HEIDELBERG (dpa-AFX) - The building materials group Heidelberg Materials (formerly Heidelbergcement) is optimistic for the current year following record figures. "Even if the general conditions in the construction sector remain challenging, we expect sales and earnings growth in the current year," said CEO Dominik von Achten in Heidelberg on Thursday. On Wednesday evening, the company announced the buyback of its own shares with a total volume of up to 1.2 billion euros. The share price rose slightly in pre-market trading on Tradegate.

In the current year, the management expects demand in the construction sector to stabilize at a low level. However, inflation and persistently high financing costs are likely to continue to affect residential construction in particular. The cost of energy and raw materials is also likely to remain volatile. The focus will therefore remain on price adjustments and strict cost management.

In 2023, turnover climbed slightly year-on-year to just under 21.2 billion euros. Under its own steam - excluding acquisitions and disposals as well as currency effects - revenue increased by four percent. While sales volumes fell in all divisions compared to the previous year, the company was able to more than compensate for this through price increases.

Adjusted earnings before interest and taxes (EBIT) - the so-called RCO - increased by more than a fifth to over three billion euros. A savings program and slightly lower energy costs compared to the previous year contributed to this. The bottom line was a profit attributable to shareholders of around 1.9 billion euros after just under 1.6 billion euros in the previous year. The company's figures met analysts' expectations.

For the current year, the Executive Board expects adjusted earnings before interest and taxes of between 3.0 billion and 3.3 billion euros. Adjusted for currency effects as well as acquisitions and disposals, sales are again expected to increase compared to the previous year.

Heidelberg Materials is one of the largest building materials companies in the world. According to its own information, it is the market leader in Germany for cement and ready-mix concrete as well as sand and gravel. The company, which employs around 51,000 people, aims to produce climate-neutral concrete by 2050. To achieve this goal, Heidelberg Materials is expanding its recycling of building materials, including through acquisitions./mne/niw/stk