Holcim hurt by higher costs Holcim, the world's biggest cement maker by sales, saw profits plunge as higher costs for energy and raw materials, and lower demand in many mature markets, cut net group profits from SFr1.18bn in 2010 to just SFr275m ($307m) last year. The decline was largely expected after the group took big writedowns in its third-quarter results last November on activities in South Africa and, to a lesser extent, operations in parts of Europe and the US. Earnings at other top cement makers such as France's Lafarge and Mexico's Cemex have also been under severe pressure. The dividend will be slashed from SFr1.50 a share to SFr1. The profit fall came in spite of further rises in sales by volume of cement and aggregates, as new production came on line in many parts of the world. However, revenues declined by 4.2 per cent to SFr20.7bn, reflecting - as for many other Switzerland-based companies - the impact of the soaring Swiss franc. Holcim said sales in constant currencies would have increased by 7.5 per cent The group was cautiously optimistic for the current year, with demand expected to continue rising in Asia and Latin America - two of Holcim's strong points - as well as Russia. It also forecast a gradual improvement in the US, where demand has collapsed because of the steep fall in residential construction, lower commercial construction and contraction in much state-funded building. Holcim said it expected demand in Europe to remain broadly stable, provided there was no worsening in the eurozone debt crisis. The group predicted operating profits, which fell by 12.3 per cent to almost SFr4bn last year, should improve in 2012.