"Lafarge" Q3 profit drops 38%

N.I.(Tradus de Cosmin Ghidoveanu)
Ziarul BURSA #English Section / 9 noiembrie 2009

"Lafarge" SA, the world"s largest cement maker, announced a 38% drop of its net profit YOY, due to the economic crisis which caused a slump in the construction sector. The earnings of the French company reached EUR 404 million (USD 601 million), beating analyst estimates of EUR 386 million.

Sales reached EUR 4.25 billion, down 20% over Q3 2008, below analyst estimates of 4.62 billion.

The group"s turnover at the end of Q3 2009 was EUR 12.24 billion, down 15% YOY. The company"s net profit dropped 49% at the end of Q3 2009, to EUR 731 million.

"Lafarge" estimates a 6-8% annual drop in turnover. The company had previously forecast a decline of 4% to 8% in July. However the company expects a turnaround next year, even though it remains "cautious". The company plans to trim its overhead expenses by EUR 400 million between 2009 and 2011.

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