ZURICH--Holcim Ltd (HOLN.VX) Wednesday reported a 9% increase in first-half net profit as higher demand from emerging market countries and the U.S. offset a weak European cement market, and raised its outlook for North America.

MAIN FACTS:

- Consolidated net sales increased 2.1% to 10.4 billion Swiss francs.

- Operating EBITDA rose 1.9% to CHF1.9 billion, despite the poor state of the European market and restructuring costs in markets such as Spain, the U.K., Brazil and Mexico of CHF37 million.

- Net income rose 6.6% to CHF624 million and the share of net income attributable to shareholders of Holcim Ltd gained 9% to CHF389 million.

- Cash flow from operating activities reached CHF211 million, an increase of 194.2% on the same period last year, due to higher operating EBITDA and lower taxes paid.

- Net financial debt rose since year-end 2011 5.3% to CHF12.2 billion.

- Consolidated cement sales increased 4.4% to 74 million tonnes, while deliveries of aggregates declined 7% to 75.6 million tonnes, and ready-mix concrete volumes by 1.3% to 22.8 million cubic meters.

- The Board of Directors and the Executive Committee initiated the "Holcim Leadership Journey" program with the aim of increasing the return on invested capital to at least 8% after tax between 2012 and the end of 2014.

- Appropriate measures are being introduced to further strengthen Customer Excellence and Cost Leadership and increase the operating profit by at least CHF1.5 billion by the end of 2014, with a target of at least CHF150 million for the 2012 financial year.

- The program was launched Group-wide in May.

- Holcim expects demand for building materials to rise in emerging markets in Asia and Latin America, as well as in Russia and Azerbaijan, in 2012.

- While demand in North America should beat the previous outlook, Holcim now expects a decline in Europe.

-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47; zurichdjnews@dowjones.com

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