Results as of March 31, 2012
Date 05/04/2012
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Mélanie
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Consolidated accounts as of March 31, 2012
The Board of Directors of Lafarge, chaired by Bruno Lafont, met on May 3, 2012 and approved the accounts for the period ended March 31, 2012. Further to their limited review of the interim condensed consolidated financial statements of Lafarge, the auditors have established a report which is included in the interim financial report.
| First Quarter | ||||
|---|---|---|---|---|
| 2012 | 2011 (5) | Variation | ||
| Gross | Like for like | |||
| Volumes | ||||
| Cement (million tons) | 31.3 | 31.1 | 1 % | 1 % |
| Aggregates (million tons) | 33.2 | 34.7 | -4 % | -6 % |
| RMX concrete (million m3) | 7.1 | 7.6 | -7 % | -3 % |
| Results (million euros) | ||||
| Sales | 3,353 | 3,206 | 5 % | 5 % |
| EBITDA (1) | 516 | 479 | 8 % | 6 % |
| EBITDA margin (%) | 15.4 % | 14.9 % | 50 pb | |
| Current operating income | 267 | 208 | 28 % | 17 % |
| Net income group share (2) | (44) | (29) | ||
| Earnings per share (€) (3) | (0.15) | (0.10) | ||
| Free cash flow | (434) | (275) | ||
| Group net debt (4) | 12,364 | 14,240 | -13 % | |
(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 includes pre-tax restructuring charges of €94m and €9m for the first quarters 2012 and 2011, respectively (€62m and €5m after tax, respectively).
(3) Basic average number of shares outstanding of 287 million at the end of March 2012 and 286 million at the end of March 2011.
(4) Group net debt slightly increased from December 31, 2011 due to normal seasonal working capital changes.
(5) Figures for 2011, excluding net debt, are restated to reflect the reclassification of the Gypsum activities as discontinued operations.
EBITDA results by region (1)
| (€m) | First quater | ||
|---|---|---|---|
| 2012 | 2011 (2) | Variation | |
| North America | (46) | (75) | 39 % |
| Western Europe | 94 | 151 | -38 % |
| Central & Eastern Europe | (14) | (9) | -56 % |
| Middle East & Africa | 315 | 274 | 15 % |
| Latin America | 59 | 53 | 11 % |
| Asia | 108 | 85 | 27 % |
| TOTAL | 516 | 479 | 8 % |
(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) Figures for 2011 are restated to reflect the reclassification of the Gypsum activities as discontinued operations.
Sales development and financial results
Lafarge experienced higher sales volumes for cement, while aggregates and concrete sales volumes declined in the quarter. For cement, sales volumes increased 1%, reflecting volume improvements in Middle East and Africa, Latin America, and Asia. Aggregates sales volumes declined by 4% and concrete volumes declined by 7%, reflecting the impact of severe cold weather on construction in Western and Eastern Europe compared to last year.
Consolidated sales moved higher, up 5%, supported by increased prices across all of our product lines and favorable cement volumes in the majority of our regions.
EBITDA improved for the quarter, up 8%. Significant improvement in North America and double digit EBITDA increases in Middle East and Africa, Latin America, and Asia supported the higher growth. Declines occurred in Western and Eastern Europe due to the impact of poor weather conditions on construction in February, €23 million lower proceeds from the sale of carbon credits, and a challenging economic environment in Spain and Greece. Overall, cost reduction actions contributed €70 million to the results in the first quarter.
Net Income Group Share declined to (€44) million primarily due to €94 million of pre-tax restructuring charges taken as part of the implementation of the Group's 500 million euros cost savings program.
Net debt declined by €1.9 billion relative to last year and moved slightly higher compared to year-end 2011 due to normal seasonal working capital needs.
Investments, divestments and Liquidity
Investments totaled €188 million for the quarter, down from €293 million in 2011.
- Sustaining capital expenditures remained stable at €51 million.
- Internal development capital expenditures and acquisitions declined from €243 million in 2011 to €137 million in 2012.
Lafarge received €71 million in cash for divestments in the quarter, including sales of minority stakes, and plans to divest more than €1 billion in 2012.
As of March 31, 2012, the Group had €3.4 billion in undrawn committed credit lines, with an average maturity that was extended to about 3 years, in addition to €2.6 billion of cash on hand.
Additional information
The analyst presentation of results and the quarterly financial report, including the interim management report, the condensed consolidated financial statements and the notes are available on this website.
Practical information:
There will be an analyst conference call at 9:00 CET, on May 4, 2012 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 86
- Dial in (UK or International): +44(0)20 3140 8286
- Dial in (US): +1646 254 3365
Please note that in addition to the web cast replay, a conference call playback will be available until the 11th of May 2012 midnight at the following numbers:
- France playback number: +33 (0)1 74 20 28 00 (pin code: 4465037#)
- UK or International playback number: +44 (0)20 7111 1244 (pin code: 4465037#)
- US playback number: +1 347 366 9565 (pin code: 4465037#)
Lafarge's next financial publication - 2nd Quarter 2012 results - will be on July 27, 2012
(before the NYSE Euronext Paris stock market opens).
Notes to editors
Located in 64 countries with 68,000 employees, Lafarge is a world leader in building materials, with top-ranking positions in its Cement, Aggregates & Concrete businesses. In 2011, Lafarge posted sales of 15.3 billion euros.
For the second year in a row, Lafarge ranked amongst the top-10 of 500 companies evaluated by the "Carbon Disclosure Project" in recognition of their strategy and actions against global warming. 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.
