Interim Results
24 July 2003 - 7:52PM
UK Regulatory
RNS Number:9100N
Lafarge
24 July 2003
Lafarge reports first half 2003 sales
* Sales down 11.9% to Euro 6,350 million from Euro7,203 million
* Negative foreign exchange impact due to Euro appreciation: -10.9%
* Slight increase of underlying sales: + 0.8%
Sales as at June 30, 2003 declined 11.9% to Euro 6,350 million from Euro 7,203 million
at June 30, 2002 largely due to significant foreign currency variations which
impacted sales by -10.9%. The net scope effect on sales amounted to -1.8% mainly
as a consequence of the divestments realized in 2002. Underlying sales were up
+0.8% at the end of June.
Sales in the first half of the year were generally slower in the Northern
hemisphere compared to 2002, due to harsh weather conditions during the winter
and despite an encouraging pick up in June 2003.
The sales report for each Division, excluding foreign exchange, scope effects,
and before inter divisional sales elimination is as follows:
CEMENT: +0.9%
Sales rose 0.9% during the first half (-3.4% in Quarter 1 and +3.0% in
Quarter 2).
After the harsh winter experienced in the first quarter and a slow start in
April and May, there were some signs of a pick up in activity levels in June.
Western Europe recorded stable sales overall by the end of June. Strong growth
was seen in Spain, where the construction market continues to boom, and in
Greece with record sales in the run up to the Olympic Games. France and the UK
saw some recovery in June, but Germany remains poor as a result of the continued
low level of prices. After the prolonged harsh winter the start to the North
American construction season was delayed by a wet spring. Sales were therefore
down in the first half. Pricing in the US showed a modest decline, particularly
due to pricing pressure in the South East and North East. Pricing in Canada was
however favorable.
Positive sales trends overall were recorded in the rest of the world.
Particularly good market conditions allowed strong growth in Romania, Morocco,
Jordan, and across Africa. Favorable pricing trends in much of Latin America,
South Korea and also India helped offset generally slower volumes. Malaysia
recorded some recovery in the second quarter despite continued price pressure.
Areas of weakness remain the Philippines, with very low prices, Venezuela where
the unstable economic situation has led to a large fall in volumes and Poland,
which is still experiencing a depressed construction market.
AGGREGATES & CONCRETE: +1.9%
Sales rose 1.9% during the first half (-0.6% in Quarter 1 and +3.3% in
Quarter 2).
Sales rose in Western Europe driven by the UK and Spain. In the UK, the asphalt
and paving business benefited from major contracts in progress and concrete
sales also showed a good level of growth. Spain continues to have record sales.
In France, sales at the end of June were marginally down despite positive
pricing trends. In North America, aggregates and concrete sales in the US were
held back by poor weather conditions and weak levels of demand. In Canada, where
there is a stronger construction market, concrete sales recorded a strong level
of sales growth; however, aggregate sales were adversely affected by poor
weather conditions in the East and in Alberta.
ROOFING: -1.7%
Sales declined by 1.7% during the first half (-3.2% in Quarter 1 and -0.6%
in Quarter 2).
Sales in Western Europe were down, with the exception of the UK, Italy and
Austria. Weaker sales continued in France, Germany, Scandinavia and the Benelux,
particularly for concrete tiles. Sales of roofing components decreased slightly.
Chimney sales improved marginally. In the United States, sales continued to
grow.
GYPSUM: +1.8%
Sales rose 1.8% during the first half (+1.9% in Quarter 1 and +1.6% in
Quarter 2).
The increase in sales was due to overall positive growth in Western Europe and
Asia, which offset lower sales in Germany, Poland and North America. In North
America, volumes were held back by lower commercial construction. Prices have
edged up to an average of US$97 per thousand square feet in June.
NEGATIVE FOREIGN EXCHANGE IMPACT OF -10.9% AMOUNTING TO Euro791 MILLION
The effect of foreign currency fluctuations on the first half 2003 sales was
significant. The strong appreciation of the Euro has had a material translation
impact on sales generated in the following currencies: US Dollar (Euro314
million), Pound Sterling (Euro68 million), Canadian Dollar (Euro60 million),
Brazilian Real (Euro58 million), and the Malaysian Ringgit (Euro47 million).
SCOPE CHANGES OF -1.8% AMOUNTING TO Euro110 MILLION
Sales in the first half from acquisitions amounted to Euro 114 million. Divestments
and a change in the consolidation method of Morocco resulted in a reduction in
sales of Euro 224 million.
CONSOLIDATED SALES AS AT JUNE 30, 2003
At constant scope
June 30,2003 June 30,2002 At constant scope and foreign
Euro Million Euro Million Variation and foreign exchange, before
exchange inter divisional
sales elimination
Cement 3,031 3,551 -14.6% +0.2% +0.9%
Aggregates & Concrete 1,980 2,218 -10.7% +2% +1.9%
Roofing 679 722 -6.0% -1.7% -1.7%
Gypsum 593 604 -1.7% +1.5% +1.8%
Others 67 108 -38% +12.5% +12.5%
TOTAL 6,350 7,203 -11.9% +0.8% NA
Lafarge is the world leader in building materials, and employs 77,000 people in
75 countries. The Group holds top-ranking positions in all four of its
Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted
sales of Euro14.6 billion in 2002. More information is available on:
www.lafarge.com
Lafarge's next financial publication - 2003 half year results - will be on
September 4 2003 (before the Euronext stock market opens).
For release worldwide with contemporaneous release in the United States.
PRESS CONTACTS: INVESTOR RELATIONS:
Veronique Doux: 33-1 44-34-19-47 James Palmer: 33-1 44-34-11-26
veronique.doux@lafarge.com james.palmer@lafarge.com
Brunswick Daniele Daouphars:33-1 44-34-11-51
Stephanie Tessier 33-1 53-96-83-79 daniele.daouphars@lafarge.com
stessier@brunswickgroup.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; seasonal nature 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 COB number R03-0375 and 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.
2003: First Half Sales Conference Call
Following the release of Lafarge's first half sales, a conference call will be
held on:
July 24th, 2003 at 15:30 French time, in English
(14:30 UK time; 09:30AM EDT in North America)
The speakers will be:
Jean-Jacques Gauthier - Chief Financial Officer
James Palmer - Vice-President Investor Relations
Daniele Daouphars - Investor Relations
If you wish to participate in the conference call, please dial:
From France +33 (0) 1 70 99 32 98
From UK +44 208 515 23 03
From USA +1 303 205 00 33
From USA toll free +1 800 257 70 63
Conference call name: "Lafarge"
A replay of the conference call will be available from July 24th until August
4th at the following numbers:
From France +33 (0) 170 99 32 95 Access code: 13995#
From UK +44 208 79724 99 Access code: 921065#
From USA toll free +1 800 405 2236 Access code: 546465#
Consolidated Figures
Sales
(Millions of euros) 2003S1 2002S1 03/02
By geographical zone of destination
Western Europe 2,852 3,019 -6%
Central and Eastern Europe 291 262 11%
Emerging Mediterranean 251 333 -25%
North America 1,601 1,999 -20%
Latin America & the Caribbean 297 403 -26%
Sub Saharan Africa/Indian Ocean/Others 429 449 -4%
Asia /Pacific 629 738 -15%
By business line
Cement 3,031 3,551 -15%
Aggregates & Concrete 1,980 2,218 -11%
Roofing 679 722 -6%
Gypsum 593 604 -2%
Others 67 108 -38%
Total 6,350 7,203 -12%
Cement
Volumes by destination (adjusted for the contributions of our proportionaly
consolidated
subsidaries)
(millions of tonnes) 2003S1 2002S1(1) 03/02
Western Europe 15.2 16.5 -8%
Central and Eastern Europe 3.6 3.0 20%
Emerging Mediterranean 4.8 5.1 -6%
North America 7.7 8.0 -4%
Latin America & the Caribbean 3.0 3.4 -12%
Sub Saharan Africa/ Indian Ocean 5.3 5.0 7%
Asia/Pacific 11.3 10.6 7%
Total 50.9 51.6 -1%
Sales after elimination of inter divisional sales by geographical zone of
destination
(Millions of euros) 2003S1 2002S1 03/02
Western Europe 1,049 1,160 -10%
Central and Eastern Europe 171 151 13%
Emerging Mediterranean 207 274 -24%
North America 587 756 -22%
Latin America & the Caribbean 202 282 -28%
Sub Saharan Africa/Indian ocean/Others 363 395 -8%
Asia/Pacific 452 533 -15%
Total consolidated sales 3,031 3,551 -15%
Sales before elimination of inter divisional sales by origin
(Millions of euros) 2003S1 2002S1 03/02 Like
for like
Western Europe 1,175 1,276 -8%
Central and Eastern Europe 179 156 15%
Emerging Mediterranean 189 267 -29%
North America 661 839 -21%
Latin America & the Caribbean 226 315 -28%
Sub Saharan Africa/Indian ocean/Others 420 431 -3%
Asia/Pacific 444 540 -18%
Total before elimination of
inter-divisional sales 3,294 3,824 -14% 0.9%
Total consolidated sales 3,031 3,551 -15% 0.2%
(1) The 2002 figures were restated after reallocation of trading activities
Aggregates & Concrete
Volumes by destination (adjusted for the contributions of our p
roportionaly consolidated subsidiaries
Pure aggregates before elimination
with asphalt & Paving 2003S1 2002S1 03/02
(millions of tonnes)
Western Europe 37.2 36.1 3%
North America 45.9 47.5 -3%
Other countries 8.2 7.9 4%
Total 91.3 91.5 0%
Concrete 2003S1 2002S1 03/02
(millions of cbm)
Western Europe 7.1 7.5 -6%
North America 4.7 4.9 -4%
Other countries 4.6 5.0 -8%
Total 16.4 17.4 -6%
Sales after elimination of inter divisional sales by geographical zone
of destination
(Millions of euros) 2003S1 2002S1 03/02
Aggregates & related products 834 917 -9%
Ready-mix concrete & concrete
products 1,146 1,301 -12%
Total Aggregates & Concrete 1,980 2,218 -11%
of which Western Europe 920 930 -1%
" North America 834 1,020 -18%
" Other countries 226 268 -16%
Sales before elimination of inter divisional sales by origin
(Millions of euros) 2003S1 2002S1 03/02 Like
for like
Aggregates & related products 842 925 -9%
Ready-mix concrete & concrete
products 1,147 1,303 -12%
Total Aggregates & Concrete
(bef elim of intra-comp. sales) 1,989 2,228 -11%
of which Western Europe 926 937 -1%
" North America 836 1,023 -18%
" other countries 227 268 -15%
Total Aggregates & Concrete
(consolidated) 1,980 2,218 -11% 2.0%
Roofing
Volumes by destination (adjusted for the contributions of our proportionally
consolidated subsidiaries)
2003S1 2002S1 03/02
Concrete roof tiles (millions of sSm)
Western Europe 32.0 32.3 -1%
North America 9.3 8.9 4%
other countries 16.3 18.1 -10%
Clay roof tiles
Western Europe (millions of sSm) 11.1 11.1 0%
Chimneys (miiliers de kms) 1,269 1,278 -1%
Sales (after elimination of
intra-divisional sales by origin)
(Millions of Euros) 2003S1 2002S1 03/02 Like
for like
Total 679 722 -6% -1.7%
of which concrete roof tiles Western Europe 245 254 -4%
" North America 50 59 -15%
Other countries 49 60 -18%
of which clay roof tiles 121 121 0%
of which chimneys (1) 78 79 0%
of which other roofing products 136 149 -9%
(1) Including the "other roofing products" of the Chimney business.
Gypsum
Volumes of gypsum wallboard (adjusted for the contributions of our
proportionally consolidated subsidiaries)
(millions of sSm) 2003S1 2002S1 03/02
Total 307 284 8%
Sales (after elimination of intra-divisional sales by origin)
(Millions of euros) 2003S1 2002S1 03/02 Like
for like
Total 593 604 -2% 1.5%
of which Western Europe 354 336 8%
of which North America 107 135 -21%
of which other countries 132 133 -1%
Sales variance analysis by region and in major domestic markets.*
Price, product,
customer & other
Volume effect mix effect Activity variation
vs2002
% % %
CEMENT
Western Europe 2.2 -0.4 1.7
France -3.5 4.1 0.5
UK 0.7 0.1 0.8
Spain 9.6 1.9 11.4
Germany 16.2 -35.9 -19.7
Greece 4.1 4 8.1
Central Europe -1.5 4.2 2.6
Poland -12.5 -0.3 -12.8
Romania 0.6 19.6 20.2
Mediterranean Basin 1.8 3.8 5.6
Turkey -2 0.1 -1.9
Morocco 10.5 3.1 13.6
Jordan -0.5 5.9 5.4
Egypt 1.5 -4.4 -2.8
North America -4.7 0.4 -4.3
South America, Caraibs -5.7 7.2 1.5
Brazil -2.7 25.6 22.8
Venezuela -36.3 27.9 -8.5
Chile -1.4 9.3 8
Africa, Indian ocean -0.4 10.4 10.1
Kenya 3.1 5.3 8.4
Nigeria -0.8 9.8 9
South Africa -8.9 14 5.1
Asia, Middle East 4.1 -4.3 -0.2
Malaysia 2.6 -6 -3.4
Philippines 8.2 -25.1 -16.8
India -7.8 10.5 2.7
South Korea 0.1 7.1 7.2
Total CEMENT 0.2 0.6 0.9
AGGREGATES
France -2.9 1.7 -1.3
UK (Pure Aggregates) (1) 0.8 8.3 9.1
North America
(Pure Aggregates) -4.4 3.3 -1.1
Total Aggregates -1.4 3.3 1.8
READYMIX
France -3.8 4.2 0.4
UK 6.4 6.9 13.3
North America -2.4 2.4 0
Total Readymix -2 4.4 2.4
(1) UK sales impacted by aggregates levy . Price effect without aggregates
levy was 4%.
* Variance on like for like sales before elimination of sales between Divisions
Sales variance analysis by region and in major markets.*
Price, product,
customer & other
Volume effect mix effect Activity variation
vs2002
% % %
ROOFING
Western Europe Concrete T&F -2.8 -0.4 -3.1
Western Europe Clay T&F -0.8 -0.2 -1
UK 0
Concrete 4.4 3 7.4
Clay -6.1 7.4 1.3
France
Concrete -9.9 0.9 -9
Clay -6.1 5 -1.1
Germany
Concrete -6.9 -2.5 -9.4
Clay 7.6 -6.1 1.5
United States (Concrete) 4 0.5 4.4
Chimneys -1.1 1.3 0.2
Accessories -1.7 -1.7
TOTAL ROOFING -1.7
GYPSUM
BOARDS
Western Europe -2.4 5.8 3.3
North America -6.4 0.6 -5.9
Asia / Pacific 11.1 -0.8 10.3
TOTAL GYPSUM -0.6 2.1 1.5
*Variance on like for like sales before elimination of sales between Divisions
This information is provided by RNS
The company news service from the London Stock Exchange
END
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