Similarly up 2% like-for-like were EBITDA (down 4% to €887 million compared to Q3, 2013); current operating income (down 5% to €676 million) and net result group share at €218 million (€0.76 per share).
Over the first nine months of 2014 sales were down 3% to €9,636 million; EBITDA was down 2% to €2,042 million (up 4% like for like) and Current operating income was down 1% to €1,431 million (up 8% like for like)
The group’s highlights show that after a solid growth in the first half, volume trends eased in Q3 with a more challenging comparable in Europe, mostly in France, and lower volumes in Iraq. Growth in most emerging markets and in the United States continued and it benefited from the start-up of our new plants in India and in Russia. At constant scope and excluding the loss of volumes in Q3 in Iraq, cement volumes are up 6% year-to-date and up 3% in the third-quarter.
Lafarge says that the adverse impact of exchange rates reduced during the quarter, with a negative 2% and 3% impact respectively on sales and EBITDA (€-69 million on sales and €-26 million on EBITDA).
Cost cutting and innovation measures generated respectively €751 million and €601 million during the quarter.
In the first nine months, these measures contributed €425 million, putting Lafarge on track to deliver €600 million in 2014. Cement prices were stable quarter on quarter and up 2.2% year-on-year, underpinned by price increases in a context of cost inflation.
Net income Group share is down 28% but adjusted for one-time gains on divestments and merger-related costs, net income is stable. The improving contributions of joint ventures, notably in the United Kingdom, and the reduction of financial interests offset the impact of scope and adverse exchange rates.
Some €1.4 billion of divestment proceeds have been secured since the beginning of the year and €0.9 billion are to be received, mostly in Q4, and will contribute entirely to net debt reduction.
With the recent formal filing in the
Bruno Lafont, chairman and chief executive officer of Lafarge, said: “In a quarter marked by more moderate growth, we continued to progress on implementing our actions to reduce debt, cut costs and promote innovation.
“Our management is fully focused on our day to day business and on achieving our objectives. We shall meet our 2014, €600 million cost cutting and innovation target, and confirm our 2015, €550 million objective.
“We are making swift progress on our planned merger with Holcim with a dedicated project team. We have taken decisive steps towards the completion of this transformational move. Given the headway made on the divestment, regulatory and integration processes, we are confident, as announced, that we will complete the merger in the first half of 2015.”
Overall the group sees cement demand increasing for the full year and confirms its estimate of market growth of between 2-5% in 2014 versus 2013. Emerging markets continue to be the main driver of demand and Lafarge will benefit from its well-balanced geographic spread of high quality assets.
Cost inflation should continue at a similar pace as in 2013, which should result in higher prices overall.
The group has decided to pause its stand-alone divestments pending completion of the planned merger.
