Lafarge 2Q11 net profit falls 12%
Lafarge said second-quarter net profit fell 12 per cent as weak US demand and higher raw material costs impacted results.
The company, which said it expected to see market growth of 2 to 5 per cent for the year, said on Thursday that second-quarter sales were flat at EUR4.42bn.
Net income fell to EUR289m from EUR329m in the year-ago period as the company’s operating margin narrowed to 15.9 per cent from 18.8 per cent.
Emerging markets continue to be the main driver of demand. Overall pricing is expected to be stable to slightly higher for the year in the context of a high cost
inflation environment.
Lafarge, which recently entered into exclusive talks to sell its European and South American plaster assets as part of a wider debt reduction plan, has struggled to push through price hikes to compensate for higher raw materials prices. Published under Cement News
