Group positioned for 2011 earnings growth and substantial deleveraging.
First-quarter key figures
- Sales up 9% to € 3,557m
- EBITDA stable at € 514m
- Current operating income down 5% to € 224m
- Net income group share up €44m when excluding disposal gain on Cimpor in 2010
- Net earnings per share up €0.16 when excluding disposal gain on Cimpor in 2010
- Sales increased for the quarter, driven by higher volumes in all product lines across both emerging and developed markets.
- Overall results impacted by inflation and events in Egypt.
- Net income group share and earnings per share improved when excluding the first quarter 2010 one time gain of €137 million for the sale of the investment in Cimpor.
- The Group is positioned for 2011 earnings growth and is on track to achieve more than €2 billion of deleveraging and €200 million of structural cost savings in 2011.
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. For developed markets, the Group expects that demand will continue to recover.
Overall pricing is expected to move higher for the year in the context of a higher cost inflation environment, although levels of pricing movements will vary by market.