Handelsblatt Exclusive

Heidelberg Cements its Comeback

heidelberg cement factory leimen in bw source dpa
A worker stacks bags of cement at Heidelberg Cement's main factory in Leimen, in southwest Germany.
  • Why it matters

    Why it matters

    After years of restructuring, HeidelbergCement has emerged from austerity to gain ground once again on world leader LafargeHolcim.

  • Facts

    Facts

    • HeidelbergCement boosted revenue by 7 percent to €13.5 billion in 2015 and net profits by two-thirds to €800 million.
    • The cement maker’s stock jumped 30 percent and dividends nearly doubled to €1.30 per share last year.
    • In 2007, Heidelberg bought the British Hanson Group, taking on substantial debt as the financial crisis was escalating. The poorly timed purchase weighed on the cement maker’s results for years.
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  • Audio

    Audio

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HeidelbergCement has come a long way since the financial crisis. Germany’s largest cement maker has slashed debt, boosted income and is ready again to go on the offensive.

Buoyed by business in the United States and Europe, HeidelbergCement increased its revenue by 7 percent to €13.5 billion ($15.3 billion) in 2015 and generated a net profit of €800 million, a gain of two-thirds over the previous year.

The cement maker’s stock value shot up by 30 percent during the year, 20 percent more than the average gain by other companies in Germany’s blue-chip DAX Index. And shareholders saw their dividends nearly double from 75 cents to €1.30 per share.

Though the €244 million in dividends paid to shareholders in 2015 didn’t top Heidelberg’s interest payments to creditors, the gap was substantially reduced.

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