Results as of March 31, 2010

Consolidated accounts as of March 31, 2010

Current operating income as of March 31, 2010

Highlights by business

Cement 

• Sales were down 8%, primarily resulting from the impact of adverse weather conditions in both developed and emerging markets along with the continued lower economic activity in North America, Western Europe, and Central and Eastern Europe.
• Current operating income was down 22%, driven by lower volumes.
• Pricing remained solid overall with most prices remaining firm or increasing compared to fourth quarter 2009 prices.
• Strong impact of the cost reduction program in all regions.

Aggregates & Concrete

• Sales were down 16%, impacted by adverse weather and difficult market conditions in Europe and North America.
• Current operating loss of €72 million reflected the large presence in developed markets where volumes declined and results are traditionally lower due to seasonality.
• Despite volume declines, results stabilized compared to last year thanks to strong cost reduction measures.

Gypsum

• Sales were down 1% as volumes stabilized but prices were lower compared to last year first quarter.
• Current operating income declined €7 million as compared to last year.
• Strong impact of the cost reduction program in all regions.

Investments and divestments

• Investments totaled €384 million in 2010, compared to €424 million in 2009.
  • Sustaining capital expenditures decreased by 40% to €45 million in 2010. 
  • Internal development capital expenditures were about stable at €317 million in 2010.
  • Acquisitions were €22 million in 2010, slightly lower than last year.
• During the quarter, Lafarge achieved divestments of €36 million.

Additional information

There will be an analyst conference call at 9:00 CET, on May 5, 2010 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 audiocast on this website as well as via teleconference:

• Dial in number (France): +33 (0)1 70 99 42 84
• US dial in number: +1 212 444 0896
• International dial in number: +44 (0)20 7138 0845

Please note that in addition to the audiocast replay on this website, a conference call playback will be available from May 5, 2010 to May 14, 2010 at the following numbers:

• France playback number: +33 (0)1 74 20 28 00 (code: 1251421#)
• US playback number: +1 347 366 9565 (code: 1251421#)
• International playback number: +44 (0)20 7111 1244 (code: 1251421#)

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 more than 78,000 employees in 78 countries, Lafarge posted sales of Euros 15.9 billion in 2009.
In 2010 and for the sixth year in a row, Lafarge was listed in the ‘Global 100 Most Sustainable Corporations in the World'. 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 document 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, many of which are outside our control, including, but not limited to the risks 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).
This document does not constitute an offer to sell, or a solicitation of an offer to buy Lafarge shares.