Holcim to take SFr510m charge Holcim will take charges totalling SFr510m ($555m) against its fourth-quarter earnings, as the Swiss cement maker presses ahead with its overhaul of its troublesome European operations. Cement makers have been struggling with overcapacity in Europe, where construction levels have plummeted since the onset of the financial crisis, and in May, Holcim's new chief executive, Bernard Fontana, launched a cost-cutting drive aimed at boosting annual operating profits SFr1.5bn by 2014. Holcim said on Monday that the cash costs of this programme would be SFr100m in the fourth quarter, and that it would also write down the value of properties, plant and equipment by SFr410m. The world's largest cement maker by sales said that its "group region Europe continues to adjust production capacity in all segments" and added that it had begun a consultation process over the job losses that could result, although it did not disclose how many employees could be affected. The overhaul follows on from a leadership shake-up in August, as part of which Holcim consolidated its European operations and placed them under the control of Roland Köhler, a member of the company's executive committee. "Measures evaluated and already initiated will lead to annual cost savings of at least SFr120m, a better utilisation rate of the capacity and a more efficient allocation of the capital expenditure," Holcim said on Monday. Holcim added that the moves would not prevent it from paying a dividend this year. "The group's payout potential for the 2012 financial year [pre-write-offs] remains," the company said. The Swiss group will announce its full-year profits on February 27. In the nine months to September 30, the group achieved sales of SFr16.2bn, up 4.8 per cent on the preceding year. Shares in Holcim were down 0.15 per cent at SFr65.60 in early morning trading in Zürich.