Holcim to Cut Cost for a Profit Raise

Holcim, the world’s second-largest cement maker facing surging energy costs and weak demand in Europe, plans to cut costs and improve efficiency to boost profits by at least 1.5 billion Swiss francs (Dh5.9 billion, $1.62 billion) by the end of 2014.

The Swiss company’s cost-cutting drive, which could also include some asset sales, follows a tough first quarter for the world’s big cement-makers, which are battling soaring fuel costs and sluggish European markets.

Holcim and rivals Lafarge, HeidelbergCement and Mexico’s Cemex have been trying to offset the surge in electricity, coal and oil costs through higher prices for their products. Holcim is now taking action on costs too.