Lafarge (LR)

2012 Shareholders' Meeting

Tuesday May 15th 2012 04:15:13 AM

Lafarge's ordinary shareholders' meeting, which was held in Paris on May 15, 2012 under the chairmanship of Bruno Lafont, approved all resolutions submitted for their vote.

The shareholders' meeting approved a dividend of €0.50 per share and a loyalty dividend of €0.55 per share. The dividend will be paid on July 6, 2012 (with an ex-dividend date on July 3, 2012).

The shareholders' meeting also ratified the cooptation of Mr. Ian Gallienne (and the renewal of his term of office) and approved the appointment of Mr. Gérard Lamarche to the Lafarge Board of Directors. The meeting also renewed the terms of office of Mssrs Paul Desmarais Jr., Jérôme Guiraud, Michel Rollier and Nassef Sawiris as Directors. All appointments and renewals to the Board of Directors are for a period of four years.

In addition, the Group's statutory and alternate auditors (from the Deloitte and Ernst & Young networks) have been renewed for a period of six years.

NOTES TO EDITORS
Located in 64 countries with 68,000 employees, Lafarge is a world leader in building materials, with top-ranking positions in its Cement, Aggregates & Concrete businesses. In 2011, Lafarge posted sales of 15.3 billion euros.
For the second year in a row, Lafarge ranked amongst the top-10 of 500 companies evaluated by the "Carbon Disclosure Project" in recognition of their strategy and actions against global warming. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Results as of March 31, 2012

Thursday May 3rd 2012 08:57:23 PM

First-quarter key figures

• Sales up 5% to €3,353m
• EBITDA up 8% to €516m
• Current operating income up 28% to €267m
• Net income group share improved to €18m (€0.06 per share), excluding restructuring charges

Note that first quarter results reflect seasonality, traditionally leading to lower net results relative to other quarters in the year.

Group Highlights

• Sales increased for the quarter, driven by improved pricing across all product lines and higher cement volumes in emerging markets.
  
• EBITDA and current operating income rose in the quarter, driven by higher activity in Middle East and Africa, Asia, Latin America, and North America.
• The Group achieved €70 million of cost savings and is on track to reach at least €400 million for the year.
• Net income group share and earnings per share improved when excluding the first quarter 2012 restructuring charges of €94 million taken as part of implementing the cost reduction program.
• Strong liquidity improved through the extension of a credit facility that brings total undrawn back-up committed facilities to €3.4 billion with an average maturity of about 3 years.
• The UK Competition Commission approved the proposed joint venture between Lafarge's UK operations and Tarmac, subject to a number of conditions which both parties are confident can be met.
• The Group implemented its new country-based organization in the first quarter which will accelerate organic growth and innovation as well as reinforce efficiency.

Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said:

"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. We successfully launched our new cost reduction program 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 maximization of its cash flows, and the achievement of at least €1 billion of strategic divestments this year. The management reorganization accelerates the Group's actions towards efficiency and organic growth."

Outlook

Overall the Group continues to see cement demand moving higher and maintains its estimated market growth of between 1 to 4 percent in 2012 versus 2011. Emerging markets continue to be the main driver of demand and Lafarge benefits from its well balanced geographic spread of high quality assets.

We expect higher pricing for the year and that cost inflation will increase at a lower rate than in 2011.

Lafarge: Availability of the 2011 Registration document (Document de référence)

Wednesday April 11th 2012 09:34:30 AM

Lafarge's 2011 Registration document (Document de référence) has been filed on April 10, 2012 with the Autorité des Marchés Financiers (AMF).

The document is available to the public in accordance with the provisions of regulations currently in force.

It can also be found in the "Shareholders > Regulated Information" section of our website www.lafarge.com, and on the AMF's website (www.amf-france.org).

The Registration document includes in particular:

• the 2011 annual financial report ;
• information on fees paid to the statutory auditors for the financial year 2011;
• the report of the Chairman of the Board of Directors on internal control procedures and on corporate governance and the auditors' reports on the same;
• a description of the shares buy back program.

Notes to editors
Located in 64 countries with 68,000 employees, Lafarge is a world leader in building materials, with top-ranking positions in its Cement, Aggregates & Concrete businesses. In 2011, Lafarge posted sales of 15.3 billion euros.
For the second year in a row, Lafarge ranked amongst the top-10 of 500 companies evaluated by the "Carbon Disclosure Project" in recognition of their strategy and actions against global warming. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge extends syndicated credit facility for 1.2 billion euros to July 2015

Tuesday March 20th 2012 04:34:39 AM

Lafarge successfully extended its syndicated credit facility by two years from July 2013 to July 2015 for a total amount of 1.2 billion euros. The extended facility, supported by 24 lenders, complements Lafarge's bilateral lines of 2.2 billion euros and brings total committed credit facilities to 3.4 billion euros. In total, these lines have an average maturity of 2.8 years and do not include any default clauses linked to financial covenants, credit ratings or Material Adverse Change (MAC).

Notes to editors
Located in 64 countries with 68,000 employees, Lafarge is a world leader in building materials, with top-ranking positions in its Cement, Aggregates & Concrete businesses. In 2011, Lafarge posted sales of 15.3 billion euros.
For the second year in a row, Lafarge ranked amongst the top-10 of 500 companies evaluated by the "Carbon Disclosure Project" in recognition of their strategy and actions against global warming.  With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge : Ordinary General Meeting on May 15, 2012 - Availability of preparatory documentation - Governance and Dividend

Friday March 16th 2012 01:00:46 PM

Lafarge informs its shareholders that they are called to an Ordinary General Meeting on Tuesday May 15, 2012 at 17.00 pm (at the first convocation), at Salle Pleyel, 252 rue du Faubourg Saint-Honoré, 75008 Paris (France).
 
Availability of preparatory documentation for the General Meeting

The Notice of meeting will be published in the Bulletin des Annonces Légales et Obligatoires (BALO) on March 19, 2012.

The notice of meeting contains the agenda of the meeting, the draft resolutions, the Board's report upon such draft resolutions as well as information on how to attend and to vote at this shareholders meeting and will be available from March 19, 2012 in the section "Shareholders & Investors" of the Group's website. Other information relating to the meeting will also be available on this website.

All documents and information relating to the meeting will be available to shareholders under the conditions specified by current laws and regulations.

General Meeting - Governance and dividend

Shareholders will be asked in particular to:

• set the normal dividend at euro 0.5 per share and the loyalty dividend at euro 0.55 per share, with Lafarge shares traded ex-dividend on and after July 3, 2012 and the dividend payment date on July 6, 2012:
  
  
  • Dividend ex date : July 3, 2012
  • Dividend payment date : July 6, 2012.

• renew the term of office of Mssrs Paul Desmarais Jr., Ian Gallienne, Jérôme Guiraud, Michel Rollier and Nassef Sawiris.

• appoint Mr. Gérard Lamarche as a Director.

 
Mr. Gérard Lamarche is a Director of Groupe Bruxelles Lambert (Belgium), of which he is also Managing Director since January 1, 2012. He 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 and took part in the 1998-99 Wharton International Forum, Global Leadership Series. He began his professional career in 1983 with Deloitte Haskins & Sells in Belgium, and became M&A Consultant in the Netherlands in 1987. In 1988, he joined the Venture Capital Department of Société Générale de Belgique as Investment Manager. He was promoted to Controller in 1989, and in 1992 was appointed Advisor to the Director of Strategic Planning. He became Special Projects Advisor to the President and Secretary of the Suez Board of Directors (1995-1997) and participated in the merger between Compagnie de Suez and Lyonnaise des Eaux (1997); he was later appointed the new Group's Senior Vice President in charge of Planning, Control and Accounts Management. In July 2000, Mr. Gérard Lamarche joined NALCO (American subsidiary of the Suez Group and world leader in industrial water treatment) as Director, Senior Executive Vice President and CFO. He was appointed Senior Executive Vice President - Finance (CFO) of the Suez Group in March 2004, becoming Executive Vice President, CFO of GDF SUEZ, and member of the Management and Executive Committees of the GDF SUEZ Group in July 2008.
Mr. Gérard Lamarche is also a Director of Total and Legrand.

Notes to editors
Located in 64 countries with 68,000 employees, Lafarge is a world leader in building materials, with top-ranking positions in its Cement, Aggregates & Concrete businesses. In 2011, Lafarge posted sales of 15.3 billion euros.
For the second year in a row, Lafarge ranked amongst the top-10 of 500 companies evaluated by the "Carbon Disclosure Project" in recognition of their strategy and actions against global warming. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Results as of December 31, 2011

Thursday February 16th 2012 08:00:08 PM

Fourth quarter key figures

• Sales up 5% to € 3,813m (+7% like for like)
• Current operating income up 3% to € 538m (+1% like for like)
• Net income group share declined to (€ 3m)
• Net earnings per share declined to (€ 0.01)

Full year key figures

• Sales up 3% to € 15,284m (+5% like for like)
• Current operating income down 9% to € 2,179m (-9% like for like)
• Net income group share down 28% to € 593m
  
• Net earnings per share down 28% to € 2.07
• Dividend of € 0.50 per share, subject to AGM approval

Note: Sales and Current operating income are restated for 2011 and 2010 to reflect the reclassification of the Gypsum activities to discontinued operations.

Group Highlights

• Current operating income grew in the fourth quarter from higher sales volumes, higher pricing, and cost cutting measures. For the year, higher cost inflation and the negative impact of foreign exchange lowered overall results.
• The Group successfully achieved its €2 billion net debt reduction target and strengthened its already solid liquidity. The strategic divestment of Gypsum assets generated a net gain of €466 million.
• Cost savings accelerated at the end of 2011, with €100 million delivered in the fourth quarter achieving €250 million for the full year, well above the €200 million target. As part of the announced program to reduce costs by €500 million, the Group plans to reach at least €400 million of savings in 2012.
• Net earnings were impacted by a non-cash goodwill write-off of €285 million, mainly in Greece.
• The Group will implement in 2012 its new country-based organization project to accelerate organic growth and innovation and reinforce efficiency.

 
Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said:

"In 2011 the Group met its debt reduction target of 2 billion euros despite a very challenging environment. Additional debt reduction will come in 2012 as the Group maximizes its operational cash flows. We will drive a €500 million cost reduction program, implement price actions as a response to cost inflation, further reduce capital expenditures to €800 million, execute strategic divestments of more than €1 billion, and propose a reduction of the dividend to 50 cents per share.

Further to the divestment of a majority of the gypsum assets and the fundamental changes to the management structure, the Group has fully refocused on its core businesses of cement, aggregates and concrete. This strategic shift will accelerate growth and innovation."

Outlook

Overall the Group sees cement demand moving higher and estimates market growth of between 1 to 4 percent in 2012 versus 2011. Emerging markets are the main driver of demand growth and Lafarge benefits from its well balanced geographic spread of high quality assets.

We expect higher pricing for the year and that cost inflation will increase at a lower rate than in 2011.

Lafarge presents its proposed reorganization of the Group’s corporate functions

Thursday February 2nd 2012 04:09:03 AM

In the context of the new organization project announced on November 21, 2011

Lafarge presents its proposed reorganization of the Group's corporate functions.

This proposal would result in 460 job losses, 90 of which are in France with a voluntary redundancy plan avoiding compulsory redundancies.

Lafarge has today begun a procedure of information and consultation regarding the proposed reorganization of its corporate functions and shared resources in France, to align with the Group's new planned organization made public on November 21 last year.

According to these plans, the Group would be reorganized 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 R&D, marketing and transformation;
• three Executive Vice Presidents Operations, whose mission will be supervising 42 operating entities;
• and support functions (Human Resources, Finance, Strategy and Communications), which will focus on providing strategic guidance.

The shift in the Group's center of gravity towards the countries would lead to a decentralization of corporate functions. As a result, the outline of the new organization that is being announced today would entail a reduction of 460 corporate posts worldwide, of which 90 are in France. Once the requisite procedures of information and consultation have been completed, Lafarge intends to put a voluntary redundancy scheme in place in France.

The new Group organization will enable Lafarge to be more focused on the needs of its markets and its customers, and to accelerate the development of the Group through organic growth and innovation.

 

Notes to editors

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge launches Studio+, a training program on affordable housing for architecture schools

Tuesday January 17th 2012 04:17:24 AM

Studio + is an academic programme developed by Lafarge in partnership with architecture schools.  The programme is an opportunity for architectural students to study in-depth the topic of affordable housing, alongside experienced professionals in this field, with a view to completing their final year-long project on the subject.  

More than 4 billion of people around the world do not have access to decent housing.  Aware of this growing need for affordable housing, Lafarge developed an expertise in this area.  Studio+ is an opportunity for Lafarge to share its scientific and technical knowledge with future architects to enable them to tackle the challenges of providing increasing numbers of affordable homes.

This programme commenced in December 2011 with the first conference focusing on affordable housing at the National Superior School of Architecture of Paris-Belleville (ENSAPB).  By the end of this year, more than 100 students will have participated in this programme from universities based around the world, including the ENSAPB, the Bombay JJ College of Architecture in India and the “Ion Mincu" University of Architecture and Urbanism in Bucharest in Romania.


ADDITIONAL INFORMATION – AS AT 31 DECEMBER 2010

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With more than 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked in sixth place by the "Carbon Disclosure Project" and joined the global "Dow Jones Sustainability Index" in 2010 for its sustainable development work. With the world’s leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge announces its new organization project

Monday November 21st 2011 09:09:13 AM

Lafarge announces its new organization project:
more agile and responsive, focused on its markets and its clients,
designed to accelerate the Group's development and profitability

The product line-based organization will be replaced with a country-based organization. This will include the removal of a layer of management and the resulting reorganization of the Executive Committee.

The project involves three main measures:

• implementing a country-based organization, with country CEOs' responsibilities extended to cover all cement, aggregates and concrete activities, using common support functions;
• the removal of one hierarchical layer, with the aim of cutting out the regional level;
• the resulting transformation of the structure and responsibilities of the Executive Committee, including the creation of a Performance function and an Innovation function.

The Executive Committee will be comprised of an Executive Vice President (EVP) Innovation, an EVP Performance, three EVPs Operations responsible for supervising countries, an EVP Strategy, Development and Public Affairs, an EVP Finance, an EVP Organisation & Human Resources, and one Senior Vice President Group Communications. (See appendix for the new composition of the Executive Committee)

This project is the natural next step following Lafarge's geographical expansion and its recent refocusing on cement, aggregates and concrete, particularly after the disposal of most of its gypsum activities. Its aim is to increase Lafarge's differentiation through the development of higher value-added products and solutions for construction.

Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said:

"This new organization project will reinforce our efficiency. It will drive us to greater focus on our markets and customers' needs, and to accelerate the Group's development through organic growth and innovation. This transformation is a milestone for the Group. It should strengthen Lafarge's position as a key player in sustainable construction."

The Group's organization project will be implemented from January 2012, once the necessary information and consultation procedures have taken place.

Biographies

Bruno Lafont, Chairman and Chief Executive Officer
Bruno Lafont began his career in the group Lafarge in 1983, holding numerous positions, including finance, international development and varying roles on the Group's Executive Committee. He has been a Director since May 2005 and Chief Executive Officer since January 1, 2006. In May 2007 he was appointed Chairman and Chief Executive Officer of the Group. Bruno Lafont is a graduate from the business school Hautes Etudes Commerciales (HEC) and studied at the Ecole Nationale d'Administration (ENA).

Jean-Carlos Angulo, Executive Vice-President Operations
Jean-Carlos Angulo joined the Group in 1975. He held various positions both in France and internationally and notably in Latin America. In 2007, he was appointed Executive Vice-President (in charge of North America, Latin America, Western Europe and the technical Organization of the Cement Division). He is a graduate of the Ecole des Mines of Nancy (France) and the European Institute for Business Administration.

Jean Desazars de Montgailhard, Executive Vice-President Strategy, Development and Public Affairs
Jean Desazars de Montgailhard began his career at the French Ministry of Foreign Affairs. He joined Lafarge in 1989 and held various positions in France, Spain and Singapore. He was Regional President for Asia and Africa from 1996 to 2006. In 2008, he became Executive Vice-President, Strategy, Sustainable Development and Public Affairs and a member of the Executive Committee. He studied at ENA and is a graduate from the Institut de Sciences Politiques in Paris and holds a Masters in Economics.

Thomas Farrell, Executive Vice-President Operations
Thomas Farrell began his career as an attorney both in New York and in Paris. He joined Lafarge in 1990 and held various positions in France, India and North America. Since September 1, 2007, he has been Co-President of the Aggregates & Concrete Business and a member of the Executive Committee. He is an American citizen, graduate from Brown University and a doctor in law from Georgetown University.

Jean-Jacques Gauthier, Executive Vice-President Finance
Jean-Jacques Gauthier began his career at Arthur Young in 1983. Between 1986 and 2000, he held several positions within the Matra / EADS Group, both in France and the United States until 1996, then in its space division as Chief Financial Officer of Matra Marconi Space, then Astrium. In 2001, he joined Lafarge as Chief Financial Officer and a member of the Executive Committee. He graduated in law and economics.

Christian Herrault, Executive Vice-President Operations
Christian Herrault joined Lafarge in 1985 after starting his career in the French administration. He held various positions in the United States and in France. In 1998, he was appointed to the Executive Committee as Executive Vice-President, Human Resources and Organization. In 2007, he was appointed President of the Gypsum Business. He is a graduate of Ecole Polytechnique and the Ecole Normale Supérieure des Mines engineering school of Paris.

Gérard Kuperfarb, Executive Vice-President Innovation
Gérard Kuperfarb began his career in 1983 as a research engineer at the Ecole des Mines de Paris before holding various functions in sales and marketing of composite materials. He then worked at a consulting firm in strategy. He joined Lafarge in 1992, held various functions in France then in North-America. He was appointed President of the Aggregates & Concrete business for Eastern Canada in 2005. Since 2007, he has been a member of the Executive Committee. He is a civil engineering graduate from the Ecole des Mines de Nancy. He also has a Masters in engineering from the Ecole des Mines de Paris, and an MBA from the HEC international business school.

Eric Olsen, Executive Vice-President Organization and Human Resources
Eric Olsen started his career at Deloitte & Touche. He then joined Paribas investment bank, then the consulting firm Trinity Associates. He joined Lafarge North America in 1999 and held various functions before being appointed Chief Financial Officer of Lafarge North America in 2004. Since 2007, he has been Executive Vice-President in charge of Organization and Human Resources and a member of the Group Executive Committee. Eric Olsen is an American citizen, holds a Bachelor of Science degree in finance and accounting from the University of Colorado, and an MBA from the HEC international business school in Paris.

Alexandra Rocca, Senior Vice-President Group Communications
Alexandra Rocca joined Lafarge in 2010. After she started her career at Printemps in 1986, then at Air Liquide from 1990 until 2001, she then took the Communications Director's post for Galeries Lafayette. She joined in 2005 the Crédit Agricole S.A. group, first as Communications Director at LCL, before becoming the Communications Director of this Group. Alexandra Rocca is a graduate from the HEC international business school in Paris, the Institut d'Etudes Politiques in Paris and holds a degree in French literature.

Guillaume Roux, Executive Vice-President Performance
Guillaume Roux joined Lafarge in 1980. He held various management positions in France and internationally, in particular in the United States, in Turkey, and in Malaysia. He joined the Executive Committee when he was appointed Executive Vice-President, co-President of the Cement Business in 2006. He is a graduate from the Institut d'Etudes Politiques in Paris (France).

Notes to editors - Lafarge as at December 31, 2010
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge closes sale of Gypsum assets to Etex Group

Friday November 4th 2011 06:24:43 AM

Lafarge announced that the Group received €850 million with the closing of the sale of its European and South American Gypsum assets to Etex Group. Lafarge will retain a 20% interest in the new partnership, allowing it to participate in the future upside of the business with Etex Group, a strong industrial company with expertise in building materials and systems.

Notes to editors
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010. Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.    

Cooptation of Mr. Ian Gallienne as a Director of Lafarge to replace Mr. Gérald Frère

Friday November 4th 2011 06:18:13 AM

On November 3, 2011, the Board of Directors of Lafarge decided to coopt Mr. Ian Gallienne as a Director of Lafarge to replace Mr. Gérald Frère who has resigned, for the remaining term of his position, i.e. until the end of the Shareholders' Meeting that will be called to approve the financial statements for financial year 2011.

Ian Gallienne has a degree in Management and Administration, with a specialisation in Finance, from the E.S.D.E. in Paris and an MBA from INSEAD in Fontainebleau. He began his career in Spain, in 1992, as co-founder of a commercial company. From 1995 to 1997, he was a member of management of a consulting firm specialised in the reorganisation of ailing companies in France. From 1998 to 2005, he was Manager of the private equity funds Rhône Capital LLC in New York and London. Since 2005, he serves as co-founder and Managing Director of the private equity funds Ergon Capital Partners, Ergon Capital Partners II and Ergon Capital Partners III in Brussels. He has been a Director of Groupe Bruxelles Lambert (Belgium) since 2009 and of Imerys (France) since 2010.
 
Notes to editors
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Results as of September 30, 2011

Friday November 4th 2011 04:15:18 AM

Solid sales growth in a continuing high cost inflation environment
Over €2 Billion of divestments secured for debt reduction
Launching a new cost savings program of €500 million for 2012

Third quarter key figures

• Sales up 1% to €4,211m (+6% like for like)
• Current operating income down 9% to €750m (-7% like for like)
• Net income Group share down 10% to €336m
• Net earnings per share down 10% to €1.17

Year-to-date key figures

• Sales up 2% to €11,471m (+4% like for like)
• Current operating income down 12% to €1,641m (-12% like for like)
• Net income Group share down 22% to €596m
• Net earnings per share down 22% to €2.08

Note: Sales and Current operating income are restated for 2011 and 2010 to reflect the reclassification of the Gypsum activities to discontinued operations.

Group Highlights

• Sales increased for both the quarter and year-to-date thanks to the strength of volume growth in emerging markets.
  
• Cement prices have moved up from year-end, although average year-to-date pricing was slightly lower than last year.
• Cost inflation and foreign exchange lowered overall results. The Group achieved €50 million of structural cost savings in the quarter and €150 million year-to-date, on pace with the €200 million full-year target.
  
• The Group made the strategic decision to divest its Gypsum activities. In total, the Group has secured over €2 billion of divestment proceeds for 2011 for debt reduction.
• The Group is launching a new cost savings program of €500 million for 2012 and plans to realize most of these savings next year.

Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said:

"In the current economic environment, the Group continues to be proactive and already secured over two billion euros of divestments as part of its actions to reduce debt. These efforts will continue and today the Group is announcing a new 500 million euros cost reduction program. These measures, including price actions in response to a high cost environment, are part of ongoing steps to strengthen profitability, reduce debt and maintain strong liquidity.

Looking ahead, the fundamentals of our business are strong. The Group, fully focused on its core businesses, foresees sustainable cash generating growth led by high quality positions, a unique exposure to emerging markets, and the advantages created by innovative products and solutions."

Outlook

Overall the Group continues to see cement demand moving higher and maintains its estimate of market growth of between 2 to 5 percent in 2011 versus 2010. Emerging markets continue to be the main driver of demand and growth and Lafarge benefits from its well balanced geographic spread of high quality assets.

Overall pricing is expected to be stable to slightly higher for the year in the context of a higher cost inflation environment.

Lafarge inaugurates its first sustainable construction development lab in Chongqing and signs alliance agreement with Chongqing University

Wednesday September 28th 2011 06:02:33 AM

Lafarge has just opened its first Sustainable Construction Development Lab in Chongqing and signed the Alliance Agreement with Chongqing University on the occasion of Chongqing Mayor's International Economic Advisory Council ("CMIA").

Located at Lafarge Shui On's Nanshan plant in Chongqing, the Sustainable Construction Development Lab is the first of such facilities opened worldwide in Lafarge Group. As an extension of its R&D Centre in Lyon, France, the Lab is fully equipped with Lafarge's cutting-edge technologies. The mission of the Lab is to develop new and advanced construction materials products and solutions for its customers in China based on local materials and conditions. This 1,000 square meter building will house 30 technicians and will be the base for experts of Lafarge R&D centre in Lyon and those outside Lafarge to work together.

In addition to this, and within its strategy to enhance innovation, Lafarge partnered today with Chongqing University through an Alliance Agreement. It aims to join the resources of both parties in research of mutual interests to develop innovative construction materials and final products by adapting to the China market and using raw materials in China.  This includes training and research programmes with PhD students, focusing on the advancement of construction materials.

Innovation is a strategic priority for Lafarge. The group focuses on the development of innovative solutions reducing the environmental footprint and energy consumption of its operations and that of buildings using its products. Using its knowledge in this field - in conjunction with a leading Chinese university like Chongqing University - Lafarge will develop more sustainable innovations faster to benefit customers, the wider economy and the country as a whole.

Research shows that buildings are responsible for about 40% of global energy consumption and 30% of global greenhouse gas emissions. Meeting this challenge means taking into account the whole lifespan of the building, from the mining of materials to the recycling of a building, via its construction, use and demolition. Lafarge dedicates more than €150 million each year to research and development of technology and innovation in products, systems and industrial processes. More than 60% of this budget is dedicated to sustainable construction. As a market where the company has built a strong presence, Lafarge in Chongqing has not only grown to be a leading company in the building materials sector, but also a model in dedicating itself in sustainable development. Its initiatives on sustainable construction will further enable the company to contribute more to the economic and social development of local community.

Notes to editors
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

About Lafarge Shui On
Established in November of 2005, Lafarge Shui On Cement Ltd., is a joint venture between Lafarge Group and Shui On Construction and Materials Ltd. Today, Lafarge Shui On has grown into a leading company in the cement industry in China, particularly in Southwest China.
Headquartered in Beijing, Lafarge Shui On presents its business in Chongqing, Sichuan, Guizhou and Yunnan, with the annual capacity of 30 million tons.

Lafarge - partnering architecture and UIA2011 TOKYO

Wednesday September 28th 2011 04:30:22 AM

Lafarge is partnering the 24th World Congress of Architecture (UIA2011 TOKYO) from September 25th to October 1st 2011, with construction of the French booth using Ductal®. The performance of Ductal, a fiber-reinforced concrete, allows architects to give free vent to their creativity. The two students from Nantes school of architecture who won the competition to design the stand came up with a very innovative concept for which Ductal® was particularly well suited, allowing the construction of a thin shell just 20mm thick which emphasizes the fluidity of the overall structure.

Ductal® is used all around the world for all sorts of innovative applications, from complex architectural façades to ambitious civil engineering structures. There is a keen interest in this material in Japan. At least 10 bridges and footbridges have been constructed using Ductal® over the past decade, in particular the Sakata-Mirai footbridge (2002) and the Mikaneike footbridge (2007) in Japan. Ductal® is particularly effective for this type of project due to its very high mechanical performances, strong durability and the lightness of the final structures. In 2010, it also contributed to one of the most impressive projects in the world in the bay of Tokyo - the extension of Haneda airport over the sea.

By supporting the Conseil International des Architectes Français (CIAF) and collaborating on the creation of the French stand at the Tokyo congress, Lafarge reaffirms its links to the world of architecture. Lafarge, the world leader in building materials, has been committed to promoting architectural innovation for many years and therefore maintains relations with designers, project owners and the users of its materials. It works with them on the development of its formulations, its products and its solutions, as well as their practical applications, through joint experiments and innovative projects.

Notes to editors
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge agreed with Boral to sell them its stake in their common Asian Gypsum Joint-Venture for 429 M€

Tuesday August 16th 2011 06:01:47 PM

Lafarge agreed with Boral to sell them its stake in their common Asian Gypsum joint-venture LBGA (Lafarge Boral Gypsum Asia) for 429 M€ (representing the enterprise value of Lafarge's 50%-stake in the joint-venture).

LBGA is a 50/50 joint-venture formed in 2000 between Lafarge and Boral. The company is a leading supplier of plasterboard and other gypsum-related products across Asia, operating throughout 10 countries with 20 production facilities and employing around 2,100 people. In 2010, LBGA's sales Group share accounted for 181 M€, with an EBITDA Group share of 31 M€.

This deal is expected to be completed before year-end.

Notes to editors

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.

Lafarge was ranked 6^th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Boral Limited is an international building and construction materials group, headquartered in Sydney, Australia. With leading market positions, Boral's core businesses are Cement and construction materials in Australia; Plasterboard in Australia and Asia; and Brick, roof tiles and Masonry in Australia and the USA.

This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report. These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.

More comprehensive information about Lafarge may be obtained under Regulated Information.

This document does not constitute an offer to sell, or a solicitation of an offer to buy Lafarge shares.

Results as of June 30, 2011

Thursday July 28th 2011 04:18:39 AM

Strong cement volume growth in the second quarter and first-half
High cost inflation environment
Group positioned for substantial deleveraging in 2011

Second-quarter key figures

• Sales stable at € 4,416m
• Current operating income down 16% to € 702m
• Net income group share down 12% to € 289m
• Net earnings per share down 12% to € 1.01 per share

Year-to-date key figures

• Sales up 3% to € 7,973m
• Current operating income down 14% to € 926m
• Net income group share down 34% to € 260m (1)
• Net earnings per share down 34% to € 0.91 (1)

(1) Comparison is impacted by Cimpor gain of € 160m in 2010, representing € 0.56 per share.

Group Highlights

• Sales increased on a like for like basis in all product lines for both the quarter and first-half, thanks to strong volume growth driven by continued strength in emerging markets.
• Cement prices moved progressively higher from the fourth quarter 2010 to second quarter 2011, but were slightly down compared to the first-half last year.
• Cost inflation and foreign exchange lowered overall results and is expected to impact earnings growth for the full year. The Group achieved €50 million of structural cost savings in the quarter and €100 million year-to-date, on pace with the €200 million full-year target.
• The Group announced a project to sell its European and South American Gypsum operations to Etex Group for an enterprise value of one billion euros while also maintaining a stake of 20% in the new entity.
• In addition to the significant divestment to Etex, the Group has secured €700 million out of the €750 million divestments targeted for 2011 and is on track to achieve at least €2 billion of debt reduction in 2011.

Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said:

"While I am encouraged by the return to cement volume growth for the last several quarters, the impact of high inflation and a slow recovery of mature markets weighed on the cement sector. The Group is focused on its priorities, including price actions in response to a high cost environment and strategic moves with its asset portfolio, to support profitability and reduce debt by at least two billion euros this year. The business will continue to benefit from volume growth thanks to our continued development in emerging markets."

Outlook

Overall the Group continues to see cement demand moving higher and estimates market growth of between 2 to 5 percent in 2011 versus 2010. Emerging markets continue to be the main driver of demand and Lafarge benefits from its well balanced geographic spread of high quality assets.

Overall pricing is expected to be stable to slightly higher for the year in the context of a high cost inflation environment.

Consolidated financial statements

The Board of Directors of Lafarge, chaired by Bruno Lafont, met on July 27, 2011 and approved the accounts for the period ended June 30, 2011. Further to their limited review of the interim condensed consolidated financial statements of Lafarge, the auditors have established a report which is included in the half-year financial report.

Lafarge sells its Australian Gypsum operations for 120 million euros

Friday July 22nd 2011 11:19:30 AM

Lafarge announces the sale of its Australian Gypsum operations to Knauf for net proceeds of 120 million euros.

Lafarge's Australian Gypsum business represents two manufacturing facilities for gypsum wallboard and other compounds along with a national network of distribution and retail centers. In 2010, Lafarge's Australian operations generated EBITDA of 13 million euros.

The completion of this deal is expected to be in the third quarter of 2011.

Notes to editors

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.

Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.  

Knauf is a leading manufacturer of building materials with more than 150 production sites worldwide. In 2010 the Knauf group had about 23,000 employees and achieved a turnover of more than 5 billion euros.

This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its Internet website. These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.

This document does not constitute an offer to sell, or a solicitation of an offer to buy Lafarge shares.

Lafarge announces a project to sell its European and South American gypsum operations for an enterprise value of 1 billion euros

Thursday July 14th 2011 01:00:14 AM

Lafarge announced that the Group has entered into exclusive negotiations with Etex Group for the sale of its European and South American Gypsum assets at an enterprise value of 1 billion euros. Under this proposed agreement, Lafarge would receive net cash proceeds of approximately 850 million euros and in addition would receive a 20% interest in the new partnership*, which would combine the European and South American Gypsum activities of both Groups.

Lafarge's European and South American Gypsum division manufactures gypsum wallboard and other gypsum-based products such as plaster, joint compounds, and plaster blocks. In 2010, Lafarge's European and South American Gypsum operations generated consolidated sales of 895 million euros and EBITDA of 115 million euros.

This project will be submitted to the relevant authorities, notably anti-trust authorities. Moreover, there will be an information and consultation process with the relevant employee representative bodies.

Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said:

" This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity's future success. We are very pleased of the future prospects of this reinforced partnership with Etex Group, a strong industrial company with expertise in building materials and systems. This operation is positive for Lafarge and its shareholders and will contribute to the strengthening of the Group's balance sheet and to the optimization of its portfolio."

*Contractual rights specify that Lafarge would be able to sell its 20% interest to Etex Group after 5 years

NOTES TO EDITORS

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Etex Group is an industrial group that produces and markets high-quality building materials and systems. With headquarters in Belgium, the Group holds more than 90 subsidiaries across 40 countries and employs more than 13,500 people.
More information on Etex Group is available on the company's website www.etexgroup.com

This release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its Internet website (www.lafarge.com). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.
More comprehensive information about Lafarge may be obtained on this Internet website, under Regulated Information.
This document does not constitute an offer to sell, or a solicitation of an offer to buy Lafarge shares.

New CO2 targets: "From materials to buildings"

Thursday June 23rd 2011 03:19:42 AM

Today Lafarge announced new CO2 targets. These are divided into two key areas:

• a 33% reduction of CO2 emissions per ton of cement produced by the end of 2020, compared with 1990 levels;
• an innovative sustainable construction commitment based on solutions that enable the design of "low-energy" buildings that will be used tomorrow.

These objectives have been developed by Lafarge within the framework of its partnership with the World Wildlife Fund (WWF).

> Cut CO2 emissions by 33% per ton of cement by end-2020 (base 1990)

As a first step, in the context of its partnership with WWF International, Lafarge had committed to reducing its CO2 emissions per ton of cement by 20% between 1990 and 2010. Not only was this target met one year ahead of schedule in 2009, but it was also exceeded, as the Group achieved a 21.7% reduction in its CO2 emissions per ton of cement at the end of 2010. Today, every ton of cement produced by Lafarge emits an average of 606kg of CO2, 168kg less than in 1990.

Thanks to its new target of cutting CO2 emissions by 33% per ton of cement produced, the Group will emit an average of 518kg of CO2 per ton of cement produced in 2020, around 250kg less than in 1990.

> Develop innovative solutions for sustainable construction by 2015

Buildings currently account for 40% of global primary energy consumption; reducing this is one of the key challenges of efforts to combat climate change. This energy is mainly consumed through its daily use during the lifetime of the building. Lafarge is therefore undertaking to help improve the energy efficiency of buildings and reduce their carbon footprint, by setting clear objectives for 2015:

• develop 10 new ranges of innovative construction products or solutions, from its research projects;
• contribute to the design of 500 construction projects that are more energy-efficient.

Following the announcement of these new objectives, Bruno Lafont, Chairman and CEO of Lafarge, commented: "Lafarge has made the reduction of its CO2 emissions a major objective, and has met its commitments. I am pleased with our partnership with WWF, which helps us to progress even faster. It is no longer a matter of just reducing the CO2 emitted in the production of our materials, but also of developing construction solutions for buildings that consume less energy."

Additional Information

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.

Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

Lafarge and the Ecole des Ponts ParisTech strengthen their partnership

Thursday June 9th 2011 02:05:33 AM

Lafarge and the Ecole des Ponts ParisTech are renewing the Materials Science for Sustainable Construction (SMCD) teaching and research chair for five years. The aim of the chair is to promote research and innovation in the field of building materials in order to improve the environmental footprint of constructions. This is also a strategic challenge shared by the Lafarge Research Center and the Laboratoire Navier (a combined research unit of Ecole des Ponts ParisTech, IFSTTAR and CNRS) which have decided to work together by signing a new framework research contract.

Supporting the training of future engineers and researchers

Lafarge supports the training of young engineers to provide them with quality teaching in the performance of materials and sustainable construction. For the past five years, the SMCD Chair has supported a Master's course focusing on the environmental footprint of materials. Students benefit from an interdisciplinary program unique in the world, drawing on the expertise of professors from the Ecole des Ponts ParisTech and Lafarge engineers and researchers. The course prepares students to contribute to future scientific advances within cutting-edge companies and large research organizations.
 
Most of the students trained so far have continued their studies, going on to research a doctoral thesis. Thanks to the Chair, several foreign students have been awarded grants enabling them to take part in the program. International seminars as well as visits to prestigious international universities are organized each year to foster high-level exchanges on the latest progress in materials science.
 

The Laboratoire Navier: cutting-edge research to develop the materials of the future

As part of its R&D program, Lafarge works with leading research centers, universities and schools around the world to develop innovative new construction solutions. As part of this approach, the Lafarge Research Center has signed a framework contract with the Laboratoire Navier, a research unit working in the field of mechanics and physics of materials, structures and geomaterials, bringing together high-level researchers from the Ecole des Ponts ParisTech, CNRS and IFSTTAR. As part of this collaboration, the Laboratoire Navier will contribute to research into the implementation properties, mechanical performance and durability of new concretes developed by Lafarge for low carbon construction. This type of partnership brings additional scientific expertise to enhance Lafarge's research program and accelerate innovation in construction.

Significant synergies exist between this research contract and the SMCD Chair. As part of their Master's and PhD training, students benefit from high-level teaching and supervision from the Laboratoire Navier's researchers. As a result of the framework contract, students are able to train in cutting-edge materials science aimed at reducing environmental impact, through internships or doctoral theses carried out at the Laboratoire Navier, the Lafarge Research Center or in an associated laboratory.
 

ADDITIONAL INFORMATION

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 76,000 employees in 78 countries, Lafarge posted sales of Euros 16.2 billion in 2010.
Lafarge was ranked 6th in the "Carbon Disclosure Project" and entered the global "Dow Jones Sustainability Index" in 2010 in recognition of its sustainable development actions. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

The Ecole des Ponts ParisTech provides master's and doctorate degrees and continuing education for engineers with high-level scientific, technical and general skills, enabling them to hold positions of responsibility in national planning and development, construction, transport, industry and the environment. Its research allows the teaching provided by the school to draw on a strong scientific corpus. This high-level research, at the intersection of the fundamental and the applied, is carried out in close contact with companies and public authorities. A founder member of the Université Paris-Est and ParisTech higher education and research clusters, the school works with numerous international partners. It offers the full range of courses in the LMD framework, the international reference for higher education qualifications. It has 2,000 students and 360 researchers working in its 11 laboratories. Developing innovative materials and structures which respond to environmental issues raises numerous challenges. The Ecole des Ponts ParisTech is equipped to meet these challenges as a result of the courses offered by the Civil Engineering and Construction department and the Mechanical Engineering and Materials department and the research carried out by the Laboratoire Navier (CNRS combined research unit and joint laboratory with IFSTTAR).