Displaying items by tag: France

France: Lafarge has reported that its net profit fell in the first half of 2012 due to troubles in its European markets, mainly in central and eastern Europe, where the construction industry slumped Lafarge recorded an impairment of Euro200m on its Greek assets alone. The French cement group's net income fell from Euro260m in the first half of 2011 to Euro13m in 2012, a drop of 95%.

Sales rose by 5% to Euro7.61bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 8% to Euro1.52bn, boosted by increases in emerging markets. In addition to the impairment on Greek assets, Lafarge also recorded a Euro148m charge related to the company restructuring in the first half of 2012.

"Economic conditions remain challenging in many parts of the world and we remain prudent on our outlook," said Lafarge's chief executive Bruno Lafont. "Even in a lower growth volume environment, our actions to generate sales growth and cash, and to improve returns, led to a third consecutive quarter of positive trends." He confirmed that he expects the cement industry to grow between 1% and 4% in 2012, mainly driven by emerging markets. Lafarge expects higher pricing for the year and cost increases to be slower than in 2011.

By region on a like-for-like basis, cement volumes increased in North America by 14% to 5.7Mt and sales increased by 16% to Euro1.4bn. In Western Europe volumes decreased by 11% to 8.3Mt and sales decreased by 10% to Euro1.62bn. Here sales decreased by 6% to 7% in France and the UK, where it was blamed on adverse weather and a slowdown in advance of the London 2012 Olympic Games, and by 28% to 30% in Spain and Greece.

In Central and Eastern Europe volumes decreased by 7% to 5.9Mt, yet sales remained stable increasing by 1% to Euro561m. In both Russia and Poland higher pricing counteracted a drop in volume. In Middle East and Africa volumes decreased by 2% to 23.4Mt and sales increased by 4% to Euro2.2bn. Notably, Nigeria saw a 49% increase in sales due to a new line started in 2011 and Egypt saw volumes fall by 11% due to limited gas supply. In Latin America volumes increased by 5% to 4.5Mt and sales increased by 12% to Euro474m. In Asia volumes increased by 5% to 21.9Mt and sales increased by 11% to Euro1.36bn. Notably, activity slowed in India yet sales still rose by 25%. In China sales were impacted by slower construction growth, with volumes remaining stable but prices decreased.

Lafarge said that its debt stood at Euro12.55bn at the end of June 2012, down from Euro14.26bn a year earlier. The company's debts peaked at Euro17bn in 2008 and they stem from a series of acquisitions culminating in the Euro8.8bn takeover of Egyptian rival Orascom Cement. Lafarge plans to raise as much as Euro1bn in asset sales in 2012, though it hasn't said which units it may sell.

Lafarge made Euro72m from divestments in the first half of 2012. The company has also cut investment and reduced the number of executives. In June 2012, the company announced it would cut its costs by Euro1.3bn by 2015.

France: Under its Euro Medium-Term Note programme, Lafarge has today issued a Euro500m bond with a 7 year maturity and fixed annual coupon of 5.875% to institutional investors. While the French cement and building materials giant had said that it had no immediate refinancing needs, the proceeds of this bond issuance will reinforce the already strong liquidity position of the group.

The settlement and issuance of the bond are expected to occur on 9 July 2012.

France: On 22 June 2012 Lafarge announced that it expected to cut a further 97 jobs in France as part of a plan to merge its three French divisions, based around its different product lines, into one national unit to be headquartered in the Paris region.

The move came just a week after the cement maker unveiled plans to cut costs by Euro1.3bn and boost profits over the next four years as it seeks to cut its debt and regain an investment-grade rating. At the start of 2012 the group, which employs a total of 68,000 people around the globe, said that it would cut 460 jobs worldwide, including 90 in France, as part of corporate reshuffling.

France: Lafarge intends to cut its costs by Euro1.3bn from 2012 to 2015. The French-company announced that it is speeding up cost-cutting measures, boosting sales revenue and cutting net debt over the next four years in a bid to improve its profitability.

At least Euro400m of cost savings are scheduled for 2012 and at least Euro350m are planned for 2013. The plan seeks to raise Euro450m from innovation and efficiency gains and boost earnings before interest, taxes, depreciation and amortization (EBITA) by Euro1.75bn. As a result of the higher EBITDA, Lafarge will cut its net debt below Euro10bn 'as soon as possible' in 2013.

The company seeks to boost return on capital employed to above 8% by 2015.
"All our actions will contribute to higher cash generation, improved returns, and cash flow from operations to net debt of 28% to 30% no later than 2015," Lafarge said in a statement.

Lafarge has struggled over the past few years from its heavy debt load and the global economic downturn. Its debt peaked at Euro17bn in 2008, following a series of acquisitions culminating in the Euro8.8bn takeover of Egyptian rival Orascom Cement. The company had already managed to reduce its debt to Euro12.36bn at the end of the first quarter of 2012.

Lafarge Chief Executive Bruno Lafont reiterated the company will raise Euro1bn in asset sales in 2012 and doesn't plan any major acquisition over the coming years. He added that the company's ultimate goal is to raise dividends and resume investing once its financial structure is stabilised.

France: Gérard Lamarche has been appointed as a director at Lafarge at its Ordinary General Meeting in Paris on 15 May 2012.

Lamarche graduated from the University of Louvain-la-Neuve with a Bachelor's degree in Economic Sciences and a specialisation in Business Administration and Management. He also completed the Advanced Management Program for Suez Group Executives at the INSEAD Business School.

He began his professional career in 1983 with Deloitte Haskins & Sells in Belgium, and became a mergers and acquisitions consultant in the Netherlands in 1987. In 1988, he joined the Venture Capital Department of Société Générale de Belgique as an investment manager. He became the special projects advisor to the president and secretary of the Suez board of directors in 1995 where he later became the group's senior vice president in charge of planning, control and accounts management. He was appointed senior executive vice president – finance of the Suez Group in March 2004, becoming executive vice president - finance of GDF SUEZ, and member of the management and executive committees of the GDF SUEZ Group in July 2008.

Lamarche is a director of Groupe Bruxelles Lambert (Belgium) and has been a managing director since January 2012. Lamarche is also a Director of Total and Legrand.

France: Lafarge has announced its financial results for the first quarter of 2012, which show a 'solid' rise in sales and operating results. Sales increased for the quarter, up by 5% to Euro3.35bn for the first quarter, driven by improved pricing across all product lines and higher cement volumes in emerging markets.

Earnings before interest, tax, depreciation and amortisation (EBITDA) and current operating income rose in the quarter, driven by higher activity in Middle East and Africa, Asia, Latin America and North America. It rose by 8% to Euro516m year-on-year. Lafarge also reported that it achieved Euro70m of cost savings and is on track to reach at least Euro400m for the whole of 2012.

"While the first quarter results traditionally represent a 'small' quarter and we remain cautious for the year, the group was encouraged by the higher revenues and EBITDA growth," said Bruno Lafont, Chairman and CEO of Lafarge. "We successfully launched our new cost reduction programme and it is positive that price actions are taking hold to address cost inflation.

"The group is focused on debt reduction, strict cost discipline, the maximisation of its cash flows and the achievement of at least Euro1bn of strategic divestments this year," continued Lafont. "The management reorganisation accelerates the group's actions towards efficiency and organic growth."

In North America Lafarge recorded an EBITDA loss of Euro46m, an 38% improvement on the Euro75m loss in the first quarter of 2011. In western Europe, its EBITDA was Euro94m, down by nearly a third on the same quarter of 2011 when the EBITDA was Euro151m. Central and eastern Europe recorded a loss in terms of EBITDA of Euro14m (compared to a Euro9m loss in 2011), Latin America recorded an EBITDA of Euro59m (Euro53m in 2011) and Asia had an EBITDA of Euro108m for the quarter (Euro85m in 2011). Lafarge's most profitable region was the Middle East and Africa, which saw a first quarter EBITDA of Euro315m.

Lafarge said that it continues to see cement demand moving higher and maintained its market growth estimate of 1-4% in 2012 compared to 2011. Emerging markets continue to be the main driver of demand for Lafarge, which said that it benefits from its well balanced geographic spread of high quality assets. The group also said that it expected higher pricing for 2012 and that cost inflation will increase at a lower rate than in 2011.

France: The French High Court has decided to block Lafarge's project to close its plant in Frangey, northern France, until 25 November 2012. The Frangey facility employs 74 workers and had previously been slated for closure in 2012.

The planned closure is part of a much larger restructuring plan at the building materials' giant, which was also annulled by the High Court. However, the court said that the fundamental economic case behind closing the Frangey plant was valid. The group had explained that its decision to shut down the plant was due to overcapacity and high production costs.

The management of Lafarge will now propose a new restructuring plan to the staff representatives starting from November 2012.

France: The board of directors of Ciments Français, part of the Italcementi Group, has examined and approved the audited annual and consolidated accounts as of 31 December 2011, which show a net consolidated profit of Euro274m, a 13.7% drop year-on-year.

Cement sales volumes for the entire year were down by 1.4% at 42.4Mt. Ciments Français Cement sales improved in France, North America, Morocco and India but decreased in Egypt due to the political crisis there. An overall fall in demand, strong inflation on fuel prices and negative translation effects resulted in deterioration in the company's operating results. These impacts were only partly mitigated by efficiency measures implemented throughout the year.

As of 31 December 2011, Group consolidated revenues were Euro3.89bn, down by 3.8% year-on-year. Its recurring earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to Euro702m, down by over 20% year-on-year. Earnings before interest and tax dropped by 38% to Euro309m following recognition of Euro359m in depreciations and Euro53.4m in impairment losses, mainly in crisis-hit Spain and Greece.

Group investments in industrial and intangible assets amounted to Euro301m as of 31 December 2011, down by 25.6% compared to 31 December 2010. They mainly related to the strengthening of production in France, Belgium and Egypt and an increase of production capacity in India and Morocco.

A tight management of cash flows, the disposal of assets in Turkey and the sale of subsidiary Axim contributed to strengthen Ciments Français' net financial position. At the end of December 2011, its net financial debt was reduced by Euro390m to Euro1.02bn compared to Euro1.41bn as of 31 December 2010.

Regarding 2012 Ciments Français reported that the markets in which it operates should be more stable. Sales volumes are expected to stabilise at a level similar to that of 2011, increasing in North America and Morocco while declining in southern Europe. Egypt remains a source of uncertainty. Prices are likely to trend more positively and partially offset the rise in energy costs and the impact of inflation on fixed costs. Additionally, the efficiency programs launched in 2011 should increase operating results in 2012.

The group will initiate a new cycle of investments in 2012 related to its industrial facilities, mainly in Gulbarga, India and Bulgaria. In Morocco, the group expects a new expansion phase after the commissioning of the Ait Baha plant.

France: Ciments Français, part of the Italcementi Group, has announced its consolidated revenues and sales results for the year ending 31 December 2011. These show that, in a difficult economic environment, group sales decreased marginally in its cement sector. Cement and clinker sales were down by 1.4% year-on-year to 42.4Mt in 2011 but sales increased in France, North America, India and Morocco.

In western Europe the company sold 9.9Mt of cement and clinker, an increase of 1.3% year-on-year. In North America it sold 4.2Mt, a 5.1% improvement on 2010. In 'emerging' Europe, north Africa and the Middle East it sold 16.1Mt of cement and clinker, 5.4% less than in 2010. In Asia the company sold 11.1Mt, up by 0.3% compared to 2010.

In the fourth quarter of 2011 Ciments Français' sales were down by 1.7% year-on-year at 10.2Mt. The group sold 2.2Mt of cement and clinker in western Europe (+0.7% year-on-year), 1.1Mt in North America (+7.4%), 4.0Mt in emerging Europe, north Africa and the Middle East (-3.0%) and 2.6Mt in Asia (-5.0%) during the final quarter. Sales in Thailand took a large hit due to the severe flooding there in late 2011.

The group's total consolidated revenues for 2011 across all of its business units came in at Euro3.89bn, which it attributed to reduced volumes and currency fluctuation effects in some countries, notably Egypt, North America and India. Revenues improved in France, Belgium and Thailand.

Its cement segment took in Euro2.59bn, a drop of nearly 8% compared to 2010. Sales were highest in western Europe (Euro1.27bn), followed by emerging Europe, north Africa and the Middle East (Euro1.03bn), Asia (Euro499.5m) and North America (Euro405.1m).

France: Lafarge has begun a consultation procedure regarding the proposed reorganisation of its corporate functions and shared resources in France. This follows from its 21 November 2011 announcement that it was planning a restructuring along geographical lines rather than its product types. Lafarge has now said that the proposed changes would result in 460 job losses, 90 of which would be in France. It said that voluntary redundancy plans would help it to avoid compulsory job losses.

Lafarge has said that the reorganisation will be structured around an Executive Committee consisting of a 'Performance' function, chiefly responsible for the technical centers and engineering, IT systems and the leadership of commercial and industrial performance; an 'Innovation' function, chiefly responsible for research and development, marketing and transformation; three Executive Vice Presidents, whose mission will be supervising 42 operating entities and support functions.

The group says that the shift in its centre of gravity towards countries would lead to a decentralisation ofcorporate functions. As a result, the outline of the new organisation that is being announced today entails a reduction in staff numbers. Lafarge says that the new group organisation will enable it to be more focused on the needs of its markets and its customers and will enable it to accelerate the development of the group through organic growth and innovation.