HeidelbergCement Posts EUR52M Profit In Romania, Margin Kept At 25%

05.13.2011 ZF English

The turnover of Germany's HeidelbergCement group in Romania fell in 2010 by almost 11%, to 900 million lei (around EUR214 million), while the net income fell by some 7% to RON219 million (EUR52 million), according to the data released by the company.

The group's net profit margin remained high, at almost 25%, considering the construction sector was badly hurt by the crisis and the cement market, HeidelbergCement's main business, had dropped by 35%-40% over the last two years, according to ZF calculations.

Companies operating on the cement market were among the most profitable in Romania ahead of the crisis as well, boasting profit margins of 30%-45%, according to ZF data. While the level has diminished somewhat, the industry is still generating solid profits.

Carpatcement Holding, the group's most important company domestically, last year made the biggest impact on the German group's Romanian business. Carpatcement turnover fell by 12% to RON774 million (EUR183.9 million). EUR1=RON4.0997)