Holcim's profit is down 34.5%, while rivals see increases

Holcim Romania, provider of construction materials and local subsidiary of the Swiss group Holcim, reported a 34.5% decline in net profit last year, to 114.5 million RON (34.3 million euros). Under the circumstances, the company’s net margin fell 11.5% against 22.6% in 2006. Last year was the best year in the constructions sector since 1990, when the market saw a 34% increase on the previous year. The main factors that caused profit to decline were the accelerated increase of operating expenditures compared with the sales increases, and the appreciation of the euro against the RON. “The reduction is, on the one hand, due to operating expenditures rising at a faster rate than sales, as well as to the excessive depreciation of the national currency against the euro towards the end of 2007, which caused financial losses. Holcim’s main rivals, Lafarge and Carpatcement Holding, saw 59% and 69% net profit increases, respectively.