Displaying items by tag: France

France: Ciments Français has reported that its revenue has fallen by 2.5% to Euro3.73bn in 2012 from Euro3.82bn. It has attributed the decline to the impact of the economic crisis on construction material demand, particularly in industrialised countries.

In its press release with the results Ciments Français commented that its sales increased in most emerging countries, especially those in Asia. During the fourth quarter of 2012, the trend improved significantly in the cement and clinker sector with stable sales, following decreases over the first three quarters.

By volume the group sold 39.3Mt of cement and clinker in 2012, a decrease of 2.7%. By region sales volumes fell by 8.8% to 9.3Mt in 2012 in the group's Western Europe region. Sales also fell in the group's Emerging Europe, North Africa and Middle East region, by 4.5% to 14.9Mt. Volumes remained steady in North America at 4.2Mt and increased in Asia by 8.8% to 10.1Mt. Notably, the group preformed significantly better in the fourth quarter of 2012 for volumes sold of cement and clinker with all regions doing better compared to the same quarter of 2011.

By revenue the group's cement and clinker business fell by 1% to Euro2.51bn in 2012 from Euro2.54bn in 2011. The cement and clinker business comprised 67% of the group's total revenue in 2012. Geographically, the group's Western Europe region comprised 43% of the group's revenue, the single largest area in terms of location.

France: Vicat Group has reported Euro1.16bn in consolidated sales for its cement division in 2012, a slight rise of 1.6% from Euro1.14bn in 2011. The French multinational cement producer commented that it had benefited from growth in emerging markets and a recovery in Turkey and the United States. Overall, sales rose by 1.2% to Euro2.29bn from Euro2.27bn.

Sales in the US rose by 18.7% to Euro196m from Euro165m. This was mirrored by the cement division, which had sales of Euro91.2m in 2012. Prices remained on average lower than in 2011. In Turkey, India and Kazakhstan sales rose by 27% to Euro442m from Euro348m. Cement sales for this division were Euro376.6m, led by continued growth of 10.9% in Turkey and with new plants coming on line at Bharathi Cement in India and Jambyl Cement in Kazakhstan.

In less well performing regions, Vicat noted that cement sales fell in France by 11.6% to Euro392m in 2012. It blamed the decline on a fall of 13% in volumes due to adverse weather, completion of major projects and a more 'challenging' industry environment. However it did record a slight increase in selling prices in 2012. In Africa and the Middle East sales fell by 11.3% to Euro364m from Euro411m. Cement sales were Euro342m. Major sales decline was noted in Egypt, where sales fell by 27% in 2012 due to volume contraction. Operations were effected by a fuel shortage until October 2012 and the poor security situation. Political unrest in Mali caused problems for the Group's West African results.

Sales in Europe outside of France rose by 2% to Euro411m from Euro403m. Cement sales were Euro175.6m for this region. Notably cement sales in Switzerland rose by 5% over the year and close to 18% year-on-year in the fourth quarter. Overall the group's business contracted by 15% in Italy in 2012.

For its outlook Vicat expects to benefit gradually from investments made over the since 2007 as global economic conditions recover.

France: Lafarge has announced that it has completed a industrial-scale trial to make Aether®, its new generation clinker formulated for lower carbon cements and has 25-30% lower CO2 emissions than normal clinker.
 


The trial mobilised a team of around 100 people over a 10-day period at the group's plant in Le Teil, France. It allowed the production of 10,000t of Aether clinker and, according to a Lafarge press release, confirmed the feasibility of industrial-scale production using traditional raw materials. 



The result of several years of research by Lafarge's research and development teams, the new clinker offers similar properties to OPC and can be produced in traditional cement plants after minor process adjustments. However, it has a lower overall environmental footprint, which is derived from having a lower limestone content in the raw mix, a kiln temperature in the region of 1300°C and lower-energy grinding.


Following sustained CO2 emission reductions since the early 1990s, Lafarge says that the Aether project will help it to reduce CO2 emissions per tonne of cement by 33% by 2020, one of its Sustainability Ambitions 2020 targets.

The first Aether products will be launched in 2014.

France: Lafarge has reported that its sales have risen by 4% to Euro4.39bn in the first nine months of 2012, compared to Euro4.21bn in the same period of 2011. However, the French multinational cement producer's profits are still suffering due to restructuring charges and an impairment in the second quarter. So far in 2012 Lafarge's net income has fallen by 44% to Euro332m from Euro596m. For the third quarter of 2012 net income fell by 5% to Euro319m from Euro336m.

Lafarge's earnings before interest, taxes, depreciation and amortisation (EBITDA) for its cement business rose by 5% for the first nine months of 2012 to Euro2.22bn from Euro2.08bn in 2011. Cement sales increased by 3% to Euro7.90bn from Euro7.49bn. Cement volumes declined by 2% to 106Mt from 109Mt. For the third quarter of 2012 cement volumes declined by 4% year-on-year to 36.6Mt from 38.2Mt in 2011. Lafarge attributed this to the construction slowdown in Europe, unfavourable third quarter weather conditions in the central United States and the sale of some of its US assets to Eagle Materials in October 2012.

"Our actions to generate sales growth and cash, reduce debt and improve returns led to a fourth consecutive quarter of positive trends even in a lower growth volume environment. These actions will accelerate as we implement Euro550m of innovation and cost savings initiatives in 2013 of our four year, Euro1.75bn additional EBITDA plan," said Bruno Lafont, chairman and chief executive officer of Lafarge.

By region cement volumes declined by 10% in north America to 4.1Mt year-on-year in the third quarter of 2012 from 4.5Mt. Western Europe saw a decline of 12% in the third quarter to Euro4.2Mt from Euro4.9Mt. Lafarge's central and eastern Europe region saw a drop of 8% to 4.5Mt from 4.7Mt. In Poland the group blamed a slowdown on the aftermath of the European Football Championship in June 2012. In Russia a production 'limitation' at a plant near Moscow caused problems. In the 'Middle East and Africa' region volumes fell by 4% to 10.8Mt from 11.4Mt.

In Latin America cement volumes rose by 5% to 2.4Mt from 2.3Mt. Cement sales in the region were led by a 12% boost in Brazil. In Asia volumes rose by 3% to 10.6Mt from 104Mt. Lafarge singled out a 25% increases in domestic cement sales in India, 11% in the Philippines and 14% in Indonesia. Despite increases in volumes in China, Lafarge noted that cement sales were impacted by slower construction growth and increased competition.

In its outlook Lafarge concluded that it expects to see cement demand growing from 1-4% in 2012 driven by emerging markets. The group will hold its target of reducing net debt to below Euro10bn as soon as possible in 2013.

France: Vicat has reported that its sales for the nine months ending 30 September 2012 remained flat year-on-year at Euro1.73bn. The French construction company reported sales of Euro879m for its cement business for the period, compared to Euro873m for the first nine months in 2011.

Consolidated sales for the third quarter of 2012 were Euro602m, a rise of 3.5% year-on-year. The breakdown of nine-month sales by business shows that the contribution of the cement business remained stable at 52.6% of total operational sales, as opposed to 52.5% in the first nine months of 2011.

"Vicat's performance in the first nine months of 2012 confirms the wisdom of the group's cautious development strategy. Investment under the 2010 performance plan and acquisitions in India and Kazakhstan enabled Vicat to achieve growth in business volumes in the third quarter, despite a macroeconomic environment that remains mixed," said Vicat's management board in a statement.

Vicat's cement business sales dropped in France, Egypt and West Africa. In France sales fell by 11.8% due to poor weather in early 2012, the end of some large projects and the weaker economic and industry environment. In Egypt consolidated sales fell by 30.3%. Operational performance in Egypt continued to be affected by problems with security and fuel supplies. Vicat's gas supply was cut off due to maintenance work on a pipeline, while the whole of Egypt experienced a serious shortage of fuel oil. Maintenance work completed in early October 2012. In West Africa consolidated sales fell by 6.7% and cement volume remained flat.

In the US the company's cement business posted an increase in its consolidated sales which were up by 21.1%. This increase was driven by strong growth in sales volumes in California and the Southeast region. In Turkey, India and Kazakhstan consolidated sales grew by 11.1%. This was the result of a sharp upturn in the market, which began in the second quarter and continued in the third.

In India, sales were Euro118m in the first nine months of 2012, a rise of 34.6%. Vicat maintained its strong performance in India, with the ongoing build-up of production at Bharathi Cement's modern plant. In the first nine months of 2011 cement volumes were almost 1.9Mt. In Kazakhstan, the build-up of operational and commercial activity at the Jambyl Cement plant continued. Revenue in the first nine months was Euro51m compared to Euro20m in 2011. This performance was driven by very strong volume growth, with more than 0.77Mt sold in the first nine months of 2012 as a result of major infrastructure and housing projects.

France: Carlos Espina has been appointed as director of research and development for the Lafarge Group, with effect from 1 October 2012. Espina was previously the chief executive officer at ArcelorMittal Méditerranée, a position he had held since July 2009.

He began his career in the UK as a researcher at AEA Technology. In 1995 he joined the research and development (R&D) Centre of Aceralia Corporación Siderúrgica as manager of the product applications engineering department, before becoming vice president of intellectual property, knowledge management and artificial intelligence upon the merger with Arcelor in 2002. Within the Arcelor Mittal Group, he successively held the positions of vice-president in charge of R&D, Europe, and vice-president in charge of R&D, automotive.

Carlos Espina will be based at Lafarge's Research Centre near Lyons, with more than 250 researchers of 12 different nationalities. He holds a degree from Oviedo College of Mines in Spain.

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.