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Holcim sees strong growth continuing in 2007-paper

Sat Jan 6, 2007 8:54am EST

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ZURICH, Jan 6 (Reuters) - Holcim (HOLN.VX), the world's second-largest cement maker, saw record growth carry over into the final quarter of 2006 and looks set to continue strong expansion in 2007, CEO Markus Akermann was quoted as saying on Saturday.

Akermann also told business newspaper Finanz und Wirtshaft he was confident Holcim could fund its ambitious expansion programme from its own resources without needing a capital increase.

"We achieved a record result in the first nine months. In the fourth quarter the positive trend continued, we were able to profit from favourable weather conditions. We have all together achieved a good result," Akermann told Finanz und Wirtschaft.

Turning his attention to 2007, Akermann said: "In Asia, Latin America and also eastern Europe, pronounced growth will continue. I expect a solid development in the mature industrial countries.

"I am intent on the growth trend at Holcim continuing."

Holcim was not considering a capital increase to fund growth. "A capital increase is not being debated," Akermann said.

"Our priority is in the financing of our growth without a capital increase."

The cement industry was consolidating and Holcim wanted to be an active player in the process.

"We want to take part in this process and seize appropriate opportunities for good acquisitions," Akermann told the newspaper.

He said it was more important for Holcim to strive to be the most efficient cement maker rather than the world's largest.

"That (being market leader) is not decisive for me. It is more important that we are qualitatively the most attractive business in the sector."

Holcim in November reported a 42.5 percent rise in third quarter net profit, raising its outlook for 2006 and setting ambitious mid-term targets for all its divisions.

Holcim competes globally with larger French cement maker Lafarge (LAFP.PA) and Mexico's Cemex (CX.N) (CMXCPO.MX).



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