PSGTY Pt Semen Indonesia Persero TBK (PK)

Updates with background, CEO and analyst quote.

 
   By Nathan Allen 
 

LafargeHolcim Ltd. (LHN.EB) on Wednesday set new financial targets for 2019 ahead of its capital-markets day.

The Swiss building-materials maker said it expects like-for-like net sales growth of between 3% and 5% in 2019. Growth in recurring earnings before interest, taxes, depreciation and amortization should be at least 5%.

LafargeHolcim said it wants to accelerate deleveraging and post a net debt to recurring Ebitda ratio of two-to-one by the end of 2019. At the end of 2018, net debt was 2.6 times Ebitda.

The company confirmed its adjusted 2018 guidance for sales to grow between 4% and 6% and for recurring Ebitda growth of between 3% and 5%.

In March the group launched a five-year strategic plan focused on boosting revenue and earnings by cutting costs and selling off at least 2 billion Swiss francs ($2.00 billion) in assets.

LafargeHolcim has since closed offices in Singapore and Miami and agreed to sell its majority stake in Holcim Indonesia (SMCB.JK) to Semen Indonesia (Persero) (SMGR.JK) for $1.75 billion, bringing the company within striking distance of completing its divestment program.

Chief Executive Jan Jenisch said the strategy was being executed at "full speed" and described the Indonesia sale as a major milestone that will help pay down debt.

Vontobel analyst Bernd Pomrehn said releasing the 2019 targets so early demonstrates LafargeHolcim's confidence in its ability to achieve its longer-term goals.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

November 28, 2018 02:42 ET (07:42 GMT)

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