LafargeHolcim relying on price hikes

Bymc2008

Updated Tue, 22 Mar 2016 09:48:44 GMT

Reuters are reporting that LafargeHolcim intends to boost prices and curb capital spending to shore up 2016 profits as the company attempts to squeeze more savings from last year's merger.

The company reported Q4 loss of 2.86 billion Swiss francs (£2 billion) after taking 3 billion francs in impairment and other charges to close a year in which it was formed by merger.

The company intends to keep capital expenditure below 2.0 billion Swiss francs, down from 2.6 billion in 2015, as it cuts operations.

LafargeHolcim expects to match the cement market's 2 - 4% expansion this year, as markets in China and Brazil remain problematic.

Its shares gave up initial gains to drop 1.8%, bringing the decline this year to around 20%.

However, it the company maintained the 1.50 franc per share dividend announced in November and said it was on track to hit its 2018 financial targets.