LafargeHolcim Implements Action Plan Regarding Coronavirus Pandemic
March 27 2020 - 2:00AM
Dow Jones News
Regulatory News:
Since the beginning of the Coronavirus pandemic, LafargeHolcim
has taken the necessary measures to protect the health of its
employees, customers, suppliers and other stakeholders. We are
closely monitoring all markets according to the evolving situation
and to the guidance provided by the authorities in each
country.
While the construction sector and construction sites are
generally more resilient than other sectors, LafargeHolcim is now
experiencing disruptions in operations in various countries. In
China, the recovery of the construction sector has started and all
our plants outside of Hubei Province are operating. We forecast the
market demand to further recover and to supply 70% of last year's
volume in April 2020. In most of the other key markets, the
construction sector is disrupted and we forecast significant volume
declines in April and May. While demand in Q1 was solid overall,
LafargeHolcim expects a significant negative impact on its business
in Q2.
Currently the development of the Coronavirus pandemic and its
implications for the business are volatile and very different from
country to country. In order to mitigate the financial impact of
the situation, we have launched the action plan "HEALTH, COST &
CASH" for immediate execution in all countries. Targets are:
-- Reduction of CAPEX by at least CHF 400 million compared to 2019
-- Reduction in fixed cost by CHF 300 million in 2020
-- Realization of reduction of energy prices and full review of all third
party products and services
-- Reduction of Net Working Capital at least in line with level of activity
Based on the significantly strengthened balance sheet,
LafargeHolcim has strong liquidity of CHF 8 billion as of March 26,
2020.
Due to the impact of the Coronavirus pandemic, the guidance for
2020 is no longer valid. While the implementation of the action
plan "HEALTH, COST & CASH" is in full execution, the dynamic,
volatile development of the Coronavirus pandemic makes it currently
no longer possible to fully evaluate its impact on the performance
of LafargeHolcim in 2020. We will provide a more comprehensive
business update at the first quarter 2020 results release on April
30, 2020.
In its meeting on March 26, 2020, the Board of Directors
confirmed the date of the Annual General Assembly and the proposal
for the payment of a cash dividend.
The Annual General Assembly will be held on May 12, 2020, as
planned. In accordance with the requirements as defined in the
Ordinance of the Federal Council of Switzerland, dated March 16,
2020, to protect the public, shareholders will not be allowed to
attend the event in person. Shareholders are requested to vote
their shares in advance by giving a power of attorney to the
independent proxy.
For the 2019 financial year, the Board of Directors confirms the
proposal of a cash dividend of CHF 2.00 per registered share,
subject to approval by the shareholders at the Annual General
Meeting on May 12, 2020. The dividend will be fully paid out of the
foreign capital contribution reserve and is not subject to Swiss
withholding tax.
About LafargeHolcim
LafargeHolcim is the global leader in building materials and
solutions and active in four business segments: Cement, Aggregates,
Ready-Mix Concrete and Solutions & Products. Its ambition is to
lead the industry in reducing carbon emissions and shifting towards
low-carbon construction. With the strongest R&D organization in
the industry, the company seeks to constantly introduce and promote
high-quality and sustainable building materials and solutions to
its customers worldwide - whether individual homebuilders or
developers of major infrastructure projects. LafargeHolcim employs
over 70,000 employees in over 70 countries and has a portfolio that
is equally balanced between developing and mature markets.
More information is available on www.lafargeholcim.com
Important disclaimer - forward-looking statements:
This document contains forward-looking statements. Such
forward-looking statements do not constitute forecasts regarding
results or any other performance indicator, but rather trends or
targets, as the case may be, including with respect to plans,
initiatives, events, products, solutions and services, their
development and potential. Although LafargeHolcim believes that the
expectations reflected in such forward-looking statements are based
on reasonable assumptions as at the time of publishing this
document, investors are cautioned that these statements are not
guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a
number of risks and uncertainties, many of which are difficult to
predict and generally beyond the control of LafargeHolcim,
including but not limited to the risks described in the
LafargeHolcim's annual report available on its website
(www.lafargeholcim.com) and uncertainties related to the market
conditions and the implementation of our plans. Accordingly, we
caution you against relying on forward-looking statements.
LafargeHolcim does not undertake to provide updates of these
forward-looking statements.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200326005799/en/
CONTACT: Media Relations: media@lafargeholcim.com
+41 (0) 58 858 87 10
Investor Relations: investor.relations@lafargeholcim.com
+41 (0) 58 858 87 87
SOURCE: LafargeHolcim
Copyright Business Wire 2020
(END) Dow Jones Newswires
March 27, 2020 01:45 ET (05:45 GMT)
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