HeidelbergCement forecasts negative impact on its business in 2022
Real Estate

HeidelbergCement forecasts negative impact on its business in 2022

On Thursday, HeidelbergCement, the world's No. 2 cement maker, forecast a negative impact on its business in 2022 due to a significant increase in energy costs due to Russia's invasion of Ukraine.

Like steel and chemicals, cement generation is among the more energy-intense production processes, making power costs a critical factor in deciding whether firms can hit their profit targets.

On Thursday, HeidelbergCement told the media in its annual report that the costs for energy have grown drastically within a few days, and the further development cannot be foreseen presently.

Due to the present very volatile impacts on the energy markets, the Managing Board assumes a negative hit also on the key performance indicators. Shares in the company, which also revealed a 2021 dividend proposal of 2.40 euros per share, were 1.4% lower at the bottom of Germany's benchmark index.

The firm still confirmed its 2022 outlook, forecasting a substantial increase in sales and a slight rise in the result from current operations before consolidation and exchange rate effects. It cautioned that it was presently impossible to render a reliable forecast of their operating business activities, indicating the lack of clarity on how the Ukraine crisis will develop.

Image Source

Also read: HeidelbergCement’s net profit slumps 4.55% to Rs 59.56 cr in Q2 FY22

On Thursday, HeidelbergCement, the world's No. 2 cement maker, forecast a negative impact on its business in 2022 due to a significant increase in energy costs due to Russia's invasion of Ukraine. Like steel and chemicals, cement generation is among the more energy-intense production processes, making power costs a critical factor in deciding whether firms can hit their profit targets. On Thursday, HeidelbergCement told the media in its annual report that the costs for energy have grown drastically within a few days, and the further development cannot be foreseen presently. Due to the present very volatile impacts on the energy markets, the Managing Board assumes a negative hit also on the key performance indicators. Shares in the company, which also revealed a 2021 dividend proposal of 2.40 euros per share, were 1.4% lower at the bottom of Germany's benchmark index. The firm still confirmed its 2022 outlook, forecasting a substantial increase in sales and a slight rise in the result from current operations before consolidation and exchange rate effects. It cautioned that it was presently impossible to render a reliable forecast of their operating business activities, indicating the lack of clarity on how the Ukraine crisis will develop. Image Source Also read: HeidelbergCement’s net profit slumps 4.55% to Rs 59.56 cr in Q2 FY22

Next Story
Infrastructure Urban

bauma Inspires Progress

bauma reaffirmed its position as the heartbeat of the construction machinery industry. With 6,00,000 visitors and 3,601 exhibitors, the event spotlighted sustainability and digitalisation. Amid global challenges, it fuelled optimism, and future-ready solutions...

Next Story
Infrastructure Urban

IMPACCT.Info: AI Powered Business Intelligence

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read the full article Click Here ..

Next Story
Equipment

Better Concrete Handling

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select WellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?