LAFARGE (Euronext: LG; NYSE: LR) announced that sales for the first six months of 2001 amounted to 5,578 M€, marginally down on the same period in 2000, by 1.4% (-78 M€).
The underlying activity excluding foreign exchange and scope effects grew by 1.9% for the first six months. (-1.2% in quarter 1 and +4.2% in quarter 2).
The Cement Division's sales grew by 6% (1.8% in quarter 1 and 9.2% in quarter 2). In Europe, excellent conditions continued to be experienced in Spain, France was stable in a favourable pricing environment but Germany remained weak. North America showed a favourable performance in the second quarter where demand held up well.
In general, the developing countries performed well, the main exceptions being Turkey and Egypt where prices remain under pressure.
- Aggregates & Concrete:
The Aggregates & Concrete Division achieved sales growth of 3.2% (0.3% in quarter 1 and 5.1% in quarter 2). The Division recorded in particular, a good level of activity in North America.
The Roofing division's sales declined by 8.6% (-12.7% in quarter 1 and -5.4% in quarter 2). The decline of the German construction market continues to impact heavily on the performance of the Division
The Gypsum Division showed a decline of 4.0% (-2.0% in quarter 1 and -5.8% in quarter 2). Prices continued to decline in the United States during the second quarter with prices tumbling further to average $ 63 per unit for the year to date. Elsewhere the Division saw sales grow by 6%.
Scope of -4.3%.
Divestments resulted in a sales reduction of 577 M€, principally being the sale of the majority of the Specialty Product Division.
Recent developments generated new sales of 305 M€. The main contributors were the Warren business in aggregates and asphalt in Canada, Raymond Cement in India and the impact of the new wallboard plants in the United States.
Positive foreign exchange impact of 1.0%.
The favourable appreciation of the USD of 1.5% has been offset to some extent by the pressure on currencies in the developing world. (i.e. Brazilian real, South African rand)
30 June 2001
30 June 2000
|Variation||Of which activity|
|Aggregates & Concrete||1,952||1,682||+16%||+3.2%|
(These figures do not include Blue Circle which in consolidated with effect from 11th July 2001).
"After exceptional sales achieved in the first quarter 2000 due to the very mild winter conditions, the first quarter 2001 was effected by harsher weather. The second quarter returned to a more usual trend showing further growth. The Cement and Aggregates & Concrete Divisions have continued to grow in a favourable pricing environment".
Lafarge is the worldwide leader in building materials with 85 000 employees in 75 countries. Lafarge holds top-ranking positions in each of its four Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum.