Lafarge: margin fall
Lafarge, the group specializes in building materials, has announced a decrease of 3% of its turnover for the first half of 2010. At constant exchange rates and constant perimeter, the decrease amounted to 4%. The operating income showed a decline of 5% to 1.072 billion euros (-9% at constant scope and exchange rates).
Net income from Lafarge withdrew its side of 29% to 233 million euros. The current operating margin shows finally a decrease of 30 basis points to 13.9%.
In the second quarter alone, sales rose 2% to 4.436 billion euros but, at constant perimeter and constant exchange rates, sales rose 2%. The operating income increased 5% to 836 million euros.It is stable at constant exchange rates and constant perimeter.
New measures to reduce debt
Brunot Lafont, CEO of Lafarge, said in a statement that "the pace of economic recovery remains uncertain and highly variable from one country to another," led the group to adjust its market forecast for the year 2010. Lafarge table so now on a variation of the demand for cement between -1 and +3% on the year compared to 2009 (against 0% to 5% expected in late March).
The band announced further steps to reduce its debt amounting to 15.16 billion euros (down 1% in the first half). Thus, it will "limit its investments in 2011 to 1 billion euros" and sets "a new goal of structural cost reductions of more than 200 million euros."