France: Lafarge's financial results for 2013 have been rescued by an improved fourth quarter year-on-year. It reported a 2% decrease in sales year-on-year to Euro3.71bn for the fourth quarter of 2013 fromEuro3.81bn in 2012. Overall sales for 2013 fell by 4% to Euro15.2bn from Euro15.8bn. The French-based multinational building producer reported increasing sales on a like-for-like basis for both the final quarter and the full year. It attributed the improvement to growing sales volumes, ongoing growth in most emerging markets, the recovery in the United States and stabilisation in Europe.
"In the fourth quarter we saw much more positive operational trends, accelerating compared to the third quarter, while exchange rates continued to be adverse," said Chairman and Chief Executive Officer of Lafarge, Bruno Lafont.
Sales volumes of cement for the 2013 financial year fell by 3% year-on-year to 137Mt from 141Mt. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 9% to Euro3.10bn from Euro3.42bn.
By region, sales volumes of cement fell in North America by 12% in 2013 to 11.3Mt from 12.8Mt but the residential sector in the US recovered. In Western Europe they fell by 14% to 14Mt from 16.4Mt but the French construction market was described as 'resilient' and sales rose in the UK. In Central and Eastern Europe they fell by 6% to 12.5Mt from 13.2Mt, with particular problems in Poland and Romania. In Middle East and Africa they fell by 2% to 44.4Mt from 45.2Mt with problems noted in Egypt, Morocco and Kenya. In Latin America they fell by 4% to 8.8Mt from 9.2Mt affected by 'subdued' growth in Brazil. Although on like-for-like basis they rose by 1%. In Asia cement sales rose by 3% to 45.8Mt from 44.3Mt led by a strong market in the Philippines despite Typhoon Haiyan.
For its outlook Lafarge expects to sees cement growth in its markets of between 2 to 5% in 2014 versus 2013 with markets benefiting from recovery in the US, stabilisation in Europe and on-going growth in emerging markets.
