RNS Number:2182R
Lafarge
23 October 2003
Euronext: LG, NYSE: LR Paris, October 23, 2003
Lafarge reports sales to September 30, 2003
* Sales down 8.6% to Euro 10,281 million from Euro 11,251 million
* Negative foreign exchange impact due to Euro appreciation: -9.5%
* Increase of year to date underlying sales: + 3.0%
* Strong third quarter underlying sales: + 6.6%
Sales as at September 30, 2003 declined 8.6% to Euro 10,281 million from Euro 11,251
million at September 30, 2002 largely due to significant foreign currency
variations which impacted sales by -9.5%. The net scope effect on sales amounted
to -2.1% mainly as a consequence of the divestments realized in 2002. Underlying
sales were up +3.0% at the end of September, following a much improved third
quarter during which sales grew by 6.6%. The level of sales at the end of
September keeps us on track with our 2003 objective for operating income on
ordinary activities.
The sales report for each Division, excluding foreign exchange, scope effects,
and before inter divisional sales elimination is as follows:
CEMENT: +3.3%
Sales rose 3.3% during the first nine months (-3.4% in Quarter 1, +3.0% in
Quarter 2 and +7.7% in Quarter 3).
The pick up in activity levels observed at the end of June were confirmed during
the third quarter with sales rising by 7.7% on the back of a strong rise in
volumes sold particularly in emerging markets.
Western Europe recorded a slight increase overall, despite lower sales realized
in the third quarter in the UK. These were more than offset by strong sales in
Greece. In Germany the severe price erosion experienced over the past year has
now stabilized and price increases are being implemented.
After a marked improvement in the third quarter with rising volumes and only a
marginal price decline overall, sales in North America now show only a modest
decline by the end of September. The contrast remains, however, between Canada
and the USA. In Canada we continue to record good levels of growth in both
volumes sold and prices compared to the USA, where volumes are down and prices
continue to be lower than in 2002 in several markets.
Positive sales trends overall were recorded in the rest of the world.
Particularly good market conditions allowed strong growth in Romania, Morocco,
Jordan, across much of Africa, South Korea and Chile. Favorable pricing trends
in Latin America and India helped offset generally lower volumes. Malaysia
continued to recover despite continued price pressure. Areas of weakness remain
Poland, which is still experiencing a depressed construction market and
Venezuela where the unstable economic situation has led to a large fall in
volumes. In the Philippines, where the severe price competition over the last
year has resulted in a significant decline in sales, the situation has started
to improve with increasing volumes and a rise in prices.
AGGREGATES & CONCRETE: +3.7%
Sales rose 3.7% during the first nine months (-0.6% in Quarter 1, +3.3% in
Quarter 2 and +6.5% in Quarter 3). Sales growth in Western Europe continues to
be driven by the UK and Spain. In the UK, the aggregates 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
September were marginally down despite positive pricing trends. In North
America, aggregates and concrete sales in the US, having been held back earlier
in the year by poor weather conditions and slower construction activity, saw
some recovery in the third quarter, particularly in the eastern markets. In
Canada, where the construction market has been more robust, concrete sales
recorded a strong level of sales growth; however, aggregate sales remain below
2002 due to the very poor first half which was adversely affected by unfavorable
weather conditions.
ROOFING: +1.0%
Sales increased by 1.0% during the first nine months (-3.2% in Quarter 1, -0.6%
in Quarter 2 and +5.5% in Quarter 3).
Sales in Western Europe were marginally down by the end of September. The UK,
Italy, Austria and Eastern Europe continue to record good growth in sales. In
Germany sales for the year to date remain down overall, however an improvement
was recorded in sales volumes with a stabilization of the pitched roof market
over the past few months possibly brought about by an anticipated end to
subsidies on new houses. Weaker sales continued in France, Scandinavia and the
Benelux, particularly for concrete tiles. Sales of roofing components increased
by 3% and chimney sales by 6%. In the United States, sales continued to grow
exploiting the strong housing market.
GYPSUM: +4.3%
Sales rose 4.3% during the first nine months (+1.9% in Quarter 1, +1.6% in
Quarter 2 and +9.5% in Quarter 3).
The increase in sales was due to overall positive growth in Western Europe with
a particularly buoyant market in the UK. In Asia, all markets showed sustained
growth. In North America, volumes were held back by lower commercial
construction, but prices have edged up to an average of US$100 per thousand
square feet in September.
NEGATIVE FOREIGN EXCHANGE IMPACT OF -9.5% AMOUNTING TO Euro 1,060 MILLION
The effect of foreign currency fluctuations on the first nine months of 2003
sales was significant. The strong appreciation of the Euro had a material
translation impact on sales generated in the following currencies: US Dollar (Euro
452 million), Pound Sterling (Euro 104 million), Canadian Dollar (Euro 82 million),
Brazilian Real (Euro 58 million), and the Malaysian Ringgit (Euro 58 million).
SCOPE CHANGES OF -2% AMOUNTING TO Euro 202 MILLION
Sales in the first nine months from acquisitions amounted to Euro 180 million.
Divestments and the change in the consolidation method for Morocco resulted in a
reduction in sales of Euro 382 million.
CONSOLIDATED SALES AS AT SEPTEMBER 30, 2003
At constant scope
September 30, September 30, At constant scope and foreign
2003 2002 Variation and foreign exchange exchange, before
Euro Million Euro Million inter divisional
sales elimination
Cement 4,837 5,433 -11.0% +2.5% +3.3%
Aggregates & Concrete 3,341 3,612 -7.5% +3.8% +3.7%
Roofing 1,119 1,157 -3.3% +1.0% +1.0%
Gypsum 896 878 +2.1% +4.0% +4.3%
Others 88 171 -48.5% +11.7%
TOTAL 10,281 11,251 -8.6% +3.0% NA
LAFARGE 3 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 full year sales - will be on January
28, 2004 (before the Euronext stock market opens), and not on January 22, 2004
as previously announced.
For release worldwide with simultaneous release in the United States.
PRESS CONTACTS: INVESTOR RELATIONS:
Veronique Doux: 33-1 44-34-19-47
veronique.doux@lafarge.com
James Palmer: 33-1 44-34-11-26
james.palmer@lafarge.com
Brunswick
Stephanie Tessier 33-1 53-96-83-79
stessier@brunswickgroup.com
Daniele Daouphars: 33-1 44-34-11-51
daniele.daouphars@lafarge.com
Statements made in this press release that are not historical facts, including
statements regarding our expected operating income, 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 public filings with the French Commission des Operations de Bourse
and the US Securities and Exchange Commission including its Reference Document
COB number D03-0375 as updated on June 5, 2003 and annual report on Form 20-F.
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: Conference Call on Sales to September 30, 2003
Following the release of Lafarge's sales to September 30, 2003, a conference
call will be held on:
October 23rd, 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 Executive Vice President, Finance
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 (0) 20 8400 6318
From UK toll free 0 80 0279 2520
From USA +1 303 262 2193
From USA toll free +1 800 218 0713
Conference call name: "Lafarge"
A replay of the conference call will be available from October 23rd, 2003 at
5.30 pm CET to November 4th, 2003 at 5.30 pm CET at the following numbers:
From France ++33 (0) 1 70 99 32 94 Access code: 132145#
From UK +44 (0) 20 8797 2499 Access code: 944493#
From UK toll free 0 80 0026 0020 Access code: 944493#
From USA +1 303 590 3000 Access code: 556374#
From USA toll free +1 800 405 2236 Access code: 556374#
CONSOLIDATED FIGURES (YTD)
Sales
(Millions of euros) 2003Q3 2002Q3 03/02
By geographical zone of destination
Western Europe 4 366 4 598 -5%
Central and Eastern Europe 522 452 15%
Emerging Mediterranean 431 526 -18%
North America 2 880 3 396 -15%
Latin America & the Caribbean 453 557 -19%
Sub Saharan Africa/Indian Ocean/Others 675 672 0%
Asia /Pacific 954 1 050 -9%
By business line
Cement 4 837 5 433 -11%
Aggregates & Concrete 3 341 3 612 -8%
Roofing 1 119 1 157 -3%
Gypsum 896 878 2%
Others 88 171 -49%
Total 10 281 11 251 -9%
CEMENT (YTD)
Volumes by destination (adjusted for the contributions of our proportionaly
consolidated subsidiaries)
(millions of tonnes) 2003Q3 2002Q3(1) 03/02
Western Europe 23,3 25,0 -7%
Central and Eastern Europe 6,6 5,4 22%
Emerging Mediterranean 8,1 8,5 -5%
North America 13,4 13,5 -1%
Latin America & the Caribbean 4,6 5,1 -10%
Sub Saharan Africa/ Indian Ocean 8,3 7,6 9%
Asia/Pacific 17,0 15,3 11%
Total 81,3 80,4 1%
Sales after elimination of inter divisional sales by geographical zone of
destination
(Millions of euros) 2003Q3 2002Q3 03/02
Western Europe 1 592 1 762 -10%
Central and Eastern Europe 309 261 18%
Emerging Mediterranean 355 439 -19%
North America 1028 1244 -17%
Latin America & the Caribbean 309 392 -21%
Sub Saharan Africa/Indian ocean/Others 567 589 -4%
Asia/Pacific 677 746 -9%
Total consolidated sales 4 837 5 433 -11%
Sales before elimination of inter divisional sales by origin
(Millions of euros) 2003Q3 2002Q3 03/02 Like
for like
Western Europe 1 786 1 914 -7%
Central and Eastern Europe 321 268 20%
Emerging Mediterranean 327 436 -25%
North America 1 159 1 388 -16%
Latin America & the Caribbean 347 435 -20%
Sub Saharan Africa/Indian ocean/Others 657 665 -1%
Asia/Pacific 666 749 -11%
Total before elimination of
inter-divisional sales 5 263 5 855 -10% 3,3%
Total consolidated sales 4 837 5 433 -11% 2,5%
(1) The 2002 figures were restated after reallocation of trading activities
AGGREGATES & CONCRETE (YTD)
Volumes by destination (adjusted for the contributions of our proportionaly
consolidated subsidiaries
Pure aggregates before elimination
with asphalt & Paving 2003Q3 2002Q3 03/02
(millions of tonnes)
Western Europe 56,4 54,4 4%
North America 86,6 86,9 0%
Other countries 14,2 13 9%
Total 157,2 154,3 2%
Concrete 2003Q3 2002Q3 03/02
(millions of cbm)
Western Europe 10,7 11,3 -5%
North America 8,1 8,1 0%
Other countries 7,3 7,7 -5%
Total 26,1 27,1 -4%
Sales after elimination of inter divisional sales by geographical zone of
destination
(Millions of euros) 2003Q3 2002Q3 03/02 Like
for like
Aggregates & related products 1 521 1 626 -6%
Ready-mix concrete & concrete products 1 820 1 986 -8%
Total Aggregates & Concrete 3 341 3 612 -8% 3,8%
of which Western Europe 1 394 1 395 0%
" North America 1 578 1 820 -13%
" Other countries 369 397 -7%
Sales before elimination of inter divisional sales by origin
(Millions of euros) 2003Q3 2002Q3 03/02 Like
for like
Aggregates & related products 1 533 1 639 -6%
Ready-mix concrete & concrete products 1 822 1 988 -8%
Total Aggregates & Concrete
(bef elim of inter-comp. sales) 3 355 3 627 -7% 3,7%
of which Western Europe 1 401 1 405 0%
" North America 1 582 1 823 -13%
" other countries 372 399 -7%
ROOFING (YTD)
Volumes by destination (adjusted for the contributions of our proportionally
consolidated subsidiaries)
2003Q3 2002Q3 03/02
Concrete roof tiles (millions of m(2))
Western Europe 53,0 53,3 -1%
North America 14,7 14,0 5%
other countries 27,0 28,2 -4%
Clay roof tiles (millions of m(2))
Western Europe 18 17,7 2%
other countries 1,2 1,2 0%
Chimneys (kms) 2 095 2 033 3%
Sales (after elimination of intra-divisional sales by origin)
(Millions of Euros) 2003Q3 2002Q3 03/02 Like
for like
Total 1 119 1 157 -3% 1,0%
of which concrete
roof tiles Western Europe 405 417 -3%
" North America 79 91 -13%
Other countries 82 93 -12%
of which clay roof tiles 199 194 3%
of which chimneys (1) 130 125 4%
of which other roofing products 224 237 -5%
(1) Including the "other roofing products" of the Chimney business.
GYPSUM (YTD)
Volumes of gypsum wallboard (adjusted for the contributions of our
proportionally consolidated subsidiaries)
(millions of m(2)) 2003Q3 2002Q3 03/02
Total 470 423 11%
Sales (after elimination of intra-divisional sales by origin)
(Millions of euros) 2003Q3 2002Q3 03/02 Like
for like
Total 896 878 2% 4,3%
of which Western Europe 518 483 7%
of which North America 167 193 -13%
of which other countries 211 202 4%
YTD SALES VARIANCE ANALYSIS BY REGION AND IN MAJOR MARKETS.*
Price, product,
customer &
Volume effect other mix effect Activity variation
% % 2002 %
CEMENT
Western Europe 3,3 -1,6 1,6
France -3,3 3,3 0
UK -0,4 -2,1 -2,5
Spain 5,8 1 6,7
Germany 21,5 -35,8 -14,3
Greece 8 4 12
Central and Eastern Europe -0,3 6,2 5,9
Poland -8 -1,1 -9
Romania 2,4 21,4 23,8
Mediterranean Basin 3,1 8,1 11,2
Turkey 1,9 11,3 13,2
Morocco 8,4 3,3 11,7
Jordan 2,1 8,1 10,2
Egypt 9,7 2,1 11,8
North America -0,9 0,3 -0,7
Latin America, Caraibs -6,3 9,7 3,4
Brazil -7,8 26,4 18,6
Venezuela -29,8 21,1 -8,7
Chile 3,9 7,7 11,6
Africa, Indian ocean 0,9 11,5 12,4
Kenya 4,1 3,7 7,8
Nigeria -1,6 12,8 11,2
South Africa -4 13,2 9,2
Asia, Middle East 9,6 -3,9 5,7
Malaysia 12,7 -7,3 5,4
Philippines 14,3 -17,6 -3,3
India -8,4 9,2 0,7
South Korea 4,5 6,2 10,7
Total CEMENT 3 0,3 3,3
AGGREGATES
France -3 2,5 -0,4
UK (Pure Aggregates) (1) 2 6,9 8,9
North America
(Pure Aggregates) -1,4 3,8 2,4
Total AGGREGATES 0,4 3,5 3,9
CONCRETE
France -4 4 0,1
UK 5,6 5,8 11,5
North America 0,4 1,8 2,2
Total CONCRETE 0,1 3,6 3,7
(1) UK sales impacted by aggregates levy. Price effect without aggregates levy
was 3,5%,
* Variance on like sales before elimination of sales between Divisions
YTD SALES VARIANCE ANALYSIS BY REGION AND IN MAJOR MARKETS.*
Price, product,
customer &
Volume effect other mix effect Activity variation
% % 2002 %
ROOFING
Western Europe Concrete T&F -2 -0,1 -2,1
Western Europe Clay T&F 1,4 -0,1 1,4
UK
Concrete 4 2,3 6,2
Clay -0,6 4,3 3,7
France
Concrete -8,6 0,4 -8,2
Clay -3,6 3,3 -0,3
Germany
Concrete -5,2 -1,1 -6,3
Clay 9,9 -3,5 6,4
United States (Concrete) 4,6 0 4,6
Chimneys 2,6 2,6 5,3
Accessories 3,2 3,2
Total ROOFING 1,0
GYPSUM
BOARDS
Western Europe 6,1 0,7 6,8
North America -0,6 1,8 1,2
Asia / Pacific 13,1 -0,7 12,4
TOTAL GYPSUM 4,3
* Variance on like sales before elimination of sales between Divisions
This information is provided by RNS
The company news service from the London Stock Exchange
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