Lafarge results grow for fifth consecutive quarter
Company reports strong operational performance in 2012 and growth in emerging markets
LAFARGE have reported a 3.5% increase in consolidated sales to €15.8 billion for the year ended 31 December 2012, driven by successful price actions across all product lines and by growth in emerging markets.
EBITDA and current operating income rose by 7% and 12% to €3.45 billion and €2.44 billion, respectively, despite continued slowdown in Europe. Operations outside Europe generated more than 75% of the Group’s EBITDA.
Meanwhile, the Group secured €474 million of divestments in 2012 and will shortly exceed its stated objective of securing €1 billion. The Group also delivered on its cost-savings target, achieving €410 million in the year.
Commenting on the results, Bruno Lafont, chairman and chief executive officer, (pictured) said: ‘We have delivered on our objectives for 2012 and our results grew for the fifth consecutive quarter, driven by strong operational performance and growth in emerging markets which generated close to 60% of our sales.
‘We are progressing fast and I am convinced that we will deliver most of our 2012–2015 plan to generate €1.75 billion additional EBITDA through cost reduction and innovation measures by the end of 2014, close to one year ahead of our initial objective. We aim to deliver €650 million additional EBITDA from these measures in 2013.’
Overall, the Group sees cement demand moving higher and estimates market growth of 1–4% in 2013, compared with 2012, with emerging markets continuing to be the main driver of demand.