The figures to 31 December, 2014, also show that current operating income is down 14% to €2,075 million but up 3% like-for-like
At the same time, the figures how that while the 2013 results were up like-for-like, they were impacted by adverse exchange rates.
Lafarge says its cost reduction and innovation objectives were achieved with €670 million generated in 2013 and net debt was reduced by €1 billion compared to 2012.
In the fourth quarter sales were down 2% to €3,714 million (up 5% like-for-like) and EBITDA was down 6% to €793 million (up 14% like-for-like).
Current operating income was down 10% to €529 million but up 20% like-for-like.
The group says that volumes continued to improve, supported by ongoing growth in most emerging markets; the recovery in the United States and stabilising Europe, confirming Q3 trends. Adverse exchange rates continued to weigh on sales and EBITDA (respectively -€259 million and -€63 million in the quarter).
Q4 EBITDA grew 14% on a like-for-like basis, increasing in all regions, driven by higher volumes, firm prices and the acceleration of cost reductions and innovation measures. The solid performance in North America, Middle East/Africa and Asia in particular supported this growth.
The group confirmed its objective to deliver its 2012-2015 plan by the end of 2014, with at least €600 million of EBITDA coming from cost reduction and innovation measures in 2014 and to reduce net debt below €9 billion.
“In the fourth quarter we saw much more positive operational trends, accelerating compared to the third quarter, while exchange rates continued to be adverse,” says Bruno Lafont, chairman and chief executive officer of Lafarge.
“The group implemented targeted actions to promote innovation and reduce costs and debt. These measures continue to gain momentum and I am confident that we are particularly well positioned to succeed and deliver on our objectives in 2014 and beyond.
“Looking at 2014, we are determined and confident, and we expect an overall growth in our markets of between 2-5%. In this improving environment, the group will take full advantage of its three organic growth drivers: emerging markets, where construction trends continue to be very favourable; accelerated growth through innovation,
and the progressive recovery of developed economies, starting with North America.
“We will continue to apply the utmost discipline in capital allocation and our aim is to return to an investment grade profile this year. In line with this objective and targeting a step-improvement in our return on capital employed, we will pursue the development of our most promising positions through selective organic investments. We notably plan to add more than ten million tonnes of cement capacity in existing locations in the coming four years in Sub-Saharan Africa, to further reinforce our leadership position in this region and benefit from accelerated growth.”
