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[May 2003]
Lafarge First Quarter Sales
Lafarge's headline sales in the first quarter of 2003 declined by 14.4% to 2.691 billion euro from 3.145 billion euro, with underlying sales slipping by 2.3% and a significant foreign currency fluctuation impacting sales by 10.1%. The net scope effect on sales amounted to minus 2%, largely as a consequence of the divestments realised in 2002.Commenting on these sales, Chairman and CEO Bertrand Collomb said: "The seasonal nature of our businesses often leads to variations in sales in the first quarter of the year, as market demand is reliant on clement weather conditions. In the first quarter of 2002, we reported strong sales due to record mild temperatures, while winter conditions in 2003 were extreme in many countries. We remain therefore cautious at the beginning of the year about establishing any trends for sales for the remainder of the year.
"In an economic environment which is still uncertain, our priority for 2003 remains to focus on our performance improvement programs, to return to a 2000-like financial structure, and to reduce our debt by 1 billion euro, excluding foreign exchange variations."
Clay roof tile is part of the Roofing business segment, which saw sales dip by 3.2% at constant scope and foreign exchange to stand at 279 million euro. Sales in Western Europe suffered from the harsh winter, but also from a weaker level of demand in France and in Germany for concrete tiles in particular.
Sales in the UK, Scandinavia and Italy recorded positive trends. In the USA sales continued to grow strongly with favourable conditions in many markets. Sales of roofing components continued to increase.
ENDS