Holcim Falls as UBS Sees FX Headwinds: Zurich Mover

(Corrects Indonesian currency in fourth paragraph.)

Holcim Ltd. (HOLN), the world’s largest maker of cement, fell the most in a month after UBS AG (UBSN) said foreign-exchange headwinds will eat into 2014 profit margins.

Shares declined as much as much as 3 percent, the biggest intraday drop since July 16 in Zurich, and traded 2.9 percent lower as of 12:45 a.m., giving the Jona, Switzerland-based company a market capitalization of 22.5 billion Swiss francs ($24.3 billion).

Currency fluctuations will cut Holcim’s earnings before interest, taxes, depreciation and amortization by about 190 million francs in 2014, UBS analyst Gregor Kuglitsch wrote in a note to investors today. Kuglitsch reduced his rating from buy to neutral.

The Indian rupee and the Indonesian rupiah have depreciated about 12 percent and 8 percent respectively against the franc this year. Asia-Pacific, Holcim’s largest region by sales, contributed 40 percent to 2012 sales and 44 percent to Ebitda.

The Swiss cement maker reported second quarter earnings of 5.3 billion francs on Aug. 15, short of the 5.5 billion-franc average estimate in a Bloomberg survey, as sales from India to Mexico missed expectations.

To contact the reporter on this story: Patrick Winters in Zurich at pwinters3@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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