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News
Lafarge 2009 Q3 results


November 10, 2009
By Andy Bateman

November 10, 2009 – A press
release issued by Lafarge last Friday on the company’s third quarter 2009
results included highlights by business.

CEMENT

  • Sales were -12% year-to-date and -16% in the quarter due to lower
    volumes led by difficult market conditions in Europe and North
    America.
  •  Solid growth in key markets of the Middle East, Africa and Asia.
  •  Current operating income -20% year-to-date and -19% in the quarter,
    driven by lower volumes and negative foreign exchange impact.
  •  EBITDA margin remained strong at 34.8% in the third quarter, stable
    with last year despite sharp volume declines.
  •  Pricing remained solid overall with a limited number of markets
    showing price declines.
  •  Strong impact of the cost reduction program in all regions.

AGGREGATES & CONCRETE

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  • Sales -20% year-to-date and -26% in the quarter.
  •  Current operating income -70% year-to-date and -55% in the quarter,
    reflecting the large presence in developed markets where volumes declined
    strongly.
  •  Due to seasonality and exposure to mature markets, the declines in
    results more heavily impacted the Group in Q3 compared to previous
    quarters.
  •  Continuing development of value-added concrete products.
  •  Pricing improved overall across all product lines, with benefits
    seen from value-added products.
  •  Strong impact of the cost reduction program in all regions.

 

GYPSUM

  • Sales -13% year-to-date and -11% in the quarter.
  •  Current operating income improved slightly compared to last year.
  •  Volume declines resulting from a general slowdown of housing
    construction in mature markets partially mitigated by some price
    improvement.
  •  Strong impact of the cost reduction program in all regions.

 

 INVESTMENTS AND DIVESTMENTS

  •  Investments totalled €1,208 million year-to-date 2009, compared to
    €10,839 million in 2008.
    • Sustaining capital expenditure decreased by 64% to €199 million
      year-to-date.
    • Internal development capital expenditures declined by 20% to €926
      million year-to-date.
  •  Since January 1st, Lafarge has announced total divestments of
    nearly €800 million. Cash received from disposals amounted to €588
    million, compared to €342 million in 2008.

 (1 Euro = C$1.585 as at November 10, 2009)