Broad geographic diversification and cost-efficient operations. Good, stable profitability over the past five years. Strong free cash flow generation. Acquisitive growth strategy over the past few years, which has resulted in a deterioration of financial ratios and increased integration risk. Technical risks of operating new facilities are inherent in the group's ambitious expansion plans. The group's results were impacted at year-end 2001 and in the first half of 2002 by difficulties in its new cement plant in Portland, U.S. Unfavorable European market conditions. The German construction market is still in decline, and France and Belgium are experiencing slower-than-expected growth. The ratings on Switzerland-based cement producer Holcim Ltd. reflect the group's strong business position as the second-largest cement producer in the
