Lafarge's net loss has grown by 15% year-on-year for the first quarter of 2014, from €117 million in 2013 to €135 million in 2014 with the company blamed the result on the 'seasonality' of its business and the effect of the variations of the net-of-tax gains and losses on divestments. "Our first quarter results confirmed the positive trends experienced at the end of 2013. Our volumes were supported by continuing growth in emerging markets and the progressive improvement in several European markets. North
Lafarge’s net loss has grown by 15% year-on-year for the first quarter of 2014, from €117 million in 2013 to €135 million in 2014 with the company blamed the result on the ‘seasonality’ of its business and the effect of the variations of the net-of-tax gains and losses on divestments.
“Our first quarter results confirmed the positive trends experienced at the end of 2013. Our volumes were supported by continuing growth in emerging markets and the progressive improvement in several European markets. North America was affected by a harsh winter but the underlying market trends are positive. Our outlook for the year is confirmed and we expect to see cement demand growth in our markets of between 2% to 5% in 2014,” says Bruno Lafont, chairman and chief executive of Lafarge.
Overall sales across all business lines fell by 2% year-on-year to €2.63 billion from €2.68 billion while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 21% to €343 million from €342 million. An improvement in EBITDA in the group’s western Europe region was noted.
For its cement business, cement sales volumes rose by 8% to 25.9 million tonnes from 23.9 million tonnes and despite this rise in volumes, cement sales remained static at €365 million for the quarter.
By region for its cement business, Lafarge reported static sales volumes for cement year-on-year for the quarter in North America due to adverse weather. Sales volumes rose by 7% to 2.6 million tonnes in western Europe with notable improvements recorded in Spain and Greece. Volumes rose by 19% to 1.9 million tonnes in central and eastern Europe with increases in Poland and Romania but a fall in sales in Russia. In the group’s Middle East and Africa region cement sales volumes rose by 15% to 10.5 million tonnes. In Latin America sales volumes fell by 15% to 1.9 million tonnes and this was impacted by group divestment and deconsolidation in Honduras and Mexico, despite increase sales volumes in Brazil. In Asia sales rose by 7% to 7.5 million tonnes.
