LafargeHolcim first-quarter sales, core profit better than expected

ZURICH — LafargeHolcim beat expectations for sales and core profit in the first quarter, it said on Wednesday, a bittersweet performance for the cement and building materials company as it begins a search for a new chief executive.

The world’s largest cement maker is looking for a new CEO to replace Eric Olsen, who is quitting in July after the company acknowledged making payments to armed groups to keep its factory running in war- torn Syria.

LafargeHolcim posted adjusted operating profit before interest tax and amortization of 801 million Swiss francs ($808.11 million), beating forecasts of 783 million francs in a Reuters poll.

Sales fell 7.1% to 5.63 billion francs, partly reflecting the sale of businesses including operations in Chile and Vietnam during 2016. The figure beat forecasts of 5.52 billion francs.

The company said the results enabled it keep its guidance for 2017 and 2018. For this year it is aiming for double-digit like-for-like growth in adjusted Operating EBITDA over 2016, and recurring earnings per share growth of more than 20%.

Zurich-based LafargeHolcim, created by a merger of France’s Lafarge and Switzerland’s Holcim in 2015, has also seen a change in chairman and chief financial officer in the last 18 months, while several members of its executive committee are also relatively recent appointments. —