Out­look for Europe’s build­ing ma­te­ri­als ‘sta­ble’ as US and UK strengthen

Financial Mirror (Cyprus) - - FRONT PAGE -

The out­look for the Euro­pean build­ing ma­te­ri­als sec­tor will re­main sta­ble over the next 12 to 18 months as ro­bust sales vol­ume growth and stronger pric­ing in North Amer­ica, the UK and some emerg­ing mar­kets will sup­port an­tic­i­pated av­er­age EBITDA growth for the sec­tor of around 2%-4% for the pe­riod, says Moody’s In­vestors Ser­vice.

“Our out­look for the Euro­pean build­ing ma­te­ri­als sec­tor re­mains within our sta­ble range as solid growth in sales vol­umes of build­ing ma­te­ri­als, in­clud­ing ce­ment, ag­gre­gates and ready-mix con­crete, and stronger pric­ing in North Amer­ica, the UK and some emerg­ing mar­kets, such as Egypt un­der­pin steady EBITDA growth,” said Falk Frey, au­thor of the re­port. “Our forecast is to­wards the up­per end of the - 4% to +4% EBITDA growth range for a sta­ble out­look.”

Moody’s notes that while sales vol­umes and prices for build­ing ma­te­ri­als are pick­ing up pace in North Amer­ica, the sit­u­a­tion in Europe (excl. UK) and Asia re­mains mixed.

La­fargeHol­cim Ltd (Baa2 sta­ble), the world’s largest build­ing ma­te­ri­als pro­ducer, ex­pects ce­ment vol­umes to in­crease in all group re­gions in 2015 with the ex­cep­tion of Europe (excl. UK), the Mid­dle East and Africa.

While the North Amer­i­can mar­ket is strong, over­ca­pac­ity in In­done­sia will pres­sure mar­gins, par­tic­u­larly those of highly ex­posed Hei­del­bergCe­ment AG (Ba1 sta­ble), which gen­er­ated 19% of its con­sol­i­dated EBITDA from the re­gion in 2014. Peers such as La­fargeHol­cim, which gets less than 5% of group con­sol­i­dated pro forma rev­enue from In­done­sia, will be less af­fected.

Merg­ers and ac­qui­si­tions will con­tinue to re­shape the in­dus­try into 2016 and be­yond be­cause the ce­ment in­dus­try is still very frag­mented in most coun­tries, even af­ter the cre­ation of La­fargeHol­cim’s ear­lier this year.

ideas and sug­ges­tions for in­te­grated light­ing so­lu­tions.

The cam­paign cul­mi­nates this month with a big com­pe­ti­tion on the PGS Light­ing Elec­tri­cal Face­book page. Fans are asked to choose their favourite out of three light­ing fix­tures rec­om­mended by the three ex­perts, to en­ter the draw and win it.

The win­ner will be an­nounced on Oc­to­ber 31. Af­ter that, Thana­sis, Zam­bella and Christos will be at the win­ner’s dis­posal to sug­gest cor­rect place­ment and in­stal­la­tion of the gift based on their space.

PGS Elec­tri­cal Sup­plies Ltd has been work­ing in the field of elec­tri­cal sup­plies and light­ing equip­ment for over 30 years, with 11 stores around Cyprus and its Head­quar­ters in Par­al­imni. www.pgses.com

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