Swiss cement maker Holcim posts fourth-quarter net profit of $251 million

Cement maker Holcim posts $251 million Q4 profit

GENEVA — Cement maker Holcim posted a disappointing fourth-quarter profit of 271 million Swiss francs ($251 million) on Wednesday, and said its outlook was unclear in Europe and North America amid uncertainty over stimulus programs.

Holcim’s earnings represented a more than six-fold increase from a profit of 43 million francs in the same quarter of 2008, when income was affected by the closing of factories, but failed to meet expectations.

Sales slipped 8 percent to 5.36 billion francs in the October-December period, although the Swiss company said it exceeded its cost-cutting forecast for last year by trimming 857 million francs in fixed costs.

Still, it expressed reservations about 2010.

“It is unclear how the building materials markets will perform in the current financial year,” the company said. “Uncertainty is at a high level, especially with regard to developments in Europe and North America. Much depends on whether the stimulus programs designed to expand infrastructure will indeed be implemented as proposed.

“Any revival in construction activity across a broad front will also be contingent upon stimuli from residential and commercial construction.”

Holcim said emerging markets were showing better health, with Asia “likely to continue growing” and Latin America and the Middle East showing stable business.

The board said it was confident in the company’s position in important markets, but declined to give a detailed forecast.

Zuercher Kantonalbank said the quarterly results failed to meet expectations and noted that the outlook “lacked specifics.”

Shares closed up 0.75 percent at 73.80 francs in Zurich.

For the full year, Holcim said net income fell 17 percent to 1.47 billion francs. Net sales fell 16 percent to 21.13 billion francs.