Lafarge EBITDA rises 21% in Q1 2014

May 6, 2014

Lafarge CanadaLafarge reports that its EBITDA was up 21 percent like for like in the first quarter of 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.

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