CLSA Holcim reported weaker than expected 2Q10 result, with 1H10 profit at 36% of our FY10CL, and consensus

The Net profit declined 11% QoQ, although revenue increased 8% QoQ. Gross margin was stable at 37%, however, EBIT margin came lower than expected to 21% in 2Q10. The company booked a 19% increase in operating expenses, notably the G&A expenses.
Sales volume wise, 1H10 domestic cement sales was in line with expectation (46% of FY10E of 5.8m tonnes). Seasonally, cement sales in 1H was 42-45% of FY.