HeidelbergCement shares fall as group warns of Q4 weakness
* Q4 business will be muted - CEO
* Q3 sales flat on like-for-like basis
* Shares fall as much as 4.9%
(Recasts, adds context, CEO comments)
BERLIN/FRANKFURT, Nov 7 (Reuters) - HeidelbergCement
, the world's No.2 cement maker after LafargeHolcim
, warned on Thursday of a weak end to the year, sending
its shares to the bottom of Germany's benchmark DAX index
"We're observing a weakening of the global economy in our
business," said Chief Executive Bernd Scheifele, who will step
down in February after 15 years at the helm of the company,
adding there had not been a recovery in October.
"Overall, we also expect the fourth quarter to be rather
muted in terms of sales volumes," Scheifele added, pointing to
weak activity in Germany, France and Britain, which suffers from
ongoing uncertainty related to Brexit.
The comments drove shares down as much as 4.9%. At 1348 GMT,
they were trading 4.6% lower, with traders pointing to
third-quarter sales of 5.06 billion euros ($5.6 billion), which
were flat on a like-for-like basis.
Scheifele also sounded a more cautious note than
LafargeHolcim CEO Jan Jenisch, who said last month that The
outlook for 2020 remained good despite problems seen by
HeidelbergCement's third-quarter profit from current
operations was still up 3% at 835 million euros, helped by cost
cuts, including the slashing of up to 500 administrative jobs
around the world.
($1 = 0.9041 euros)
(Reporting by Riham Alkousaa, Patricia Weiss, Oliver Hirt,
Anika Ross and Hakan Ersen; writing by Christoph Steitz; editing
by Thomas Seythal)
First Published: 2019-11-07 08:42:30
Updated 2019-11-07 16:07:17
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