 net loss after incurring CHF3.83 billion in impairment charges and said it will discontinue a share buyback program as the company unveiled its five-year growth plan.

LafargeHolcim recorded a net loss attributable to shareholders of CHF3.12 billion in the fourth quarter of 2017, compared with a net profit of CHF453 million in the year-ago period. Net sales increased to CHF6.70 billion for the period from CHF6.53 billion in the prior year.

The fourth-quarter operating loss came in at CHF2.89 billion, compared with an operating profit of CHF612 million a year earlier. The company cited the impairment charges, two-thirds of which were related to operations in Algeria, Malaysia, Iraq, Brazil, Indonesia and Egypt.

For the full year, the company posted a net loss of CHF1.68 billion, compared with net income of CHF1.79 billion in 2016. Full-year net sales slipped to CHF26.13 billion from CHF26.90 billion a year ago.

The company's board of directors recommended a dividend of CHF2 per share, stable compared to the prior year.

LafargeHolcim said it will halt a CHF1 billion share buyback program it launched in late 2016. It said CHF581 million worth of buybacks have been completed.

The Swiss company also outlined its growth strategy through 2022, noting that it plans to capitalize on the expansion of the global building materials market, which is estimated to grow 2% to 3% per annum.

For 2018, LafargeHolcim estimates net sales will grow 3% to 5%.