Holcim Ltd : Holcim CEO : Cost Cuts To "Significantly" Improve Profitability
05/09/2012| 04:06am US/Eastern
Holcim Ltd's (HOLN.VX) new cost reduction plan will "significantly" improve the cement maker's profitability, Chief Executive Bernard Fontana said Wednesday.
"The aim of the program is to significantly improve operating profit and return on invested capital," Fontana said on a conference call.
The Swiss company's intention is to raise return on invested capital after tax above 8%, he said.
"In past years we have been below this level, and we want to be above it," Fontana said.
The measures would improve profit margins, which have declined in the face of rising fuel and raw material costs, as well as lower sales volumes in some markets such as Europe.
But Fontana declined to give details on what measures would be implemented to achieve the goal, saying the steps would be announced next week.
He was speaking as Jona-based Holcim reported flat net profit of CHF10 million for the first three months of 2012.
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ; firstname.lastname@example.org