Lafarge S.A.
Lafarge Reports Robust Growth of Full Year Sales To December 31, 2004 (1/2)
Corporate-news announcement processed and sent by DGAP.
The sender is solely responsible for the contents of this announcement.
——————————————————————————
Euronext: LG, NYSE: LR Paris, January 27, 2005
Lafarge Reports Robust Growth of Full Year Sales To December 31, 2004 (1/2)
– Up 5.7% to EUR 14,436 million
– Up 7.7% on a like for like basis (5.6% in Q4)
Sales were up 5.7% to EUR 14,436 million as at December 31, 2004 compared to
EUR 13,658 million in 2003. The net scope effect was favorable (+1.5%).
Foreign exchange variations impacted sales negatively by 3.5%.
“We are pleased to report robust sales growth in most of our operations
throughout the year, with healthy demand in the second half. This enables us
to confirm our expectation of a growth in our operating income on ordinary
activities for 2004 exceeding 10%, excluding currency fluctuations, in a
context of sharp rise in energy costs.
We are confident that most of our markets will continue to show favorable
trends, in both volumes and pricing, in 2005” said Bernard Kasriel, Chief
Executive Officer of the Group. The sales report for each Division, excluding
foreign exchange, scope effects, and before inter divisional sales elimination
is as follows:
CEMENT: +9.2%
Sales rose 9.2% in 2004 (+12.9% in Quarter 1, +10.7% in Quarter 2, +7.8% in
Quarter 3 and +6.7% in Quarter 4).
The Cement Division’s strong sales growth in 2004 has been driven by good
pricing trends in the context of sharply rising energy costs. Volume growth
overall has been solid, with strong growth in North America, the Eastern
Mediterranean, and on the African continent and a moderate rise in Asia.
In Western Europe sales growth in 2004 was largely driven by favorable pricing
trends France delivered the strongest sales growth in the region with
sustained volume growth throughout the year coupled with a favorable pricing
environment. In the UK, volumes were slightly down in a market that saw slower
construction growth and increased imports. Despite this environment, prices
held up well. Spain continued to record favorable trends in construction
spending allowing for good price increases. In Germany, the construction
market and cement volumes weakened once again, but this was more than offset
by the steady recovery in prices from the low level of the previous year. In
Greece, volumes slowed as expected following the completion of Olympics’
related building projects but pricing showed good levels of increase.
In North America, sales grew strongly during 2004
Favorable economic conditions supported strong levels of demand across markets
throughout the year, and we also benefited from more favorable weather
conditions at both the start and the end of the year. High levels of demand
particularly in the first half of the year, led to increased imports to
meet customer demand. Pricing trends continued to be positive, with successful
price increases achieved in the majority of markets during the first half. In
several US markets, a second price increase was also realized later in the
year.
Positive sales trends were recorded in all other regions of the world
In Central and Eastern Europe, sales grew strongly, driven by a buoyant
construction market in Romania.
In the Mediterranean Basin, sales were up sharply in Jordan and in Turkey
where the market grew strongly. In Morocco, volumes saw good growth, although
overall sales prices were negatively affected by the implementation of a
cement sales tax in 2004.
In Africa, high levels of growth were seen particularly in Nigeria and in
South Africa. In Latin America, the continued improvement in Venezuela offset
lower volumes and prices in Brazil. In Asia, demand was disappointing, with
the exception of India and Indonesia where demand was strong. In the
Philippines significant price increases were successfully implemented
throughout the year but volumes were slightly lower due to low levels of
government spending. Similarly, Malaysia suffered from lower public sector
spending especially in infrastructure, leading to lower selling prices. In
South Korea the construction industry was badly affected by government
initiatives to dampen property price inflation, which led to a sharp fall in
construction orders. The consequent decline in cement volumes increased
competition between domestic producers and importers, leading to price
weakness.
AGGREGATES & CONCRETE: +7.6%
Sales rose 7.6% in 2004 (+11.4% in Quarter 1, +6.0% in Quarter 2, +5.9% in
Quarter 3 and +8.4% in Quarter 4).
The Aggregates and Concrete Division delivered robust levels of sales growth
overall with strong volumes in both North America and France, coupled with
favorable pricing trends in most countries.
In Aggregates, sales rose 7.2% with a strong increase in North America.
Volumes rose with solid overall demand levels in the U.S. and strong sales in
Canada. Aggregate prices were also higher in most North American markets.
In Western Europe the situation was mixed. In France, sales growth varied
regionally, with stronger growth in Southern regions. In the UK, sales were
lower due to a decline in infrastructure spending, which strongly affected
Asphalt and Paving.
Aggregates prices continued to show favorable trends compared to 2003.
In Concrete, sales grew by 8.3%.
In North America, sales rose 7.3%, with overall positive pricing conditions.
Demand was particularly strong in West Canada and in the Eastern part of the
United States.
In France, sales grew strongly due to a combination of high levels of
residential housing in most regions and favorable pricing trends which
supported increased sales of special quality concretes. In the UK, concrete
sales were robust with improved pricing trends supported by increased volumes
of special quality products.
ROOFING: -1.0%
Sales were down by 1.0% in 2004 (+6.0% in Quarter 1, +6.0% in Quarter 2, -6.2%
in Quarter 3 and -7.5% in Quarter 4).
The Roofing Division’s decline in sales resulted from renewed weakness in
Germany in the second half after a more promising first half.
In Western Europe, sales of both concrete and clay tiles were down. The
renewed decline in sales in Germany offset the generally favorable trends seen
across the rest of Europe, particularly in France, Italy and Scandinavia.
Sales in the U.S. continued to be strong, driven by a buoyant housing market.
GYPSUM: +12.2%
Sales rose 12.2% in 2004 (+14.2% in Quarter 1, +13.2% in Quarter 2, +10.8% in
Quarter 3 and + 10.8% in Quarter 4).
The Gypsum Division’s strong sales growth in 2004 was driven by positive
trends in both volumes and prices in most markets.
In Western Europe, pricing was favorable in France but continued to be
negative in Germany. Volumes were driven by strong demand in the UK and by
strong fourth quarter sales in Germany ahead of 2005 price increases.
End of part 1 of 2
end of message, (c)DGAP 27.01.2005
——————————————————————————
WKN: 850646; ISIN: FR0000120537; Index:
Listed: Freiverkehr in Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, München
und Stuttgart
271025 Jän 05
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found