Q1 Sales CHF4.09b (4.16b est.), Operating Profit CHF295m (267 est.), Net CHF80m (110.5m est.). No new detail re Merger. Europe weather really helping the results, cement volumes were +20%. NA weather not favourable, but situation continues to improve. On the outlook, EU has bottomed with a slow recovery in sight, NA continues to improve, Asia Pac to grow at a slower pace. FX remains a drag. Cement volumes will increase but aggregates expected to be flat (LatAm dragging down). Expect organic growth in operating profit.
Needless to say, given where we are in the cycle and the expected synergies from the deal we are happy to remain long, although we see more upside elsewhere in the sector (i.e. Heidelberg, CRH and St Gobain).
