Zurich (Reuters) - Swiss cement group Holcim has raised its forecast for the year after a strong first quarter.

It is now targeting organic sales growth of six percent in 2023, Holcim announced on Friday. Adjusted operating profit (recurring EBIT) is expected to increase more strongly by over ten percent. "We are confident that we will close the full year well given the strong underlying trends in all our business areas," said Holcim CEO Jan Jenisch. Jenisch has no fears that rising interest rates could dampen demand. There are major infrastructure projects, particularly in North and Latin America.

Previously, the Heidelberg Materials competitor had forecast organic sales growth of three to five percent and a stronger increase in recurring EBIT for the current year. In the first quarter, sales revenue increased by eight percent to 5.73 billion Swiss francs and recurring EBIT by twelve percent to 493 million Swiss francs. Holcim thus performed better than expected by analysts, who, according to a company survey, had on average expected sales of 5.66 billion francs and recurring EBIT of 464 million francs.

However, the forecast increase did not provide a boost on the stock market. Holcim shares slipped more than two percent into the red. With an increase in value of 23 percent in the current year, the company is one of the Swiss blue chips with the best share price performance. "Raising the outlook is positive, especially because it comes so early in the year," explained analyst Marcus Bäumer from Luzerner Kantonalbank.

Jenisch, who is pursuing an acquisition strategy, intends to make purchases in the future, particularly in the USA. Company takeovers should contribute two to three percent to sales growth each year, said the manager. In the current year, more than 30 acquisitions are feasible. Twelve companies have been acquired so far.

Jenisch, who is to take over as Chairman of the Board of Directors at the Annual General Meeting in May, wants to find a successor for himself within the company. "You can assume that we will have an internal candidate for this position," said Jenisch. He is aiming for an internal successor, someone who is familiar with Holcim. A new Chief Executive Officer (CEO) should be appointed at the beginning of next year. The Group announced Jenisch's move to the top of the Board of Directors in February. The manager will continue to lead the company operationally for the time being.

(Report by Paul Arnold and John Revill, edited by Ralf Banser. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)