Lafarge S.A.
Lafarge S.A.: Full year 2003 sales in line with expectations (Part 1 of 2)
Ad-hoc-announcement processed and transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Lafarge S.A.
Euronext: LG, NYSE: LR Paris, January 28, 2004
Full year 2003 sales in line with expectations
– Sales down 6.5% to EUR 13,658 million from EUR 14,610 million
– Underlying sales up : + 4.6%
– Full year operating income on ordinary activities expected to be stable
compared to 2002 before the impact of currency fluctuations
OVERVIEW
– Sales as at December 31, 2003 were down 6.5% to EUR 13,658 million from
EUR 14,610 million as at December 31, 2002
– Significant negative foreign exchange variations impacted sales by 9%
– Net scope effect on sales of -2.1% as a consequence of the divestments
realized in 2002 and 2003
– Underlying sales were up + 4.6% at the end of the year
– Fourth quarter underlying sales grew by 9.6% compared to a particularly poor
last quarter in 2002
– Catch up required to offset the very weak first quarter has been achieved
– Full year operating income on ordinary activities expected to be stable
before the impact of currency fluctuations
end of ad-hoc-announcement (c)DGAP 28.01.2004
Issuer’s information/explanatory remarks concerning this ad-hoc-announcement:
The sales report for each Division, excluding foreign exchange, scope effects,
and before inter divisional sales elimination is as follows:
CEMENT: +5.3%
Sales rose 5.3% for the full year 2003 (-3.4% in Quarter 1, +3.0% in Quarter 2,
+7.7% in Quarter 3 and +11.4% in Quarter 4.)
The second half of 2003 saw a good level of sales across the Division. The
fourth quarter was very strong at 11.4%, versus a particularly poor last
quarter in 2002, with the majority of countries recording growth in volumes and
many seeing pricing improvements. All geographical regions ended the year
recording growth in sales.
Despite a mixed picture in Western Europe an overall increase in sales was
recorded. Greece showed a strong level of growth in the run up to the Olympic
games coupled with a very buoyant residential housing market. Spain completed
2003 with solid growth in sales. After the severe price war impacting sales
throughout the year, prices stabilized in Germany in the last quarter albeit at
a low level. In France in a weak market the decline in volumes has been offset
by a good level of pricing. In the UK, sales were down for the year with weaker
volumes due to a slowdown in infrastructure spending and residential house
building and with prices seeing some pressure from imports.
Sales in North America continued to recover strongly in the fourth quarter
resulting in an overall increase in sales for the full year 2003. Strong gains
in sales were recorded across the United States in the last quarter. Prices
however remained under some pressure and declined for the year as a whole
particularly in the South and North East. In Canada demand was strong for the
year overall, with the Western provinces showing the most favorable trends. An
increase in prices was also achieved in Canada in the year.
Good levels of sales growth were recorded in all other geographical regions:
– In Central Europe strong growth was recorded in Romania.
– In Asia, favorable market conditions allowed strong growth in domestic sales
in South Korea, China and strong sales were also achieved in Malaysia after
the very poor previous year. Positive pricing trends in India helped to
offset lower volumes. In the Philippines a significant improvement in prices
was achieved in the fourth quarter confirming the end to the price war
experienced over the last twelve months.
– In Morocco, Jordan and across much of Africa, strong sales were reported.
– In Latin America, strong growth in sales were reported in Chile and positive
pricing trends were seen in Brazil and Venezuela.
AGGREGATES & CONCRETE: +3.8%
Sales rose 3.8% for the full year 2003 (-0.6% in Quarter 1, +3.3% in Quarter 2,
+6.5% in Quarter 3 and 4.1% in Quarter 4).
In Western Europe sales rose for the full year driven by the UK and Spain. In
the UK, sales growth came from good pricing in aggregates and from the asphalt
and paving activities, which benefited from major contracts in progress,
although there was a modest slowdown in the fourth quarter. Concrete sales in
the UK also showed a good level of growth throughout the year. Spain continues
to have record sales. In France, the overall aggregates and concrete market
declined in 2003 with the exception of the South East.
In North America, aggregates and concrete sales ended the year higher than 2002
as a result of strong volumes in the fourth quarter, which offset the impact of
poor weather conditions in the early part of the year and slower construction
activity in the United States. Price increases in aggregates and concrete were
achieved across Canada and in most markets in the United States.
ROOFING: +3.0%
Sales increased by 3.0% for the full year 2003 (-3.2% in Quarter 1, -0.6% in
Quarter 2, +5.5% in Quarter 3 and +9.1% in Quarter 4.)
Sales in Western Europe were marginally down for the full year for concrete
tiles, but rose for clay tiles. The fourth quarter saw strong sales in most
countries for both concrete and clay tiles. Good levels of sales growth were
recorded in the UK, Italy, Czech Republic and Hungary for all products. France
experienced a decline in sales of concrete tiles. In Germany concrete tile
sales were down for the year, but with the weak start to the year being
partially offset by favorable trends in the second half.
In the United States, sales continued to grow driven by a strong housing
market. In Asia strong sales were recorded in Malaysia and a positive
improvement was achieved in Japan.
Sales of roofing components increased by 3.9% now representing 17% of the
Division’s sales. Chimney sales rose by 6%.
GYPSUM: +6.6%
Sales rose 6.6% for the full year 2003 (+1.9% in Quarter 1, +1.6% in Quarter 2,
+9.5% in Quarter 3 and +14.1% in Quarter 4.)
Sales increased in all regions after a particularly strong fourth quarter.
In Western Europe, strong sales growth was recorded in the UK thanks to a very
buoyant wallboard market throughout the year. Good growth was seen in France
and an improvement was recorded in Germany despite a declining market.
In the USA, the strong end to the year confirmed the recovery seen in the third
quarter with good demand from residential construction and a further
improvement in prices in December, resulting in an annual average of 97USD per
thousand square feet versus 96USD in 2002.
In Asia, all markets showed sustained growth.
End of Part 1 of 2
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WKN: 850646; ISIN: FR0000120537; Index:
Listed: Amtlicher Handel in Düsseldorf und Frankfurt (General Standard);
Freiverkehr in Berlin-Bremen, Hamburg, München und Stuttgart
280832 Jän 04
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