Resilient second quarter for Lafarge
CEO says results hold up in an environment marked by a conjunction of unfavourable circumstances
LAFARGE say EBITDA showed good resilience during the second quarter of 2013, despite prevailing adverse weather conditions, most notably in North America.
Including performance and innovation measures, which generated €100 million and €60 million additional EBITDA, respectively, during the quarter, the Group reported an 8% fall in EBITDA to €922 million (–3% like for like) for the three months to 30 June, on sales that were down 3% to €4,112 million (stable on a like-for-like basis).
Over the same period operating income fell 11% to €667 million (–4% like for like), while net income Group share, at €201 million, compared favorably with €39 million in the second quarter of 2012.
Net debt at the end of June 2013 decreased by €0.7 billion compared with the end of June last year, reflecting strict control of investments and working capital optimization, which supported a 35% free cash flow increase during the quarter.
Cement sales during the second quarter of 2013 were down 5% at 36.5 million tonnes, while aggregate sales were stable at 50.9 million tonnes and ready-mixed concrete volumes were down 4% at 8.3 million cubic metres.
With the recently announced divestment of Lafarge’s US gypsum operations, the Group has secured €1.5 billion since the beginning of 2012, of which €0.9 billion will be received in the second half of this year.
The Group is aiming to deliver additional EBITDA of €650 million in the year through its performance and innovation measures, and has an objective to reduce net debt to below €10 billion in 2013, and to below €9 billion in 2014.
Bruno Lafont (pictured), chairman and chief executive officer of Lafarge, said the results in the second quarter ‘resisted in an environment which was marked by a conjunction of unfavorable circumstances’.
‘We increased prices and performance and innovation results are in line with our 2013 €650 million additional EBITDA target,’ he commented. ‘Taking into account first-half volumes, we foresee growth in cement demand in our markets of 0–3% in 2013, which implies more positive trends in the second half.’
