First half 2002 sales

Euronext: LG
NYSE: LR

07.25.2002
 

 

  • Sales up 29.1%, to €7,203 million, compared with €5,578 million in 2001, including scope of consolidation changes of €1,622 million,
  • Sales growth limited to 1.5%, excluding foreign exchange and scope of consolidation effects, due to a slight decline in June,
  • Cement division sales up 3.8%, Gypsum division sales up 9.3%.

Sales growth is largely the result of the Group's scope of consolidation changes, particularly for the Cement division which posted a gross increase in sales of 58.2%.

Sales from former Blue Circle operations totalled €1,538 million.

The sales report for each division, excluding foreign exchange and scope of consolidation effects, is as follows:

CEMENT: up 3.8%

Cement sales rose 3.8% during the first half (+8.6% in the first quarter and +0.35% in the second).

The cement business was strong throughout Western Europe, with the notable exception of Germany where cement prices declined. Sales were flat in Central and Eastern Europe, although economic sluggishness continued in Poland.

Sales grew slightly by 0.4% in North America year-on-year. Although volumes were slightly down during the first half, prices were slightly higher.

There was significant cement sales growth elsewhere in the world.

AGGREGATES & CONCRETE: down 0.4%

Sales were 0.4% less than in the first half of 2001, with sales increasing 1.3% in the first quarter and declining 1.5% in the second.

Aggregates sales decreased 3.1%, mainly due to trends in the North American market. Sales volumes in the Canadian province of Ontario dropped significantly due to strikes that disrupted project tendering, and market conditions were weak in the Great Lakes region.

Concrete sales rose 2.1%, with strong growth in France and a decline in North America.

ROOFING: down 4.6%

The slowdown in the sales decline in the second quarter (-2.2%) compared to the first quarter (-8%) resulted in a limited drop of the division sales of 4.6% for the first half. This relative improvement was mainly due to market conditions in Germany.

Roofing division sales were generally rising outside of Europe and particularly in Malaysia.

GYPSUM: up 9.3%
Gypsum sales increased by 9.3% (+6.7% in the first quarter and +12% in the second). This was the result of higher sales volumes and sales prices in North America, where the average price per thousand square feet during the first half was USD 95, compared with USD 65 in 2001. In Asia, sales grew significantly during the first half of the year.

Gypsum sales in Europe were flat in a mixed environment. A decline in Germany and Poland was offset with growth in France, Great Britain and Southern Europe.

SCOPE OF CONSOLIDATION EFFECT: UP 29.4% AMOUNTING TO €1,622 MILLION

Sales resulting from acquisitions amounted to €1,699 million, with divestitures reducing sales by €77 million.

Sales from former Blue Circle operations amounted to €1,538 million. Compared to the first half of last year, excluding foreign exchange and scope of consolidation effects, sales were globally flat with cement sales rising 2.7%.


FOREIGN EXCHANGE EFFECT: DOWN 1.8% AMOUNTING TO €77 MILLION

The foreign exchange effect was largely due to the decrease in the South African rand, the Brazilian real and the Canadian dollar.


Consolidated sales as of 30 June 2002
  June 30, 2002
in million €
June 30, 2001
in million €
Change At constant scope and foreign exchange
Cement 3,551 2,245 +58.2% +3.8%
Aggregates & Concrete 2,218 1,952 +13.6% -0.4%
Roofing 722 728 -0.7% -4.6%
Gypsum 604 540 +11.8% +9.3%
Other 108 113 -4.4% -9.9%
TOTAL 7,203 5,578 +29.1% +1.5%

 

World leader in building materials, Lafarge employs 83,000 people in 75 countries. Lafarge holds top-ranking positions in all four of its Divisions – Cement, Aggregates & Concrete, Roofing and Gypsum – and recorded sales of €13.7 billion in 2001.

Contacts
Press Contacts Investor Relations
Denis Boulet
Tél : 33-1 44 34 94 14
denis.boulet@lafarge.com
James Palmer
Tél : 33-1 44 34 11 26
james.palmer@lafarge.com<
Véronique Doux
Tél : 33-1 44 34 19 47
veronique.doux@lafarge.com
Danièle Daouphars
Tél : 33-1 44 34 11 51
daniele.daouphars@lafarge.com

Statements made in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors") which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonality of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's Reference Document filed with the French COB under the reference number D02-62 and updated under the reference number D02-162/A1, and its annual report on Form 20-F filed with the Securities and Exchange Commission in the USA. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.

 

The press release (pdf, 42.49 KB)