Holcim raises full-year profit guidance after third-quarter results beat forecasts

what happened

Reuters reported that Holcim, the Swiss cement producer, raised its full-year earnings outlook on Friday after its third-quarter sales and profit came in above market expectations. Recurring operating profit climbed 17% to CHF 976 million, equal to $1.19 billion, for the three months ending in September, topping the company-compiled consensus of CHF 949 million. Revenue reached CHF 4.66 billion versus a forecast of CHF 4.59 billion.

The company now expects recurring operating profit to rise 10-12% this year, up from its earlier forecast of 10%. Chief executive Miljan Gutovic credited higher demand for premium products, tight cost control and operational efficiency for growth and margins over the first nine months.

why it matters

For investors, the raised outlook suggests that demand for higher-value building materials and pricing power are holding up against cost pressures, keeping margins resilient. That matters across the European building materials sector. The report converts francs to dollars at 0.8209 Swiss francs per dollar.

market impact

Holcim and building materials stocks: a higher profit outlook supports earnings and margin expectations.

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