Lafarge half year results

4 September 2001

The Board of Directors of Lafarge met on September 3, 2001, under the chairmanship of Bertrand Collomb, to close the accounts for the half year ending June 30, 2001.

The key factors impacting the half-year results to June 30, 2001 are as follows:

  • The results do not include the Blue Circle acquisition, which was successfully completed on July 11, 2001.
  • The impact of the divestment of the majority of the Specialty Products Division on sales and operating income amounted to €552 million and €44 million respectively.
  • Sales for the first half were up by 1.9% on a comparable basis but marginally down overall by 1.4%.
  • Comparison with the same period last year should be made in the context of the exceptionally favourable seasonal conditions encountered in the first half of 2000.
  • Operating Income

    Strong performance of the Cement Division with operating income growing by 16% and the successful control of energy costs.

    - Aggregates and Concrete results remained at 2000 levels on a comparable basis but were down overall due to the increased seasonality resulting from recent acquisitions in North America.

    Roofing results were down due to persistently very poor construction market conditions in Germany. Gypsum results were down due to the collapse in North American wallboard prices.

    Operating income from emerging markets grew by 64%.

  • Net Income, Group Share benefited in particular from a reduced effective tax rate and dividends from Blue Circle and Cimpor.
  • Net Income per share was reduced as result of the rights issue in February 2001. This part of the financing of the acquisition of Blue Circle created 14 million new shares while Blue Circle results were not consolidated in the same period.
Consolidated financial statements as of 30 June 2001
€ million June 30, 2001 June 30, 2000 % Change
Sales 5,578 5,656 -1,4%
Operating Income 675 787 -14%
Net Income 242 250 -3%
Net Income per share € 1.97 2.35 -16%
Consolidated sales as of 30 June 2001
  June 30, 2001
€ Million
June 30, 2000
€ Million
Variation Like for like
Cement 2,245 2,045 +9.8% +6 %
Aggregates & Concrete 1,952 1,682 +16% +3.2%
Roofing 728 768 -5.2% -8.6%
Gypsum 540 504 +7% -4.0%
Others 113 657 -82.7% +5 %
TOTAL 5,578 5,656 -1.4% +1.9%
Current operating income as of 30 June 2001
  June 30, 2001
€ Million
June 30, 2000
€ Million
Variation Like for like
Cement 529 458 +16% +14%
Aggregates & Concrete 73 90 -19% -1%
Roofing 52 97 -46% -43%
Gypsum 3 57 -95% -67%
Others 18 85 -79% -
TOTAL 675 787 -14% -5%

(These figures do not include Blue Circle, which is consolidated with effect from July 11, 2001).

Despite the prevailing economic uncertainty, we are not experiencing a significant weakening in any of our markets except Germany. In this context and with Blue Circle integrated from July 11, we remain confident that overall we will achieve respectable growth of our results in 2001.

Beyond 2001, we expect to benefit fully from the positive impacts of the Blue Circle acquisition. Furthermore, we expect our strong emerging market positions to allow us to offset regional variations and to deliver further significant growth.

Statements made in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors") which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonality of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's Reference Document filed with the French COB under the reference number D02-162 and updated under the reference number D02-162/A1, and its annual report on Form 20-F filed with the Securities and Exchange Commission in the USA. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.

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