Lafarge net loss doubles in Q1

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France: Lafarge's net loss has nearly doubled year-on-year to Euro117m for the first quarter of 2013, from Euro60m in the same quarter in 2012. The multinational building materials producer blamed the result on poor weather, production limitations in Algeria and Egypt and reduced working days in the quarter.

"The first quarter traditionally represents a small proportion of our results and is not indicative of full year trends. Our outlook remains unchanged and we expect to see cement demand growth in our markets of between 1 to 4% in 2013," said chairman and chief executive officer of Lafarge, Bruno Lafont.

Lafarge's cement volume's decreased by 8% year-on-year to 28.7Mt in the first quarter of 2013 from 31.3Mt in the same quarter in 2012. Sales fell by 6% to Euro3.14bn from Euro3.35bn. Earnings before interest, taxes, depreciation and amortisation fell by 26% to Euro380m from Euro511m. However, the company reduced its net debt by 4% to Euro11.8bn from Euro12.4bn.

By region, cement volumes declined by 25% in north America to 1.5Mt from 2Mt, affected by adverse weather. In western Europe cement volumes declined by 24% to 2.9Mt from 3.8Mt, with sales volumes down by higher percentages in Spain and Greece. In central and eastern Europe cement volumes declined by 14% to 1.6Mt from 1.8Mt. In Middle East and Africa cement volumes declined by 10% to 10.1Mt from 11.2Mt, affected by a strong first quarter in 2012 and work stoppages and gas shortages in Algeria and Egypt respectively. Notably, Egypt showed a 31% drop in cement volumes. In Latin America cement volumes fell by 4% to 2.2Mt from 2.3Mt. In Asia, cement volumes rose by 3% to 10.4Mt from 10.2Mt. Notably, Lafarge reported that prices fell due to increased supply in China.

In its outlook the group repeated its aims to reduce net debt below Euro10bn as soon as possible in 2013. Capital expenditures will be limited initially to Euro800m in 2013. Price increases have been actively implemented in most of its markets and Lafarge expects to see benefits from this later in the year.

Last modified on 08 May 2013

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