Aggregate Industries UK reported volume declines in all segments. However, deliveries of aggregates and ready-mix concrete for large construction projects related to the 2012 London Olympics and to infrastructure projects in Scotland cushioned to some degree the market-induced drop in volumes. Sales of asphalt were supported by government stimulus packages in the road building sector.

In Northern France, Holcim France Benelux sold less cement for housing and commercial buildings. In the east of the country, sales were depressed by an increase in imports. Sales of aggregates also declined following the completion of the TGV Est high-speed rail line. As a result of acquisitions, ready-mix concrete volumes developed better than the market as a whole. While major projects softened the declining demand for construction materials in Belgium, ready-mix concrete prices continued to come under increasing pressure. The Group company in the Netherlands benefited from projects to expand the road network and coastal defenses.

Due to a rise in exports, Holcim Germany saw a slight increase in cement sales. Shipments were positively impacted by the start of construction work on the Nord Stream gas pipeline and the widening of the Bremen-Hamburg motorway to six lanes. Cement sales in Southern Germany were virtually stable due to road and infrastructure construction. The increase in sales of aggregates posted by Holcim Southern Germany was due to acquisitions. The purchase of additional ready-mix concrete facilities by the two German Group companies served to counter the negative market trend.

Holcim Switzerland's cement deliveries virtually matched the high level of the previous year and volumes of gravel, sand and ready-mix concrete were even higher. The Group company benefited from a continued solid level of orders for the residential construction sector, and various large commercial and motorway expansion projects. Despite delivering sizable orders of construction materials for the expansion of the Milan metro and inner-city housing projects, Holcim Italy suffered from the generally weak state of construction activity in the north of the country. Holcim Spain was only partly able to compensate for the precipitous decline in residential construction through increased deliveries in the infrastructure sector. Through the successful integration of Tarmac Iberia's aggregates and ready-mix concrete business, the Group company has strengthened its market position.

In Eastern and Southeastern Europe, the cement sales of all Group companies were severely impacted by the economic crisis. Domestic sales of Holcim Bulgaria and Holcim Slovakia suffered greatly, in part because of massive cement imports. Volumes decreased significantly in Hungary, the Czech Republic and Romania. Holcim Croatia and Holcim Serbia fared slightly better. The continuation of transport related infrastructure projects, some of which benefited from EU financial support, led to a certain degree of stabilization in certain places. For instance, progress on the construction of Prague's orbital motorway dampened the impact of the decline in volumes experienced by Holcim Czech Republic, while bridge building works on the River Sava boosted deliveries by Holcim Serbia.

After the massive decline in the first half of the year, sales at Russian-based Alpha Cement stabilized near the end of the year in and around Moscow. Export shipments to Western Kazakhstan also picked up. However, in comparison with 2008, the Group company posted a significant decline in cement sales and sales prices. In Azerbaijan, Garadagh Cement saw volumes and prices depressed by a combination of market factors and a rise in cement imports.

Consolidated delivery volumes in Group region Europe declined in 2009, albeit less sharply in the second half of the year. Cement shipments fell by 20.2 percent to 26.9 million tonnes. Sales of aggregates declined by 19.7 percent to 78.4 million tonnes, and ready-mix concrete sales contracted by 19 percent to 17 million cubic meters.

Operating EBITDA for Group region Europe decreased by 38.5 percent to CHF 1.2 billion as a result of market conditions and currency factors. The systematic broad-based implementation of cost-cutting measures increasingly eased the pressure on the income statement during the course of the year. Holcim Switzerland was the only Group company to post an improved result. All other companies reported a much weaker performance compared with the previous year. This was particularly true of Holcim Spain, the companies in Eastern and Southeastern Europe, and Alpha Cement. At -33.3 percent, internal operating EBITDA development was negative.

Within Europe, the construction sector is unlikely to make significant progress in the UK, Spain or Italy. The situation will also remain challenging in most of the countries of Eastern and Southeastern Europe, including Russia. In the other markets supplied by Holcim, a more stable recovery is emerging. At present it is difficult to assess the speed with which it will impact demand for construction materials and whether it is sustainable. The programs to cut costs and adjust capacity will be systematically pursued.

Source; Holcim