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