LafargeHolcim Issues 2019 Guidance Ahead of Investor Day -- Update

Updates with background, CEO and analyst quote.

 
   By Nathan Allen 
 

LafargeHolcim Ltd. (LHN.EB) on Wednesday set new financial targets for 2019 ahead of its capital-markets day.

The Swiss building-materials maker said it expects like-for-like net sales growth of between 3% and 5% in 2019. Growth in recurring earnings before interest, taxes, depreciation and amortization should be at least 5%.

LafargeHolcim said it wants to accelerate deleveraging and post a net debt to recurring Ebitda ratio of two-to-one by the end of 2019. At the end of 2018, net debt was 2.6 times Ebitda.

The company confirmed its adjusted 2018 guidance for sales to grow between 4% and 6% and for recurring Ebitda growth of between 3% and 5%.

In March the group launched a five-year strategic plan focused on boosting revenue and earnings by cutting costs and selling off at least 2 billion Swiss francs ($2.00 billion) in assets.

LafargeHolcim has since closed offices in Singapore and Miami and agreed to sell its majority stake in Holcim Indonesia (SMCB.JK) to Semen Indonesia (Persero) (SMGR.JK) for $1.75 billion, bringing the company within striking distance of completing its divestment program.

Chief Executive Jan Jenisch said the strategy was being executed at "full speed" and described the Indonesia sale as a major milestone that will help pay down debt.

Vontobel analyst Bernd Pomrehn said releasing the 2019 targets so early demonstrates LafargeHolcim's confidence in its ability to achieve its longer-term goals.

Write to Nathan Allen at [e-mail]

(END) Dow Jones Newswires

November 28, 2018 02:42 ET (07:42 GMT)

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