COR-Lafarge lowers its forecast cement demand
July 30, 2010 – 8:10 pmLafarge has lowered its forecast for 2010 demand for cement in view of the demand in the second quarter, during which the group's turnover fell 2% as organic.
The first cement world now exceed its target of 500 million euros from divestments of non-strategic assets for 2010 and said to have already secured 350 million euros.
The group also cut its capital expenditure to less than one billion euros in 2011 and reduce its structural costs by more than 200 million euros to reduce its debt.
Lafarge has exceeded its goal of cuts in its structural costs by 200 million euros in 2010.
This year, it now expects a change in demand for cement between -1% and +3% compared to 2009, against a range of 0-5% previously.
The group, also number two worldwide in aggregates and concrete, and number three for the plaster, notes a strong pricing despite localized erosions.
Group recorded second quarter sales rose 2% to 4.436 million, but down the same measure to perimeter and constant exchange rates.
Its operating income rose 5% to 836 million euros (but remains stable in organic figures), while its margins increased 0.6 points to 18.8%.
"Lafarge has recorded operating performance and solid margins in the quarter in an economy still mixed, marked by lower volumes in a number of markets and the early signs of recovery in some developed countries," said CEO Bruno Lafont said in a statement.
Throughout the first half, revenues fell 4% and operating income of 9% on an organic, while the margin down 0.3 points to 13.9%.
The Lafarge share closed Thursday at 43.49 euros, giving a market capitalization of around 12.3 billion euros.Since the beginning of the year, the stock has lost about 25% of its value, after a gain of more than 50% over the last year.
The German cement producer HeidelbergCement, the world number four in the sector, for its part, announced Friday an operating profit above expectations in the second quarter, taking advantage of a catch-up demand for building materials after a winter of unusually cold had slowed sharply in activity in this sector.
Sorry, comments for this entry are closed at this time.