Lafarge sales rise in second quarter but outlook is flat
30 July 2010
Lafarge reported second quarter sales of € 4,4 billion, up +1,7% on the € 4,3 billion recorded last year.
Net profit fell -11% to € 306 million, down from € 344 million 12 months ago, although this figure excludes any fines associated with the long-running German cement cartel case or gains on the 2010 disposal of Cimpor shares.
Chairman and CEO Bruno Lafont said, "In a second quarter marked by a mixed economic environment, with volume decreases in a number of markets and early signs of improvement in some developed countries, Lafarge achieved a solid operational performance and firm margins.
"Divestments of non-strategic assets continued and we should exceed € 500 million in 2010, going beyond our initial target," he said.
Based on demand trends seen through the second quarter, Lafarge has reduced its growth estimates and expects cement demand to be between -1% and +3% of the levels reported for 2009.
Mr Lafont said, "We have lowered our full year volume estimates for Western and Eastern Europe and increased them for North America. At the same time we expect continued growth in Asia, Latin America, the Middle East and Africa."
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