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Holcim profits drive leadership program

The executive committee and management of the Holcim Group of companies have started the Holcim Leadership Journey, with specific measures to increase operating profit by at least CHF1.5 billion ($A1.5 billion) by the end of 2014.

?After intensive discussions at senior management level and based on close collaboration with the Group companies, I am confident that we will achieve these targets,? said Holcim CEO Bernard Fontana.

The Holcim Leadership Journey will focus on the following areas:
    ?    Customer excellence by improving customer focus and innovation.
    ?    Cost leadership in energy, raw materials, logistics, procurement and fixed costs.
    ?    Further reduction of net working capital and selective divestments.
    ?    Reduction of the investment cost per tonne of new cement capacity.
    ?    Further development and generation of talents and leaders as well as strengthening of the social dialogue with all stakeholders.

Holcim said that the cost of implementing the program is likely to be less than CHF200 million ($212 million).

Meanwhile, just ahead of the program launch, Holcim reported consolidated net sales increased by 2.2 per cent to CHF4.8 billion ($5 billion) during the first quarter of 2012, compared with the same period of 2011, while operating EBITDA was almost stable with a 1.1 per cent decrease to CHF745 million ($789 million).

During the quarter, consolidated cement sales increased by 6.2 per cent, deliveries of aggregates were down 7.8 per cent and volumes of ready-mixed concrete decreased by 0.3 per cent while asphalt sales declined by 18.4 per cent.

Sources: Holcim, Agg-net

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