May 6, 2014
The company also reports that its sales were down 2 percent to €2.633 million ($3.67 million) for the quarter. Sales were up 9 percent like for like in the same time period.
The company’s EBITDA remained at €343 million ($477.94 million) and was up 21 percent like for like for the first quarter of the year.
Current operating income rose 14 percent to €146 million ($203.44 million) and increased 69 percent like for like.
The net result group share was at €-135 million ($-188.11 million), or €-0.47 ($-0.65) per share, in the first quarter of 2014, compared to €-117m ($-163.03 million), or €-0.41 ($-0.57) per share in the first quarter of 2013.
Lafarge reports that cement volumes improved 11 percent in the first three months of 2014. However, cement sales and EBITDA were down 8 percent (€195 million, or $271.71 million) and 10 percent (€29 million, or $40.41 million), respectively. The company attributes these declines to adverse exchange rates.
Like for like, EBITDA was up 21 percent and EBITDA margin rose 130 basis points, a trend that the company says “reflects volume growth combined with the impact of our actions to reduce costs and promote innovation.”
Cost reduction and innovation measures generated €80 million ($111.47 million) and €45 million ($62.70), respectively, in the quarter. Lafarge notes that these measures are on track to deliver more than €600 million ($836.04 million) in 2014.
Excluding the impact of €45 million ($62.7 million) one-time gains on divestments on first quarter 2013 net income, Lafarge reports that first quarter 2014 net income is improving by c.€30 million ($41.8 million), underpinned by the improvement in current operating income.
Net debt fell €1.3 billion ($1.81 billion) compared to the first quarter of last year, which the company says reflects higher cash flows and deleveraging actions. Additionally, free cash flows were up by 54 percent.