ZURICH, July 26 Reuters Holcim lowered its fullyear sales guidance on Friday, after a downturn in Europe and North America hit secondquarter sales at the cement and building materials maker.

In the first results under new Chief Executive Miljan Gutovic, sales during the second quarter fell 1.6 to 7.23 billion Swiss francs 8.21 billion, missing forecasts for 7.31 billion francs.

Downturns in North America, where building projects have been hit by unfavourable weather, and continued weak market conditions in Europe, were the main factors for the sales decline.

Sales in North America fell by 3.3, a negative for Holcim39;s plans to separate and list the business next year. Still, the North American spinoff was on track and expected to be completed in the first half of 2025, the Swiss company said.

Europe, Holcim39;s biggest market and the core of the remaining business after the spinoff is completed, saw sales fall 0.1 as economic worries and higher interest rates weighed on building projects.

Holcim revised down its fullyear guidance after the results, saying it now expected annual sales growth in local currencies in the low singledigit percentage range. That was a downgrade from previous guidance for an increase of more than 6.

But while sales fell, operating profits rose, as Holcim cut costs and benefited from higher margins at companies it bought.

During the period from April to June, recurring operating profit rose 8.2 to 1.68 billion Swiss francs 1.91 billion,…