Finance
Strong franc takes bite out of cement maker Holcim's earnings
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Holcim's earnings were impacted by the strong Swiss Franc, reducing sales by 3.8%. Despite currency challenges, profit margins improved with low-carbon products.
By John Revill
ZURICH (Reuters) -Holcim became the latest Swiss company to see the strong Swiss franc take a bite out of its figures when the building materials maker reported on Thursday its first earnings since separating its North American business.
The Swiss cement and roofing products maker posted a drop in second-quarter sales in the three months to the end of June, as the rise of the safe-haven currency cancelled out local currency sales increases.
The franc strengthened against the euro, Mexican peso, and sterling after U.S. President Donald Trump's tariff announcements in April, reducing the level of sales abroad when translated back into Holcim's reporting currency.
The company's reported sales fell 3.8% in the quarter to 4.18 billion francs, as foreign exchange effects cut 267 million francs from its top line. With currency effects removed, sales would have been 2.4% higher.
Swiss construction chemicals maker Sika earlier this week reported a dip in first-half sales as the weakness of the dollar reversed an increase when measured in local currencies.
Although Holcim's profit rose, it was also held back by currency effects, which reduced operating profit by 81 million francs.
In its first set of results since separating its North American business, the building materials maker posted a 1.2% increase in recurring operating profit to 955 million francs, ahead of analyst forecasts.
Without translation effects, profits would have been 9.8% higher, as Holcim increased margins by selling more of its low-carbon cement and concrete and its recycled building materials.
Holcim shares were indicated 1.3% higher in premarket activity in Zurich.
Holcim separated its North American business into a separate entity, called Amrize, on June 23.
In its first guidance for 2025 as a standalone business, Holcim said it expected to increase its operating profit, when measured in local currency, by 6-10%.
It also guided for sales growth of 3-5% in local currencies.
($1 = 0.8131 Swiss francs)
(Reporting by John Revill. Editing by Miranda Murray and Mark Potter)
Currency hedging is a financial strategy used to protect against potential losses due to fluctuations in exchange rates. It involves using financial instruments to offset the risk of adverse price movements.
Foreign exchange, or forex, refers to the global marketplace for trading national currencies against one another. It is the largest financial market in the world, facilitating international trade and investment.
A financial crisis is a situation in which the value of financial institutions or assets drops significantly. It often leads to widespread economic instability, affecting markets and economies globally.
Economic growth is the increase in the production of goods and services in an economy over a period of time. It is typically measured by the rise in Gross Domestic Product (GDP).
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