PARIS, Feb 19 (AFP) : French cement giant Lafarge on Wednesday reported a recovery of net profit last year and said that demand for its products for the construction industry was picking up.
But the net figure was helped by asset sales, and underlying operating profit fell on unfavourable exchange rates.
Lafarge, as a world leader in construction materials is a barometer of the health of building and civil engineering activity.
Net profit amounted to 601 million euros ($827 million), boosted by asset sales. That was an increase of 65.0 per cent from 365 million euros in 2012 but short of analysts' expectations of 644 million euros.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 9.0 per cent to 3.1 billion euros, although excluding the effects of exchange rates it rose by 2.0 per cent.
Sales fell by 4.0 per cent to 15.2 billion euros. Lafarge said that this figure was particularly undermined by the strength of the euro against the dollar and by the fall of many emerging market currencies.
Currency factors reduced sales by 6.0 per cent, it said.
The group slightly overshot its target of reducing debt to less than 10.0 billion euros, reporting a figure of 10.3 billion euros.
But it intended to reduce this to 9.0 billion euros this year.
Lafarge posts profit recovery, sees cement demand rallying
FE Team | Published: February 20, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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