News
Lafarge 2009 Q3 results

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

• 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)