Lafarge Q3 profit
First publishedon www.AggBusiness.com
Lafarge, the world's largest cement maker, aims to cut 500million euros in costs in 2012 after reporting a decline in third-quarter profits.
However, the group continues to see cement demand rising, driven by emerging markets, and maintained its estimate of market growth of 2 to 5 percent in 2011.
"These measures, including price actions in response to a high cost environment, are part of ongoing steps to strengthen profitability, reduce debt and maintain strong liquidity," chief executive Bruno Lafont said in a statement.
Overall pricing is expected to be stable to slightly higher in 2011 amid rising costs, the group said.
For 2012, Lafont said that he remains cautious about prospects although he does not expect a significant recovery in developed markets.
Third-quarter operating profit dropped 9% to €750 million while sales rose 1 percent to €4.211 billion.
Net profit in the quarter declined 10% to 336million euros.
The company said it has secured over €2 billion worth of proceeds from disposals to reduce its debt, which totaled €14.26 billion at the end of September.