Higher demand in emerging and developed markets has been cited as the driver behind Lafarge’s 9% increase in sales in the first quarter of the year, compared to the same period last year.
Higher demand in emerging and developed markets has been cited as the driver behind Lafarge’s 9% increase in sales in the first quarter of the year, compared to the same period last year. The company reported that sales reached €3.55billion during the period, while EBITDA remained stable at €514million.
The company saw the biggest growth in the aggregates and concrete sectors where sales increased by 12% during the three month period due to volume growth and higher pricing. Lafarge reports a steady volume recovery in developed markets, improved pricing, and strong cost reduction in this area.
Overall Lafarge has said that it continues to see cement demand moving higher and estimates market growth of between 2 and 5% in 2011 compared to last year. Emerging markets continue to be the main driver of demand and the company said it benefits from its well balanced geographic spread of high quality assets.
For developed markets, the Lafarge forecasts that demand will continue to recover. Overall pricing is expected to move higher for the year in the context of a higher cost inflation environment, although levels of pricing movements will vary by market.
