Heidelberg raises outlook on North America boost, shares hit record high
Adds share milestone in paragraph 1, 4, adds analyst comment
BERLIN, Nov 7 (Reuters) -Heidelberg Materials HEIG.DE, the world's second-largest listed cement maker, on Thursday raised its 2024 outlook due to a strong performance in North America and efficiency measures across key markets, sending its shares to a record high.
The German building materials company now expects the result from current operations for the 2024 financial year to be between 3.1 billion and 3.3 billion euros ($3.3-3.6 billion) , narrowing a previously forecast range of between 3.0 billion and 3.3 billion euros.
"Our persistently strong performance in North America combined with a continued focus on cost management across key markets helped offset volume headwinds and contributed to further increasing our operational result and improving our profitability," said managing board chairman Dominik von Achten.
Shares in the company rose as much as 8.6% on the news to a record high, with analysts at Stifel saying: "There is good value on offer and the stock could catch up further with some of its peers that have re-rated somewhat already."
An initiative of optimisation and efficiency measures dubbed the "Transformation Accelerator" is expected to lead to a yearly result contribution of 500 million euros by the end of 2026, Heidelberg Materials said.
A particular focus area will be the optimisation of the clinker and cement plant networkin Western Europe, Heidelberg Materials said, adding this would include some closures.
The company reported a 3% increase in its result from continuing operations during the third quarter to 1.124 billion euros, adjusted for scope and currency effects.
($1 = 0.9308 euros)
Writing by Rachel More and Christoph Steitz; Editing by Miranda Murray and Chizu Nomiyama
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