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[March 2004]
Lafarge Full Year 2003 Results
For the year ended 31 December 2003, Lafarge Group sales increased by 4.6%. The operating income on ordinary activities was negatively affected by a strong currency impact in 2003 (-€185 million), by anticipated incremental pensions costs (-€99 million) and by a negative scope effect (-€46 million). Excluding these items, operating income on ordinary activities increased by 6.9%. The net income Group share was €728 million versus €456 million in 2002, a year affected by an exceptional provision of €300 million.
The Roofing Division, which includes major clay (as well as concrete) product facilities, delivered a strong operating income on ordinary activities growth, with a 14.4% increase on like-for-like basis driven by performance improvement. Operating income finished up at €142 million for 2003.
Margins in this sector were up a 0.8 percentage point to 9.4% in 2003 versus 8.6% in 2002. Lafarge said that extensive restructuring of its operations since 1999, particularly in Germany, delivered satisfactory results despite a still difficult German market in 2003.
Overall, the Group operating income was €1.934 billion. This was down 9.3% on 2002, but excluding foreign exchange and scope effects was up 1.7%. Group sales for 2003 were €13.658 billion, down 6.5% on the 2002 figure of €14.61 billion. The Lafarge Group now employs 75,000 people in 75 countries.
ENDS