Lafarge turns up the volume

Increased volumes in the final three months of 2010 have helped 725 Lafarge to record a 9% rise in sales to €3.96billion for the period, while operating income was up 7% to €530million. This final quarter improvement bolstered Lafarge’s full year results with a 2% increase in sales to €16.17billion, compared to 2009, and a 1% fall in operating income at €2.44billion.

Lafarge chairman and CEO Bruno Lafont said, “While 2010 was a tough year for the cement sector as a whole, I am encouraged by the return to cement volume growth in the fourth quarter and the successful cash generation accomplishments of our operating teams in the last two years.

“The steps we have taken in 2010, ranging from structural cost savings to strategic investments in growing markets such as Brazil, will provide the foundation for further improvement and growth as we enter 2011. It will also allow the group to accelerate deleveraging and reduce its debt by at least two billion euro in 2011. We will get the full benefits from volume growth thanks to our new cement capacities and the overall quality and strength of our portfolio of assets."

The group estimates cement demand in its markets to grow between 3 to 6% in 2011 versus 2010. Emerging markets continue to be the main driver of demand and Lafarge benefits from its well-balanced geographic spread of high quality assets. For developed markets, the Group expects that demand will continue to slowly recover.