Holcim shrugs off interest rate fears to raise guidance

Holcim AG (HOLN.S) shrugged off concerns about rising interest rates dampening building industry demand as the world’s biggest cement maker raised its full-year guidance after beating first-quarter forecasts.

U.S. construction spending declined in February, data showed this month, as the housing market bore the brunt of aggressive interest rate hikes by the Federal Reserve in its battle against high inflation.

Other countries such as Britain have also seen downturns this year, as higher interest rates weigh on building projects.

But Holcim was undeterred, raising its outlook after what it called a strong start to the year.

The Swiss company now expects its annual sales to increase by more than 6%, up from a previous forecast of 3%-5%, and said it expected its organic recurring operating profit to increase by more than 10%.

“With strong underlying trends across all our businesses, we are confident we will close the full year strong,” Chief Executive Jan Jenisch said.

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