Results as of June 30, 2011
Christel des Royeries
Laurence Le Gouguec
|Brut||Like for like||Brut||Like for like|
|Current operating income||836||702||-16%||-16%||1,072||926||-14%||-15%|
|Operating margin (%)||18.8%||15.9%||-290bps||13.9%||11.6%||-230bps|
|Net income Group share (2)||329||289||-12%||393||260||-34%|
|Earnings per share (€) (3)||€1.15||€1.01||-12%||€1.37||€0.91||-34%|
|Free cash flow||577||159||-72%||491||(163)||nm|
|Group net debt||15,160||14,260||-6%|
(1) EBITDA is defined as the current operating income before depreciation and amortization on tangible and intangible assets and is a non-GAAP financial measure.
(2) Net income group share for the first-half of 2010 includes a one-time €160 million net capital gain on the disposal of the Cimpor investment.
(3) Basic average number of shares outstanding of 286 million in both the quarter and first-half 2010 and 2011. Earnings per share for the first-half 2010 includes a one-time €0.56 per share capital gain on the disposal of the Cimpor investment.
Current operating income
|(€m)||Second quarter||First half|
|Aggregates & Concrete||95||87||-8%||23||29||26%|
Highlights by business
- Sales were stable in the quarter (up 3% like for like) and up 3% in the first-half (up 3% like for like), reflecting volume improvements in emerging markets and new capacities acquired in Brazil, offset by the negative impact of foreign exchange.
- Volumes increased 9% in the quarter (up 6% like for like) and 8% in the first-half (up 5% like for like), with growth driven by the Middle East Africa region and other emerging markets.
- Pricing was below first half 2010 levels, but progressively moved higher compared to fourth quarter 2010.
- Despite the Group's cost reduction program, higher cost inflation and foreign exchange put pressure on results and margins.
Aggregates & Concrete
- Sales moved down 2% in the quarter (up 1% like for like) but were up 3% in the first-half (up 4% like for like) as higher pricing was offset by foreign exchange in the second quarter.
- Current operating income declined in the quarter compared to last year as better pricing and significant cost saving measures could not compensate for lower volumes and higher cost inflation.
- Sales were up 2% in the quarter and up 5% in the first-half due to volume growth.
- Current operating income moved higher in the first-half as market activity improved and strong cost reduction mitigated the impact of cost inflation.
Investments, divestments and Liquidity
- Investments totaled €587 million in the first-half, compared to €718 million in 2010.
- Sustaining capital expenditures increased from €116 million in 2010 to €130 million in 2011.
- Internal development capital expenditures declined from €550 million in 2010 to €368 million in 2011.
- Acquisitions were €89 million in the first-half of 2011 excluding a €51 million third-party put, already recorded as debt, that was exercised in the first quarter.
- The Group increased its estimated capital spending for 2011 from €1 billion to €1.2 billion for productivity and development needs.
- Lafarge received €106 million in cash for divestments in the first-half.
- As of June 30, 2011, the Group had €4 billion in committed credit lines, of which only €0.5 billion was drawn, with an average maturity of around 3 years in addition to €2 billion of cash on hand. There are no financial covenants on debt at the Lafarge SA level.
There will be an analyst conference call at 9:00 CET, on July 28, 2011 hosted by Jean-Jacques Gauthier, Chief Financial Officer. The presentation will be made in English with slides that can be downloaded from this website.
The presentation may be followed via a live web cast on the Lafarge website as well as via teleconference:
- Dial in (France): +33 (0)1 70 99 42 85
- Dial in (UK or International): +44 (0)20 7136 2056
- Dial in (US): +1 212 444 0895
Please note that in addition to the web cast replay, a conference call playback will be available until the 6th of August 2011 midnight at the following numbers:
- France playback number: +33 (0)1 74 20 28 00 (pin code: 4591488#)
- UK or International playback number: +44 (0)20 7111 1244 (pin code: 4591488#)
- US playback number: +1 347 366 9565 (code: 4591488#)
Lafarge's next financial publication - 3rd Quarter 2011 results - will be on November 4, 2011
(before the NYSE Euronext Paris stock market opens).
Notes to editors
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.
This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its Internet website (www.lafarge.com). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.
More comprehensive information about Lafarge may be obtained on its Internet website (www.lafarge.com), under Regulated Information.
This document does not constitute an offer to sell, or a solicitation of an offer to buy Lafarge shares.