Lafarge S.A.
Lafarge S.A.: First quarter 2005 sales (Page 1 of 2)
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Euronext: LG, NYSE: LR Paris, May 4, 2005
First quarter 2005 sales
Positive pricing trends in most markets drive sales up
· Sales rise 2.2% to EUR 2,945 million
· Sales rise 1.9% on a like for like basis
Sales were up 2.2% to EUR 2,945 million as at March 31, 2005 compared to first
quarter 2004 sales of EUR 2,881 million. The net scope effect was at 1.1%.
Foreign exchange variations impacted sales by -0.8%.
“The underlying favorable trends in many of our markets have allowed for
positive pricing. Volumes were held back this year compared to the first
quarter of 2004 due to harsher winter weather, but this is quite usual given
the seasonality of our business” said Jean Jacques Gauthier, Executive Vice
President, Finance, he added “this first quarter volume trend does not alter
our view for the year for which we expect overall favorable market
conditions.”
The sales report for each division, excluding foreign exchange, scope effects,
and before inter divisional sales elimination is as follows:
CEMENT: +2.1%
In Western Europe price increases were realized in many countries and in
particular in Germany and the UK. However sales were down due to lower volumes
sold, essentially being the result of the winter weather across the region,
which was more harsh than in the first quarter of 2004 as well as fewer
working days. Greece continued to slow as expected compared to the high levels
of demand in the run up to the Olympic Games.
North American sales have continued to strengthen in a favorable demand
environment. Higher volumes and prices were seen across much of the United
States, where strong demand levels were recorded in markets not impacted by
unfavorable weather. Average prices increased in both the United States and
Canada. The full impact of these price increases will continue throughout the
year and a further price increase has been announced for the United States
from July.
Despite further strong growth in Romania, sales in Eastern Europe were down,
due to lower volumes in Poland and Russia.
Strong sales growth was recorded in the Mediterranean Basin where Jordan’s
strong construction sector continued its momentum. In Egypt prices continued
to increase.
In Africa, sales grew strongly with favorable pricing trends in most countries
and strong volumes in Kenya.
In Asia, India continued to enjoy strong volume growth and whilst prices
continued to rise in the Philippines compared to 2004, slower construction led
to reduced volumes. In Malaysia prices suffered in a difficult competitive
environment, and in South Korea the depressed construction market drove
volumes and prices lower.
In Latin America, Brazil experienced lower prices due to keen competition and
some decline in volumes. Venezuela continued to show good improvement and
Chile remained sound.
AGGREGATES & CONCRETE: +4.5%
In Aggregates, the first quarter of 2005 continues to show positive trends in
many markets. Although Western European sales were down due to the poorer
winter weather than in 2004, good increases in prices were achieved offsetting
much of the volume decline. Good volume trends were seen in Aggregates across
much of North America together with favorable pricing. Other countries saw
generally strong levels of volume growth. Ready-mixed concrete volumes and
prices in Western Europe experienced favorable trends. Volumes were however
down in North America, largely due to the more difficult weather conditions
seen in Canada compared to 2004, nevertheless prices were up, reflecting good
pricing performance in all markets.
ROOFING: -9.1%
Much of the decline in sales comes from Germany, where volumes were
significantly lower due to a weaker market compared to the start of 2004. In
this environment, prices came under further pressure. Elsewhere in Western
Europe the bad winter weather affected volumes in many countries, but pricing
trends were favorable. Buoyant housing market conditions continued to drive
sales growth in the United States.
GYPSUM: +4.5%
The growth was largely driven by significantly higher prices in North America,
where volumes also continued to grow. Sales in Western Europe were flat as
the 2005 winter weather conditions impacted volumes, however, there were
favorable pricing trends. In Asia sales declined as a result of weaker volumes
in South Korea coupled with some price competition, and in Australia the
market continued to soften.
NEGATIVE FOREIGN EXCHANGE IMPACT OF -0.8% AMOUNTING TO EUR 21 MILLION
The negative foreign currency translation impact on sales was generated
essentially from the decline in the US Dollar (- EUR19 million) versus the
euro.
SCOPE CHANGES OF +1.1% AMOUNTING TO EUR 32 MILLION Sales from acquisitions
amounted to a positive scope effect of EUR 57 million largely due to the
acquisition of Cementos Selva Alegre in Ecuador in December 2004, to the
acquisition of Hupfer Holdings in France (May 2004) and to the acquisition of
the assets of The Concrete Company in the United States ( April 2004). The
reduction in sales due to negative scope effect totaled EUR 25 million.
End Page 1 of 2
End of announcement (c)DGAP 04.05.2005
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WKN: 850646; ISIN: FR0000120537; Index:
Listed: Freiverkehr in Berlin-Bremen, Düsseldorf, Frankfurt, Hamburg, München
und Stuttgart
040850 Mai 05
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