Results as of December 31, 2011
Date 02/17/2012
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Consolidated financial statements
The Board of Directors of Lafarge, chaired by Bruno Lafont, met on February 16, 2012 and approved the accounts for the period ended December 31, 2011. The auditors have completed their audit on the consolidated financial statements. Their report is in the process of being issued.
| (€m) | Fourth Quarter | Year-to-Date | ||||||
|---|---|---|---|---|---|---|---|---|
| 2011 | 2010 | Variation | 2011 | 2010 | Variation | |||
| Gross | Like for like | Gross | Like for like | |||||
| Sales | 3,813 | 3,632 | 5% | 7% | 15,284 | 14,834 | 3% | 5% |
| EBITDA (1) | 798 | 798 | - | 1% | 3,217 | 3,488 | -8% | -6% |
| Current operating income | 538 | 522 | 3% | 1% | 2,179 | 2,393 | -9% | -9% |
| Operating margin (%) | 14.1% | 14.4% | -30bps | 14.3% | 16.1% | -180bps | ||
| Net income Group share | (3) | 62 | 593 | 827 | -28% | |||
| Earnings per share (€) (2) | (€0.01) | €0.22 | €2.07 | €2.89 | -28% | |||
| Free cash flow (3) | 701 | 826 | -15% | 1,208 | 1,761 | -31% | ||
| Group net debt | 11,974 | 13,993 | -14% | |||||
Note: Sales, EBITDA, Current operating income and Free Cash Flow are restated for 2011 and 2010 to reflect the reclassification of the Gypsum activities to discontinued operations.
(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) Basic average number of shares outstanding of 286.5 million and 286.1 million for 2011 and 2010, respectively, and 287.0 million and 286.1 million for the fourth quarter 2011 and 2010, respectively.
(3) Free Cash Flow for the full year includes the €338 million one-time payment for the Gypsum competition fine paid in the third quarter 2010.
Current operating income
| (€m) | Fourth quarter | Year-to-Date | ||||
|---|---|---|---|---|---|---|
| 2011 | 2010 | Variation | 2011 | 2010 | Variation | |
| Cement | 461 | 503 | -8% | 1,968 | 2,230 | -12% |
| Aggregates & Concrete | 72 | 53 | 36% | 237 | 216 | 10% |
| Other | 5 | (34) | (26) | (53) | ||
| TOTAL | 538 | 522 | 3% | 2,179 | 2,393 | -9% |
Note: Current operating income has been restated for 2011 and 2010 to reflect the reclassification of the Gypsum activities to discontinued operations.
Highlights by business
Cement
- Sales increased 6% in the quarter (up 7% like for like) and increased 3% for the year (up 4% like for like), reflecting volume improvements in emerging markets and favorable weather in the last quarter, partially offset by the negative impact of foreign exchange.
- Volumes increased 6% in the quarter (up 5% like for like) and 7% for the year (up 5% like for like), with growth driven by emerging markets.
- Pricing moved 1% higher in the quarter versus last year and was stable for the year.
- Despite the Group's cost reduction measures, higher cost inflation and foreign exchange weighed on results and margins.
- Excluding the impact of the Egyptian clay tax provision reversal in 2010, fourth quarter current operating income grew 5%.
Aggregates & Concrete
- Sales moved up 4% in the quarter (up 7% like for like) and were up 3% for the year (up 5% like for like) driven by higher aggregates volumes and overall higher pricing.
- Current operating income increased 36% in the quarter (up 23% like for like) and increased 10% for the year (up 2% like for like) as volumes and pricing fully compensated for higher cost inflation and foreign exchange.
Investments, divestments and Liquidity
- Investments totaled €1.2 billion in
2011, compared to €1.3 billion in 2010.
- Sustaining capital expenditures increased from €337 million in 2010 to €389 million in 2011.
- Internal development capital expenditures declined from €914 million in 2010 to €665 million in 2011.
- Acquisitions were €145 million in 2011 excluding a €51 million and €111 million third-party put, already recorded as debt, that were exercised in the first and third quarter, respectively.
- Capital expenditures for 2012 are planned to be no more than €800 million for the year.
- Lafarge received €2.2 billion in cash for divestments in the year, including sales of minority stakes, and expects to divest more than €1 billion in 2012.
- As of December 31, 2011, the Group had €4 billion in committed credit lines, of which none was drawn, with an average maturity of 2.2 years in addition to €3.2 billion of cash on hand. There are no financial covenants on debt at the Lafarge SA level.
Additional information
Practical information:
The annual results presentations will be hosted by Bruno Lafont, Chairman and CEO and Jean-Jacques Gauthier, Chief Financial Officer.
A press conference will be held at 9:00 AM CET at the Pavillon Gabriel, 5 avenue Gabriel, 75008 Paris.
The presentation will be made in French with simultaneous English translation, available on-site or by phone:
- From France: +33 (1) 70 99 42 70
- From UK: +44 (0) 20 3364 5381
In addition, a conference call playback will be available until the 24th of February 2012 midnight:
- France playback number: +33 (0)1 74 20 28 00 (pin code: 4317568#)
- UK playback number: +44 (0)20 7111 1244 (pin code: 2262241#)
There will be an analyst presentation at 11:15 CET at the Pavillon Gabriel, 5 avenue Gabriel, 75008 Paris. 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 the Lafarge website as well as via teleconference:
- Dial in (France): +33 (0)1 70 80 17 65
- Dial in (UK or International): +44 (0)20 7136 2054
- Dial in (US): +1 646 254 3362
Please note that in addition to the audiocast replay, a conference call playback will be available until the 24th of February 2012 midnight at the following numbers:
- France playback number: +33 (0)1 74 20 28 00 (pin code: 1400359#)
- UK or International playback number: +44 (0)20 7111 1244 (pin code: 5774708#)
- US playback number: +1 347 366 9565 (code: 5774708#)
Lafarge's next financial publication - 1st Quarter 2012 results - will be on May 4, 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.
