Lafarge sales growth continues
By Sarah Ann McCay14 November 2012
Cement producer Lafarge saw sales continue to grow in the third quarter, up 4% to €4.39 billion, compared with the same period last year. Increases were also recorded in EBITDA, which was up 6% to just over €1 billion, and operating income jumped 9% to €815 million.
Year-to-date figures also continued to climb, with the first nine months of 2012 seeing a 5% increase in sales to €12 billion, a 7% rise in EBITDA to €2.6 billion and operating income up 12% to €1.8 billion.
The company attributed its sales increases to successful price actions across all product lines to respond to cost inflation and growth in emerging markets.
International business buoyed growth, as operations outside of Europe attributed to 75% of the group’s EBITDA, up 16% on the quarter and 20% on year-to-date figures.
Bruce Lafont, chairman and CEO of Lafarge, said, “Our actions to generate sales growth and cash, reduce debt, and improve returns, led to a fourth consecutive quarter of positive trends even in a lower growth volume environment. These actions will accelerate as we implement €550 million of innovation and cost savings initiatives in 2013 of our four year, €1.75 billion additional EBITDA plan. We will also extract more out of the potential of our assets with strict capital discipline."
He added that Lafarge would continue to work towards reducing debt below €10 billion in 2013 and that the group foresees sustainable cash generating growth moving forward.
Lafarge said it continued to see cement demand moving higher and maintained its estimated year-on-year market growth of between 1% and 4% in 2012.