ZURICH: Cement-maker Holcim will book a 775 million Swiss franc ($819 million) charge in the fourth quarter due to a slump in demand for the construction material in Europe and the United States and a restructuring at its South African business.
Holcim said on Monday its ability to pay a dividend for 2011 had not changed and its board will decide on the size of the payout in February.
Since 2008, demand for cement in Spain has plummeted by more than half, fallen by about a third in parts of Eastern Europe and by 45 percent in the United States, Holcim said.
"As demand for construction materials will only slowly recover, and production capacity utilization rates will remain unsatisfactory, property, plant and equipment, and goodwill impairment amounting to CHF 360 million will be charged in the fourth quarter 2011," the company said.
Holcim is also writing off investments of 415 million francs in the fourth quarter due to restructuring at AfriSam, formerly Holcim South Africa, in which it now holds a 15 percent stake.
Holcim competes with France's Lafarge and Mexico's Cemex.
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