FRANKFURT (Reuters) -Heidelberg Materials, the world’s second-largest cement maker, on Thursday posted third-quarter operating profit that came in slightly higher than expected, citing an “uncompromising focus” on cost cuts and price increases.
The quarterly result from current operations (RCO) came in at 1.18 billion euros ($1.38 billion), it said, up 5% year-on-year and higher than the 1.16 billion average estimate in a poll provided by the company.
Heidelberg Materials also narrowed the forecast range for RCO for the full year, now expecting 3.30 billion to 3.50 billion euros, while having previously expected 3.25 billion to 3.55 billion euros.
The company, whose shares have gained 74% year-to-date in part due to German efforts to upgrade its infrastructure, said it had made significant savings in the first nine months, adding a recently announced cost cutting initiative would achieve its annual target of at least 500 million euros by the end of 2026.
Larger peer Holcim also reported a small increase in third-quarter profit last month, boosted by a switch to more profitable products that helped offset currency headwinds.
($1 = 0.8575 euros)
(Reporting by Christoph Steitz, Editing by Miranda Murray)
