Holcim Q3 net profit flat at 673M Swiss francs

ZURICH - Swiss cement maker Holcim AG beat analyst predictions Wednesday by reporting a third-quarter net profit of 673 million Swiss francs ($668 million), equalling results for the same period last year.

Sales fell over 17 percent to 5.69 billion francs from 6.91 billion during the third quarter 2008. However, cost cuts helped drive cash flow up almost 40 percent to 1.39 billion francs from just under 1 billion last year.

The company also benefited from the sale of 61 million francs worth of carbon emissions certificates in Europe. Cement production is considered a major source of industrial carbon emissions.

Holcim said it expects conditions in Europe to remain challenging, while predicting a return to modest growth in North America in the second half of 2010 as the building materials market benefits from stimulus programs.

Conditions in emerging markets in Asia, Africa, the Middle East and Latin America look favorable, it said.

Holcim will exceed its target of cutting costs by 600 million francs in 2009, the company said.

It also predicted that the $1.62 billion purchase of Mexican rival Cemex SAB de CV's Australian operations in June will add to next year's earnings results.

Holcim shares rose 4.8 percent to 73.00 francs ($72.67) on the Zurich exchange.

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