HeidelbergCement's (HEI) ability to outperform Germany's Dax 30 index has been demonstrated by the 35 per cent rise in its share price since our tip, while the Dax has risen 17 per cent, putting Heidelberg's value investors comfortably ahead of the index trackers. The question now is whether to lock in profits before the company's 2012 results on March 14.
Yet those results should contain little that's new following a detailed update from the company in late February. Chiefly, cost savings were much higher than expected at €384m (£317m), almost double the target, along with the highest profit margins on cement production in three years - almost 25 per cent. Taken together, these factors mean Heidelberg is likely to hit analysts' forecasts for pre-tax profits of €920m, giving EPS of 271¢.
