However, the group says it should be noted that first quarter results reflect seasonality, and are not indicative of full-year trends and traditionally lead to lower results relative to other quarters in the year.
The results also show that EBITDA was down 26% to €380 million (-19% like-for-like) and current operating income is down 53% to €124 million (-38% like-for-like)
Group highlights show that apart from the first quarter results being affected by lower volumes reflecting overall harsh weather conditions, temporary production limitations in Algeria and Egypt and two working days less in the quarter represented a third of the volume decline.
The group says it has continued to successfully implement price increases to address cost inflation, and these actions have gained pace during the quarter and will fully deliver in the coming months.
Performance and innovation measures continued to deliver results and generated respectively €60 million and €40 million EBITDA in the quarter, despite low volumes.
The group says it is on track to achieve its target to generate incremental EBITDA of €650 million from performance and innovation actions in 2013.
Net debt at the end of March decreased €0.6 billion compared to Q1 last year. It moved slightly higher compared to year-end 2012 due to normal seasonal working capital needs.
The group says it continues to progress towards its debt reduction target. With the most recent divestment of its plant in Ukraine, it has secured €1 billion of disposals since 1 January 2012.
Bruno Lafont, chairman and chief executive officer of Lafarge, said: “The first quarter traditionally represents a small proportion of our results and is not indicative of full year trends. Our outlook remains unchanged and we expect to see cement demand growth in our markets of between 1 to 4% in 2013.
“We continued to be fully focused on actions within our control. Price increases have been actively implemented in most markets and we will reap the full benefit as the year unfolds. Our performance and innovation actions delivered €100 million EBITDA in the quarter, on track with our 2013 target of €650 million.
“I am confident that by the end of 2014 we will have delivered most of our 2012-2015 plan to generate €1.75 billion additional EBITDA through performance and innovation measures, close to one year ahead of our initial objective.
“We will also reduce net debt to below €10 billion as soon as possible in 2013.”
For its outlook overall the group continues to see cement demand increasing for the full year and estimates market growth of between 1 to 4% in 2013 versus 2012.
The company says emerging markets continue to be the main driver of demand and Lafarge will benefit from its well-balanced geographic spread of high quality assets.
“We expect higher pricing for the year and that cost inflation will continue, although at a slightly lower rate than in 2012.
The group targets to reduce net debt to below €10 billion as soon as possible in 2013. Capital expenditures will be limited initially to €800 million in 2013.”
