The 2010 profit margin was around 4%, with Holcim posting a EUR196.4 million turnover last year.
In pre-crisis years, cement industry companies were among the most profitable in the economy, with margins of 10% to 30%.
Another big cement market producer, which recently announced its 2010 financial results, is Germany’s HeidelbergCement, whose net profit margin remained high, at almost 25%.
Holcim Romania will distribute 98% of its net profit as dividends, less than in the past years. In 2009, for instance, Holcim distributed RON94.3 million as dividends.
The company reported earnings before interest and taxes, or EBIT, of EUR25 million, down 53%.
Average monthly salaries in Holcim Romania amounted to RON3,706, according to ZF calculations, which consider overall employee pay and the total number of employees. This is the first time that a top cement producer reveals its salary fund. The 2010 salary raise amounts to 10%, considering that in the previous year the average income per employee was RON3,353. Holcim representative did not say whether this was the average net salary or the average gross salary.
Local cement production fell by around 11% in 2010, to 6.9 million tons, while cement consumption fell 12%, to 6.85 million tons. This year the cement market could stagnate or grow by 1 to 2%, and is only expected to rise faster in election year 2012, say representatives of cement industry business owners’ association (CIROM).
The first quarter came with good news for cement producers, with cement output up by around 13% to 798,000 tons, while sales were up 7.6% in the same period, to 734,000 tons.
“The challenge on the overall construction market and on the cement market in particular is to see infrastructure develop. If we make progress in this respect, (…) it could directly influence cement consumption,” says Daniel Bach, general manager of Holcim Romania, who took over from Markus Wirth almost three months ago. The latter had been at the helm of the Romanian subsidiary of the Swiss company for seven years. Bach added that in 2011, Holcim Romania’s turnover could stagnate or decline 5% on the year under the worst-case scenario.
The company announced EUR35 million investments for 2011, 75% more than last year. The money will mainly go towards environmental and energy efficiency projects.