Heidelberg Materials expects rising energy costs due to Iran war
Impact of Middle East Conflict on Heidelberg Materials' Financial Outlook
May 6 (Reuters) - Heidelberg Materials, the world's second-largest cement maker, said on Wednesday it expected rising energy costs as a result of the conflict in the Middle East, as it reported first-quarter results in line with expectations and confirmed its outlook for the year.
Energy Costs and Company Response
The company, whose business is among the energy-intense industries, said additional costs were to be partially compensated for by surcharges and price adjustments.
Cost Discipline and Price Adjustments
It said its focus on cost discipline and price adjustments helped it partially offset declining volumes in the first quarter.
Financial Performance
Quarterly Revenue
It reported quarterly revenue of 4.54 billion euros ($5.33 billion), down from 4.72 billion in the year-earlier period but in line with analysts' expectations in a company-provided poll.
Market Demand Outlook
CEO Statement on Market Recovery
"A significant recovery in demand is already visible in many markets at the start of the second quarter," CEO Dominik von Achten said in a statement, adding that the company expected demand in its core markets to further stabilise during the year.
Additional Information
($1 = 0.8525 euros)
(Reporting by Christoph Steitz; Writing by Linda Pasquini; Editing by Muralikumar Anantharaman and Subhranshu Sahu)
