Reuters: Regulatory News: UPDATE 1-Lafarge sees higher pricing in 2012

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UPDATE 1-Lafarge sees higher pricing in 2012 May 4th 2012, 06:24 Fri May 4, 2012 2:24am EDT * Q1 EBITDA up 8 pct at 516 mln eur * Q1 sales up 5 pct to 3.35 bln eur * Q1 net loss widened to 44 mln eur, hit by restructuring * Sees cement market up 1-4 pct in 2012 * Sees higher pricing for 2012 PARIS, May 4 (Reuters) - Lafarge, the world's largest cement maker, said it expected higher pricing for 2012 after sales and operating profits rose in the first quarter, lifted by price increases for customers and stronger cement volumes in emerging markets. But net losses widened in the quarter due to restructuring charges as the company continued to slash costs as part of a 500 million euro ($657.63 million) savings plan. Earnings before interest, tax, depreciation and amortisation in the three months to March 31 rose 8 percent to 516 million euros ($678.67 million), while sales increased 5 percent to 3.35 billion euros, slightly beating an average of 3.34 billion from a Reuters poll of eight analysts. Net loss widened to 44 million euros from 29 million in the same quarter a year ago. "Overall the group continues to see cement demand moving higher and maintains its estimated market growth of between 1 to 4 percent in 2012 versus 2011," Lafarge said in a statement. "We expect higher pricing for the year and that cost inflation will increase at a lower rate than in 2011." Lafarge's German peer HeidelbergCement and Mexico's Cemex have also opted to charge customers higher prices to offset rising costs., The manufacture of cement, the most heavily consumed substance on earth, costs a lot of energy as its ingredients have to be crushed and burned. DEBT SHRINKS Net debt decreased by 13 percent to 12.36 billion at the end of the quarter, compared with the same period in 2011. Lafarge has been selling non-core assets - among them the European and South American gypsum assets - and refocusing on its core cement and concrete business after losing its investment grade last year. The French company became heavily indebted after paying 10.2 billion for Orascom Cement, the largest cement maker in the Middle East, in 2007. It pledged in February to cut its 12 billion euro debt pile further this year with asset disposals worth more than 1 billion euros, capital expenditure cuts and cost savings of at least 400 million in 2012. Lafarge will also have to sell a number of assets to win British clearance for a tie-up of its building materials business with miner Anglo American. Its shares, which have gained around 10 percent of their value since the start of 2012, closed at 29.98 billion on Thursday, giving the company a market capitalisation of 8.6 billion. Link this Share this Digg this Email Reprints

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