HeidelbergCement’s long history—it was founded in 1873—almost ended during the financial crisis. For more than 100 years, the company had expanded in Germany. But in 1977, it began to branch out internationally by acquiring Vicat in France and Lehigh Cement in the US. At the end of the 1980s, it invested heavily in Central and Eastern Europe, then moved via acquisitions into Northern Europe, Africa, and Asia—piling on debt as it went. The acquisition spree culminated in 2007, when it paid GBP 9.5 billion for Hansen plc., a British company with 26,000 employees. HeidelbergCement had become one of the world’s largest producers of cements and aggregates, the two key raw materials for concrete.
Then the financial crisis unfolded. Worldwide revenues dropped from €14.2 billion in 2008 to €11.1 billion in 2009, and net profits from €1.92 billion to €168 million. Staggering under nearly €12 billion in net debt, the company laid off 15,000 people. Shares plunged from €120 in May 2007 to €20 in early 2009. Credit became scarce. On the verge of bankruptcy, the company underwent some financial re-engineering that included a capital increase and the issuance of 62.5 million new shares.
It survived. By December 2011, revenues had recovered to €12.9 billion. Net profit approached €1 billion. Net debt had been reduced to €7.8 billion. And shares have more than doubled since their 2009 lows.
Will Germany leave first ??
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