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UPDATE 1-HeidelbergCement lifts profit guidance for 2016

Published 04/05/2016, 03:37 pm
Updated 04/05/2016, 03:40 pm
© Reuters.  UPDATE 1-HeidelbergCement lifts profit guidance for 2016
HEIG
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ITAI
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* Sees moderate rise in 2016 revenues

* Expects high single to double digit increase in profit

* Q1 OIBD of 321 mln euro above avg analyst f'cast for 306 mln

* Italcementi takeover expected to close in the second half (Adds details on Q1 results)

BERLIN, May 4 (Reuters) - Germany's HeidelbergCement HEIG.DE raised its profit guidance for 2016 after it got off to a better-than-expected start to the year, and said it expected to close its 6.7 billion euro ($7.7 billion) takeover of Italcementi ITAI.MI in the second half.

HeidelbergCement said it now expects a high single- to double-digit increase in adjusted operating income and net profit for this year before one-offs. It had previously forecast a moderate rise.

"In operational terms, the first quarter of 2016 was the best since the financial crisis and thus continues the positive trend of the previous year," Chief Executive Bernd Scheifele said in a statement on Wednesday.

He said the company was benefiting from recovery in the United States, Britain, northern Europe and Australia as well as a trend reversal in Asia, particularly Indonesia.

"The outlook for the global economy is positive, even if major macroeconomic and particularly geopolitical risks still exist," he said.

First-quarter operating income before depreciation (OIBD) rose 7 percent to 321 million euros ($369 million), on sales that were stable at 2.83 billion euros. Its net loss narrowed to 21 million euros from 67 million euros a year earlier.

Analysts had expected revenue of 2.87 billion euros, OIBD of 306 million euros and a net loss of 59 million euros, according to the average estimates in a Reuters poll. 2016 forecast for "moderate" sales growth and "high single to double digit increase" in profit compares with average analyst expectations for rises of 11.5 percent in revenue, 13 percent in OIBD and 15 percent in net income, according to the Reuters poll. ($1 = 0.8709 euros)

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