Heidelberg Materials warns of higher energy, tones down profit outlook
Heidelberg Materials' Financial Outlook and Market Challenges
Rising Energy Costs and Geopolitical Factors
FRANKFURT, July 30 (Reuters) - Heidelberg Materials expects the war in Iran to further drive up energy costs this year, the German cement maker said on Thursday, cutting the upper end of its 2026 profit outlook.
Impact of Inflation and Financing Costs
The group said inflation and high financing costs would likely continue to weigh on global residential construction, with high energy costs being a key driver.
CEO's Perspective on Market Recovery
Highlighting "an environment that remains geopolitically and economically very challenging", CEO Dominik von Achten still said there were first signs of a noticeable demand recovery in its core markets.
Revised Profit Outlook and Analyst Expectations
Updated Operating Profit Forecast
Heidelberg Materials said it now expects its operating profit, which it defines as the result from current operations, to come in at €3.40 billion euros to €3.65 billion euros ($3.89 billion to $4.18 billion), down from a previous range of €3.40 billion and €3.75 billion.
Analyst Poll and Year-on-Year Growth
According to a poll provided by the company, the group's operating profit is expected to come in at €3.51 billion, which would amount to a 4% increase year-on-year.
($1 = 0.8733 euros)
(Reporting by Christoph SteitzEditing by Ludwig Burger)
