Lafarge says that positive trends continue with its third quarter results which show sales up 4% to €4.393 billion; EBITDA up 6% to €1,071 billion and current operating income up 9% to €815 million. The figures also reveal that for the year-to-date sales are up 5% to €12.007 billion; EBITDA is up 7% to €2.594 billion and current operating income up 12% to €1.837 billion. Net debt declined €2.1 billion from 30 September, 2011 and €350 million in Q3, 2012, while close to €500 million of divestments have been
Lafarge says that positive trends continue with its third quarter results which show sales up 4% to €4.393 billion; EBITDA up 6% to €1,071 billion and current operating income up 9% to €815 million.
The figures also reveal that for the year-to-date sales are up 5% to €12.007 billion; EBITDA is up 7% to €2.594 billion and current operating income up 12% to €1.837 billion.
Net debt declined €2.1 billion from 30 September, 2011 and €350 million in Q3, 2012, while close to €500 million of divestments have been secured to date and the group says it remains committed to securing €1 billion of divestments before the year-end.
The Q3 and year-to-date sales increase were driven by successful price actions across all product lines to respond to cost inflation and by growth in many emerging markets.
Operations outside of Europe generated three-quarters of the group’s EBITDA and rose 16% in the quarter and 20% year-to-date.
The group achieved €290 million of cost savings through end of September, €120 million in the third
quarter and is on track to reach at least €400 million for the full year.
However, net income group share declined due to restructuring charges, an impairment recorded in second quarter 2012, and a higher base comparison due to a one-off gain in the third quarter 2011. Excluding these items, net income group share improved 14% year-to-date.
Bruno Lafont, chairman and chief executive officer of Lafarge, said:
“Our actions to generate sales growth and cash, reduce debt, and improve returns, led to a fourth consecutive quarter of positive trends even in a lower growth volume environment.
“These actions will accelerate as we implement €550 million of innovation and cost savings initiatives in 2013 of our four-year, €1.75 billion additional EBITDA plan. We will also extract more out of the potential of our assets with strict capital
discipline.
“Economic conditions are still challenging. We continue to be prudent on our market outlook and we remain committed to reducing debt below €10 billion as soon as possible in 2013.
“Looking ahead, the fundamentals of our business are strong, helped by the positive trends of global urbanisation. The group, fully focused on its core businesses, foresees sustainable cash generating growth led by high quality positions, a unique exposure to emerging markets, and a well balanced portfolio of operating assets across the globe.”
