LafargeHolcim 1Q Profit Fell as Virus Hit Sales

   By Martin Mou 
 

LafargeHolcim Ltd.'s first-quarter profit and sales both fell as the coronavirus pandemic hit business, it said Thursday, forecasting more pain ahead in the second quarter.

The Swiss cement maker's recurring earnings before interest and taxes for the period dropped to 262 million Swiss francs ($269.1 million) from CHF305 million in the year-earlier quarter.

Net sales slid to CHF5.29 billion from CHF5.96 billion.

LafargeHolcim said it still had a strong start to the year as its performance to mid-March, when Covid-19 spread beyond China into all business regions, was well ahead of last year's.

The company said it expects the biggest impact from the virus will be in the second quarter.

"The full impact of the crisis on the company's 2020 results cannot be assessed at this point," it said.

However, LafargeHolcim said it is well-positioned to weather the crisis and will reduce fixed costs and capital expenditure this year by CHF300 million and CHF400 million, respectively.

The company has also secured liquidity of CHF8 billion, it said.

Write to Martin Mou at [e-mail]

(END) Dow Jones Newswires

April 30, 2020 01:13 ET (05:13 GMT)

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