November 8, 2017 / 6:22 AM / a year ago

HeidelbergCement beats third-quarter profit forecasts as cost cuts accelerate

FILE PHOTO - A logo of HeidelbergCement is pictured at their headquarters in Heidelberg, Germany, June 21, 2016. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - Germany’s HeidelbergCement (HEIG.DE) beat expectations for third-quarter profit as cost cuts from its $4 billion takeover of Italcementi kicked in ahead of schedule.

Operating income before depreciation (OIBD) rose 5 percent to 1.06 billion euros (933.53 million pounds), beating the average Reuters poll forecast of 1.04 billion euros. Net profit jumped 42 percent to 481 million euros.

The German cement, aggregates and concrete maker said on Wednesday it had already achieved cost cuts of 254 million euros, beating its 2017 target of 175 million, and it was confident it could reach its 2018 target this year.

“Overall, the acquisition of Italcementi will have a clearly positive impact on earnings per share already in 2017,” it said.

HeidelbergCement confirmed its 2017 outlook for a moderate increase in revenue, mid-single to double-digit percentage in OIBD growth, and a significant rise in profit before one-offs.

Third-quarter revenue rose 4 percent on a comparable basis to 4.6 billion euros, in line with expectations.

Reporting by Georgina Prodhan; Editing by Maria Sheahan

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