“Based on the market situations observed in the second quarter, we have updated our outlook on volumes for the full year 2009. While the rate of decline is expected to slow in the second half of the year as compared to the first half, annual cement volumes in Lafarge’s markets are expected to be down -4% to -8% overall, with significant differences between markets. The lower volumes will continue to place pressure on operating margins. Pricing is expected to remain overall in line with cost inflation and energy costs should ease in the second half of the year.

With regards to stimulus plans, government actions and the focus on infrastructure spending will have a positive impact on our markets. This year the Group has already seen strong benefits in China and expects most other stimulus plans to drive construction spending in 2010. Fundamentally, the global cement industry is supported by strong, long-term trends such as urbanization, demographic growth and infrastructure needs in developing economies.”

 
First-half key figures  

                        Sales down 12% to €7,991m

                        Current operating income down 30% to €1,131m

                        Emerging markets up 24% to €876m excluding Central and Eastern Europe

                        Free Cash flow up €746m to €875m

                        Net debt reduced by €1,496m from year end

                        Net income Group share declined to €370m

                        Net earnings per share declined to €1.51

(€1.00 = 1.574 CAD as at August 3, 2009).