After reporting a fourth quarter 2015 dip in sales, LafargeHolcim, the world’s biggest cement maker, expects growth of two to four percent in its building materials markets moving forward in 2016. LafargeHolcim reports:

  • Q4 Net Loss at CHF 2.86bn includes CHF 3 .0bn impact of asset impairment and other charges*
  • Q4 Free cash flow of CHF 813m after adjusting for one – off items of CHF 166m*
  • Net debt level at CHF 17.3bn
  • Merger on track and integration largely completed: 2015 targets on capex, synergies and net debt were exceeded
  • CHF 813m free cash flow drives CHF 1bn of debt reduction in fourth quarter, despite continuing challenging conditions in selected markets
  • More than one third of divestments secured and the remainder of the program is on track
  • 2018 targets confirmed with 2016 to show solid progress towards these objectives based on the combined effect of synergies, additional cost reductions and a strengthening pricing environment
  • Proposed dividend of CHF 1.50 per share

*Full Year Net Income and Full Year Free Cash Flow are not shown as the full year figures are not comparable due to the merger

LafargeHolcim CEO Eric Olsen said, “We expect to see the combined effect of synergies, additional cost reductions and a strengthening pricing environment driving solid progress towards our 2018 objectives. Free cash flow generation is the key measure of our value creation strategy. With strict capital allocation discipline and the maximization of our cash flow, we are committed to maintaining solid investment grade rating and returning cash to shareholders.”

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