HeidelbergCement increases Italcementi target

Bymc2008

Updated Thu, 18 Feb 2016 17:36:55 GMT

According to a Bloomberg report, after identifying new areas to reduce costs, HeidelbergCement AG has raised its savings forecast from last year’s purchase of Italcementi SpA for the second time in three months.

The target was increased by 33% to €400 million, three months after it was raised by 50% to €300 million.

HeidelbergCement AG agreed to buy Bergamo, Italy-based Italcementi for €3.7 billion in July.

Regulatory approvals have been granted in India, Canada, Morocco and Australia, with talks in Europe and the US ongoing.

Fourth-quarter operating income prior to depreciation rose 11% to €696 million. Revenue rose 2% to €3.4 billion.

The cement maker said the US and U.K. markets are showing signs of continued recovery, while Europe is benefiting from the weak oil price.