Operating income before depreciation was 811 million euros ($1.1 billion) in the third quarter compared with 872 million euros a year ago, the Heidelberg, Germany-based company said today in a statement.
Chief Executive Officer Bernd Scheifele today reiterated a full-year forecast for revenue and operating income to gain with pretax profit to rise “significantly.” Lower energy and raw material costs as well as price increases couldn’t compensate for the negative currency effects, the company said today.
“We had to face growing headwind in revenue and operating income in the third quarter due to the significant strengthening of the euro,” the company said in today’s statement.
The shares have gained 29 percent this year, boosting the company’s market value to 11.1 billion euros. The Merckle family holds 25 percent of the company’s stock, according to data compiled by Bloomberg.
Sales fell 1.3 percent to 3.89 billion euros in the third quarter. Net income more than doubled to 580 million euros.
The company, which dates back to 1873, is pursuing 1.01 billion euros in cost savings by the end of 2013 as demand for building materials drops in parts of Europe amid recessions in the region.
Holcim Ltd. (HOLN) and Lafarge SA (LG), the two biggest cement makers, both said earlier this week that they are pushing ahead with cost-cutting measures to boost profitability amid lackluster demand and higher energy costs. Holcim cut its sales forecast for the year on disappointing shipments in India, Mexico and Canada, it said.
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