North America

In the third quarter, the North America region delivered a 450 basis point improvement in margins (Adjusted Operating EBITDA margin) through successful implementation of pricing strategy, synergies and cost reduction measures. Adjusted Operating EBITDA on a like-for-like basis for Q3 was up 9.2 percent despite softened demand.

The US reported a strong performance despite lower cement volumes impacted by delays to infrastructure projects and the effect of unfavorable weather conditions for construction. Ongoing cost measures had a positive effect on margins and Adjusted Operating EBITDA. In addition to the beneficial impact of lower energy prices, which persisted into the quarter, the US succeeded in accelerating the capture of synergies and cost savings in areas such as distribution and plant networks.

Adjusted Operating EBITDA on a like-for-like basis was down for both Eastern and Western Canada in the quarter. Western Canada continued to be negatively affected by lower investment activity as a result of the ongoing oil price-driven economic downturn in Alberta and Saskatchewan.

North America – Pro forma information

 

 

July–Sept
2016

July–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

6.0

7.0

–14.6

–6.0

Sales of aggregates

million t

36.7

38.8

–5.3

–5.3

Sales of ready-mix concrete

million m3

2.6

3.0

–11.4

–11.4

Net sales

million CHF

1,801

1,892

–4.8

–6.0

Operating EBITDA

million CHF

565

507

+11.5

+10.1

Operating EBITDA adjusted1

million CHF

574

519

+10.6

+9.2

Operating EBITDA margin

%

31.4

26.8

 

 

Operating EBITDA margin adjusted1

%

31.9

27.4

 

 

Cash flow from operating activities

million CHF

354

353

+0.3

–1.5

Operating Free Cash Flow2

million CHF

200

209

–4.1

–5.7

North America – Pro forma information

 

 

Jan–Sept
2016

Jan–Sept
2015

±%

±%
like-for-like

1

Excluding merger, restructuring and other one-offs.

2

Cash flow from operating activities less net maintenance and expansion capex.

Sales of cement

million t

14.7

16.0

–7.9

+0.9

Sales of aggregates

million t

82.7

84.6

–2.3

–2.3

Sales of ready-mix concrete

million m3

6.6

7.0

–5.9

–5.7

Net sales

million CHF

4,204

4,179

+0.6

–0.6

Operating EBITDA

million CHF

955

839

+13.9

+12.0

Operating EBITDA adjusted1

million CHF

970

857

+13.2

+11.4

Operating EBITDA margin

%

22.7

20.1

 

 

Operating EBITDA margin adjusted1

%

23.1

20.5

 

 

Cash flow from operating activities

million CHF

171

97

+76.6

+82.3

Operating Free Cash Flow2

million CHF

(269)

(305)

+11.8

+13.6

Beat Hess, Chairman of the Board of Directors (signature)

Beat Hess
Chairman of the Board of Directors

Eric Olsen, Chief Executive Officer (signature)

Eric Olsen
Chief Executive Officer

November 4, 2016