Reporting a fourth-quarter loss, compared to profit last year, Lafarge has said its merger with Holcim is on track for completion in the first half of 2015. The company says the net result group share at €145million was impacted by €385 million non-cash impairment of assets related to Syria and Iraq. The Q4 figures release by Lafarge show sales up 2% to €3,207 million ((up 1% like-for-like); EBITDA (earnings before interest, tax, depreciation and amortisation), down 4% to €679 million (1% like-for-like) and
Reporting a fourth-quarter loss, compared to profit last year, Lafarge has said its merger with Holcim is on track for completion in the first half of 2015.
The company says the net result group share at €145million was impacted by €385 million non-cash impairment of assets related to Syria and Iraq.
The Q4 figures release by Lafarge show sales up 2% to €3,207 million ((up 1% like-for-like); EBITDA (earnings before interest, tax, depreciation and amortisation), down 4% to €679 million (1% like-for-like) and current operating income down 8% to €450 million (down 3% like-for-like).
The full year key figures show sales down 2% to €12,843 million (up 3% like-for-like); EBITDA down 3% to €2,721 million (up 5% like-for-like) and current operating income down 3% to €1,881 million (up 7% like-for-like)
Looking ahead, Lafarge says it expects EBITDA for 2015.
For Q4, sales improved to €3.207 billion from €3.157 billion, up 1% on a like-for-like basis.
Adjusted for one-off items, net income group share for the year increased 10%, supported by organic EBITDA growth, lower restructuring and financial charges and the steady improvement of the joint ventures’ net profit.
Cement volumes grew 2% for the year to 116.4 million tonnes, supported by solid growth in the USA and higher volumes in Egypt and the start-up of new plants in India and Russia.
Aggregates volumes slid 2% to 161.4 million tonnes, and the ready-mix concrete volume was down 1% to 26.4 million m³.
Lafarge says strong aggregate volume growth in South Africa and the USA was offset by lower activity in France and Russia, as well as a decrease in Western Canada due to some large infrastructure projects that came to completion last year.
“2015 will be an exceptional year for the group.
Over the past years, we have undertaken a structural and fundamental transformation. We focused on our customers, promoted innovation and reshaped our portfolio to concentrate on fast growing market segments,” says Bruno Lafont, chairman and chief executive officer of Lafarge.
“We have also developed a culture of strict capital allocation discipline, reducing our cost base and optimising our working capital and our investments.
“In 2014, we completed our 2012-2015 cost reduction and innovation objectives a full year ahead of schedule, supporting our solid operating results.
“Lafarge is today perfectly positioned to best benefit from upswings in any and all of its markets in an economic environment that, whilst remaining volatile, will be more favourable in 2015. We are committed to continue all our actions, including improving financial structure.
“With this in mind, I am confident that we will drive significant growth of our results and we do expect an EBITDA of between €3 billion and €3.2 billion in 2015.
“2015 will also be the year of our planned merger to create LafargeHolcim which is now only four months away. We have accomplished major steps, including the announcement of the future executive committee. We are today all fully mobilized to launch the new group from a running start on day one.”
