Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

For the month of: October, 2005

Commission File Number: 001-15218

 


 

LAFARGE

(Translation of registrant’s name into English)

 


 

61, rue des Belles Feuilles

75116 Paris

France

(Address of principal executive offices)

 


 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F....X.... Form 40-F........

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ..... No ..X..

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-             

 

Enclosures:

 

Press Release, dated October 20, 2005, relating to Lafarge 2005 nine months sales report

 


 

Page 1 of 13 Total Pages


LOGO

 

PRESS RELEASE

 

Euronext: LG, NYSE: LR

  Paris, October 20, 2005

 

2005 NINE MONTHS SALES REPORT

 

· Sales up 8.2% to  11,759 million

· Positive pricing trends in most markets

· Our few difficult markets evolving as expected, however with some weaker North American markets

 

Sales were up 8.2% to  11,759 million as at September 30, 2005 compared to  10,870 million for the first nine months of 2004. The net scope effect was at 0.6%. Foreign exchange variations impacted sales by 0.2%. Like for like sales rose by 7.4% for the first nine months of the year and by 9.5% in the third quarter.

 

“We are continuing to experience good overall pricing trends in most of our markets, in a context of higher energy and transportation costs. The situation in our few difficult markets is evolving as expected, with continued weakness in Germany and, in cement, ongoing severe price competition in Brazil, stabilization of prices in South Korea and prices back to their previous levels in Malaysia. However, some North American markets (North East and the Great Lakes) have recently appeared softer. In this context, our previously stated full year expectation of like for like current operating income growth now appears challenging” said Jean-Jacques Gauthier, Executive Vice President and Chief Financial Officer.

 

The sales report for each division, excluding foreign exchange, scope effects, and before inter divisional sales elimination is as follows:

 

CEMENT: +8.1% (+2.1% in Quarter 1, +9.9% in Quarter 2, + 10.8% in Quarter 3).

 

Cement sales grew 8.1% with a very good third quarter. Volumes, to date, are 1.2% ahead of the strong levels achieved in the same period of 2004. Year on year price growth was significant, in an environment of higher energy and transportation costs.

 

In Western Europe, sales are up overall with good growth in France and Spain. Solid price improvements were experienced in Germany and the UK. The favorable pricing trends across much of the region served to offset the lower volumes in Germany, Greece and the UK.

 

North America posted strong sales, with strong price increases throughout the first nine months. Volumes growth in our Western, River and Southeastern markets have more than compensated for weaker Northeastern and Lakes markets.

 

Sales in Eastern Europe are well ahead of last year’s with a very strong third quarter. Romania, Serbia and Russia continue to post robust sales, with strong pricing performance in Russia and Serbia. Poland had a strong third quarter, however its market remains uncertain and year-to-date volumes are still below 2004 levels.

 

Strong sales growth was recorded in the Mediterranean Basin particularly in Jordan, Turkey, Egypt and with an improving trend in Morocco.

 

In Africa, sales benefit from favourable volume trends, particularly in Kenya and South Africa. Prices were up in all markets along within the rise in input costs.

 

Page 2 of 13 Total Pages


LOGO

 

Sales evolution in Asia remain very contrasted. Volumes grew in India and Malaysia but stayed weak in South Korea and the Philippines. The overall decline in sales is attributable to the severe price conditions experienced in Malaysia and South Korea in the first half. During the third quarter, however, prices are back to their previous levels in Malaysia and have stabilized in South Korea.

 

In Latin America, sales are slightly down, essentially reflecting the ongoing severe price competition in Brazil. On the other hand, Venezuela and Chile continued to show good improvement.

 

AGGREGATES & CONCRETE: +10.0% (+4.5% in Quarter 1, +13.6% in Quarter 2, +10.2% in Quarter 3 )

 

The strong growth in Aggregates and Concrete has been driven by continued solid pricing gains in a context of rising costs throughout most markets and good volumes, in the second and third quarters.

 

Aggregates sales growth were particularly robust in North America, driven by favorable prices and volumes. In Western Europe, sales are up as a result of good pricing trends, although volumes remain down after the weak, weather impacted, first quarter and a decline of the UK market. Good market conditions were seen in the majority of our emerging markets. The Asphalt and Paving activity, driven in North America and the UK by volumes and prices, improved from 2004 levels.

 

In Concrete, sales increased strongly in Western Europe, driven by favorable pricing actions, product and customer mix and strong volumes in all markets but Greece. In North America good price and product mix improvements more than offset the decline in volumes. We also saw strong increase in most emerging countries, particularly in Latin America, Africa and Asia.

 

ROOFING: -3.4% (-9.1% in Quarter 1, -3.8% in Quarter 2, +0.8% in Quarter 3)

 

In Western Europe, over the nine months, sales are down in most countries, with the exception of Italy and Scandinavia. The severe drop in volumes and prices in Germany continued through the third quarter although the gap from last year is reducing. Good housing market conditions continued to drive sales growth in the United States, both in volumes and prices.

 

GYPSUM: +7.4% (+4.5% in Quarter 1, +9.7% in Quarter 2, +7.6% in Quarter 3)

 

The increase in sales was largely driven by favorable market conditions in North America, resulting in successful price increases and volume growth. Sales volumes in Western Europe were relatively flat, pulled down by Germany, but positive pricing contributed to increase sales. In Asia sales declined, mainly as a result of a weaker market in South Korea.

 

POSITIVE FOREIGN EXCHANGE IMPACT OF +0.2% AMOUNTING TO  23 MILLION

 

The positive foreign currency translation impact on sales was limited, with the decline in the US Dollar versus the euro being more than offset by the appreciation of several other currencies (in particular, the Canadian dollar, the South Korean won and the Polish zloty).

 

SCOPE CHANGES OF +0.6% AMOUNTING TO  70 MILLION

 

Sales from acquisitions amounted to a positive scope effect of  154 million largely due to the acquisition of Cementos Selva Alegre in Ecuador in December 2004, of Hupfer Holdings in France (May 2004) and of the assets of The Concrete Company in the United States (April 2004). The negative scope effect, stemming mostly from disposals in the UK and North America, totaled  84 million.

 

Page 3 of 13 Total Pages


LOGO

 

CONSOLIDATED SALES AS AT September 30, 2005

 

    

September 30,

2005

Million


  

September 30,

2004

Million


   Variation

   

At constant scope

and foreign exchange


   

At constant scope

and foreign

exchange, before

inter divisional

sales elimination


 

Cement

   5,634    5,174    +8.9 %   +7.9 %   +8.1 %

Aggregates & Concrete

   3,920    3,515    +11.5 %   +10.1 %   +10.0 %

Roofing

   1,108    1,123    -1.3 %   -3.4 %   -3.4 %

Gypsum

   1,081    1,009    +7.1 %   +7.3 %   +7.4 %

Others

   16    49    -67.3 %   +16.2 %   NA  

TOTAL

   11,759    10,870    +8.2 %   +7.4 %   NA  

 

Lafarge’s next financial publication - 2005 full year sales- will be on January 26, 2006 (before the Euronext stock market opens).

 

Lafarge, the world leader in building materials, holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge employs 77,000 people in 75 countries and posted sales of 14.4 billion in 2004. Additional information is available on the web site at www.lafarge.com.

 

For release worldwide with simultaneous release in the United States.

 

COMMUNICATIONS:

  INVESTOR RELATIONS:

Stéphanie Tessier: 33-1 44-34-92-32

stephanie.tessier@lafarge.com

 

Yvon Brind’Amour: 33-1 44-34-92-93

yvon.brindamour@lafarge.com

Amanda Jones: 33-1 44-34-19-47

amanda.jones@lafarge.com

 

Danièle Daouphars: 33-1 44-34-92-93

daniele.daouphars@lafarge.com

 

Statements made in this press release that are not historical facts, including statements regarding our expected operating income, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions (“Factors”), which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company’s business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonal nature of the Company’s operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company’s public filings with the French Autorité des Marchés Financiers and the US Securities and Exchange Commission including its Reference Document and annual report on Form 20-F. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.

 

Page 4 of 13 Total Pages


LOGO

 

Conference Call on Half Year Sales to September 30th, 2005

Following the release of Lafarge’s sales to September 30th, 2005, a conference call will be held on:

 

October 20th, 2005 at 15:30 French time, in English

(14:30 UK time; 09:30AM EDT in North America)

 

The speakers will be:

 

Jean-Jacques Gauthier – Chief Financial Officer and Executive Vice President

Yvon Brind’Amour - Vice-President Investor Relations and Equity Financing

Danièle Daouphars – Manager Investor Relations

 

If you wish to participate in the conference call, please dial:

 

From France: +33 (0)1 70 99 35 06

From UK toll free (UK only): 0800 358 3798

From UK dial in local number: + 44 (0) 20 7947 5018

From USA toll free (US only): +186 6432 7186

Conference call name: “Lafarge

 

A replay of the conference call will be available from October 20th, 2005 at 7.30 pm French time to October 27th, 2005 at 7.30 pm at the following numbers:

 

From France +33(0) 4 88 91 53 52

From UK toll free (UK only): 0800 358 5416

From UK dial in local number: +44 0207 081 9440

From USA toll free (US only): +1866 717 8634

 

Access code for all numbers: 814642

 

Page 5 of 13 Total Pages


LAFARGE

 

Consolidated Figures (YTD)

 

Sales

(Millions of euros)

 

     30-Sep-05

   30-Sep-04

   05/04

 
               (current)  

By geographical zone of destination

                

Western Europe

   4,711    4,553    3 %

North America

   3,282    2,938    12 %

Mediterranean Basin

   494    420    18 %

Central and Eastern Europe

   663    573    16 %

Latin America

   506    436    16 %

Africa

   1,032    874    18 %

Asia /Pacific

   1,071    1,076    0 %

By business line

                

Cement

   5,634    5,174    9 %

Aggregates & Concrete

   3,920    3,515    12 %

Roofing

   1,108    1,123    -1 %

Gypsum

   1,081    1,009    7 %

Others

   16    49    -67 %
    
  
      

Total

   11,759    10,870    8.2 %
    
  
      

 

Page 6 of 13 Total Pages


LAFARGE

 

Cement (YTD)

 

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidaries)

(millions of tonnes)

 

     30-Sep-05

   30-Sep-04

   05/04

    05/04

 
               (current)     (like for like)  

Western Europe

   24.0    24.3    -1 %      

North America

   16.1    15.8    2 %      

Mediterranean Basin

   8.0    7.8    3 %      

Central and Eastern Europe

   8.5    8.1    5 %      

Latin America

   5.0    4.5    11 %      

Africa

   9.5    9.0    6 %      

Asia/Pacific

   21.0    21.1    0 %      
    
  
  

 

Total

   92.1    90.6    1.7 %   1.2 %
    
  
  

 

Sales (after elimination of inter divisional sales by destination)

(Millions of euros)

 

 

 

     30-Sep-05

   30-Sep-04

   05/04

    05/04

 
               (current)     (like for like)  

Western Europe

   1,723    1,680    3 %      

North America

   1,154    1,012    14 %      

Mediterranean Basin

   396    344    15 %      

Central and Eastern Europe

   430    361    19 %      

Latin America

   314    277    13 %      

Africa

   813    698    16 %      

Asia/Pacific

   804    802    0 %      
    
  
  

 

Total consolidated sales

   5,634    5,174    8.9 %   7.9 %
    
  
  

 

Sales (before elimination of inter divisional sales by origin)

(Millions of euros)

 

 

 

     30-Sep-05

   30-Sep-04

   05/04

    05/04

 
               (current)     (like for like)  

Western Europe

   1,889    1,850    2 %      

North America

   1,296    1,149    13 %      

Mediterranean Basin

   395    333    19 %      

Central and Eastern Europe

   433    367    18 %      

Latin America

   393    339    16 %      

Africa

   939    785    20 %      

Asia/Pacific

   787    793    -1 %      
    
  
  

 

Total before elimination of interdivisional sales

   6,132    5,616    9.2 %   8.1 %
    
  
  

 

 

Page 7 of 13 Total Pages


LAFARGE

 

Aggregates & Concrete (YTD)

 

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidiaries)

 

Aggregates

(millions of tonnes)

 

          30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                    (current)     (like for like)  

Western Europe

        60.8    58.2    4 %      

North America

        100.4    99.0    1 %      

Other countries

        18.1    16.1    12 %      
         
  
  

 

Total

        179.3    173.3    3.5 %   0.6 %
         
  
  

 

 

Concrete

(millions of cbm)

 

          30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                    (current)     (like for like)  

Western Europe

        11.7    11.0    6 %      

North America

        9.0    9.2    -2 %      

Other countries

        8.6    7.6    13 %      
         
  
  

 

Total

        29.3    27.8    5.4 %   4.8 %
         
  
  

 

Sales (after elimination of inter divisional sales by destination)

(Millions of euros)

 

 

 

          30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                    (current)     (like for like)  

Aggregates & related products

   1,783    1,589    12 %      

Ready-mix concrete & concrete products

   2,137    1,926    11 %      

Total Aggregates & Concrete

   3,920    3,515    11.5 %   10.1 %
         
  
  

 

of which

   Western Europe    1,612    1459    10 %      

      “

   North America    1,792    1639    9 %      

      “

   Other countries    516    417    24 %      

Sales (before elimination of inter divisional sales by origin)

(Millions of euros)

 

 

 

          30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                    (current)     (like for like)  

Total Aggregates & Concrete

   3,931    3,530    11.4 %   10.0 %
         
  
  

 

Aggregates & related products

   2,052    1,837    11.7 %   9.4 %
                         

of which pure Aggregates

   Total    1,515    1,382    10 %      
     Western Europe    707    648    9 %      

      “

   North America    682    635    7 %      

      “

   other countries    126    99    27 %      

Ready-mix concrete & concrete products

   2,151    1,940    10.9 %   10.5 %
                         

of which Ready-mix

   Total    2,042    1,830    12 %      
     Western Europe    918    831    10 %      

        “

   North America    706    664    6 %      

        “

   other countries    418    335    25 %      

Eliminations intra A&C

        -272    -247    10 %      

 

Page 8 of 13 Total Pages


LAFARGE

 

Roofing (YTD)

 

Volumes by destination (adjusted for the contributions of our proportionally consolidated subsidiaries)  
         30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                   (current)     (like for like)  

Concrete roof tiles

   (millions of m²)                      

Western Europe

       42.4    46.2    -8 %      

North America

       17.9    16.8    7 %      

Other countries

       31.2    32.8    -5 %      

Clay roof tiles

   (millions of m²)                      

Western Europe

       17.8    18.0    -1 %      

Other countries

       2.0    1.7    18 %      

Chimneys

   (kms)   2,803    2,241    25 %      

Sales (after elimination of inter-divisional sales by destination)

(Millions of Euros)

 

 

 

         30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                   (current)     (like for like)  

Total

       1,108    1,123    -1.3 %   -3.4 %
        
  
  

 

Western Europe

       805    841    -4 %      
     Germany   243    306    -21 %      
     Other countries   562    535    5 %      

Other countries

       303    282    7 %      

Sales (before elimination of inter divisional sales by origin)

(Millions of Euros)

 

 

 

         30-Sep-05

   30-Sep-04

   05/04

    05/04

 
                   (current)     (like for like)  

Total

       1,108    1,123    -1.3 %   -3.4 %
        
  
  

 

of which concrete roof tiles

   Western Europe   362    400    -10 %      

      “

   North America   94    82    15 %      
     Other countries   80    82    -2 %      

of which clay roof tiles

       194    200    -3 %      

of which chimneys (1)

       159    140    14 %      

of which other roofing products

       219    219    0 %      

(1) Including the “other roofing products” of the Chimney business.

 

Page 9 of 13 Total Pages


LAFARGE

 

Gypsum (YTD)

 

Volumes of gypsum wallboard (adjusted for the contributions of our proportionally consolidated subsidiaries)

(millions of m²)

 

     30-Sep-05

   30-Sep-04

   05/04

    05/04

 
               (current)     (like for like)  

Total

   514    504    2.0 %   2.4 %
    
  
  

 

 

Sales (after elimination of inter-divisional sales by destination)

(Millions of euros)

 

     30-Sep-05

   30-Sep-04

   05/04

    05/04

 
               (current)     (like for like)  

Total

   1,081    1,009    7.1 %   7.3 %
    
  
  

 

of which Western Europe

   562    548    3 %      

of which North America

   236    196    20 %      

of which other countries

   283    265    7 %      

Sales (before elimination of inter divisional sales by origin)

(Millions of euros)

 

 

 

     30-Sep-05

   30-Sep-04

   05/04

    05/04

 
               (current)     (like for like)  

Total

   1,093    1,020    7.2 %   7.4 %
    
  
  

 

of which Western Europe

   594    574    3 %      

of which North America

   236    196    20 %      

of which other countries

   263    250    5 %      

 

Page 10 of 13 Total Pages


Sales September 30th 2005

Ytd like for like Sales variance analysis by region and in major markets.*

 

     Volume effect

    Other effects **

   

Activity variation

vs 2004


 
CEMENT                   

Western Europe

   -3.0 %   5.8 %   2.8 %

France

   1.2 %   4.0 %   5.2 %

United Kingdom

   -5.9 %   8.4 %   2.5 %

Spain

   1.8 %   4.5 %   6.3 %

Germany

   -14.8 %   19.1 %   4.3 %

Greece

   -5.3 %   3.4 %   -1.9 %

Central Europe

   7.8 %   6.5 %   14.3 %

Poland

   -5.0 %   0.1 %   -4.9 %

Romania

   13.6 %   -2.4 %   11.2 %

Serbia

   6.7 %   20.1 %   26.8 %

Russia

   7.7 %   33.6 %   41.3 %

Mediterranean Basin

   11.9 %   11.4 %   23.3 %

Turkey

   16.0 %   26.9 %   42.9 %

Morocco

   2.0 %   2.7 %   4.7 %

Jordan

   15.3 %   11.4 %   26.7 %

Egypt

   11.9 %   14.6 %   26.5 %

North America

   1.4 %   11.8 %   13.2 %

Latin America, Caraibs

   2.5 %   -4.3 %   -1.8 %

Brazil

   2.1 %   -26.6 %   -24.5 %

Venezuela

   11.2 %   9.9 %   21.1 %

Chile

   0.5 %   5.1 %   5.6 %

Africa, Indian Ocean

   5.2 %   12.9 %   18.1 %

Kenya

   12.4 %   10.5 %   22.9 %

Nigeria

   -0.6 %   15.9 %   15.3 %

South Africa

   12.7 %   6.5 %   19.2 %

Asia, Middle East

   0.4 %   -2.2 %   -1.8 %

Indonesia

   -6.8 %   7.6 %   0.8 %

Malaysia

   10.4 %   -10.8 %   -0.4 %

Philippines

   -9.8 %   15.4 %   5.6 %

India

   6.0 %   0.7 %   6.7 %

South Korea

   -9.1 %   -7.5 %   -16.6 %

Total CEMENT

   1.2 %   6.9 %   8.1 %

AGGREGATES and related activities

                  

France (pure Aggregates)

   -1.9 %   6.7 %   4.8 %

United Kingdom (pure Aggregates)

   -3.8 %   5.3 %   1.5 %

North America (pure Aggregates)

   2.1 %   6.8 %   8.9 %

Pure Aggregates

   0.6 %   6.1 %   6.7 %

Total Aggregates and related activities

               9.4 %

CONCRETE and related activities

                  

France (readymix)

   6.4 %   3.7 %   10.1 %

United Kingdom (readymix)

   3.0 %   6.0 %   9.0 %

North America (readymix)

   -2.0 %   8.2 %   6.2 %

Total ReadyMix

   4.8 %   5.7 %   10.5 %

Total Concrete and related activities

               10.5 %

* Variance on like for like sales on domestic markets before elimination of sales between Divisions
** Other effects : including price effects, product and customer mix effects

 

Page 11 of 13 Total Pages


Sales September 30th 2005

Ytd like for like Sales variance analysis by region and in major markets.*

 

     Volume effect

    Other effects **

   

Activity variation

vs 2004


 
ROOFING                   

Western Europe Concrete T&F

   -8.4 %   -1.3 %   -9.7 %

Western Europe Clay T&F

   -1.3 %   -2.2 %   -3.5 %

UK

                  

Concrete

   -7.2 %   1.4 %   -5.8 %

Clay

   -5.6 %   3.1 %   -2.5 %

France

                  

Concrete

   -2.6 %   2.0 %   -0.6 %

Clay

   -4.9 %   2.7 %   -2.2 %

Germany

                  

Concrete

   -19.5 %   -6.6 %   -26.1 %

Clay

   -3.0 %   -8.1 %   -11.1 %

United States (Concrete)

   6.4 %   12.6 %   19.0 %

Chimneys

   3.3 %   -2.6 %   0.7 %

Accessories

         -1.7 %   -1.7 %

Total ROOFING

               -3.4 %
GYPSUM                   

BOARDS

   2.4 %   4.6 %   7.0 %

Western Europe

   0.9 %   3.3 %   4.2 %

North America

   4.3 %   18.8 %   23.1 %

Asia, Pacific

   0.5 %   -3.5 %   -3.0 %

Total GYPSUM

               7.4 %

* Variance on like for like sales on domestic markets before elimination of sales between Divisions
** Other effects : including price effects, product and customer mix effects

 

Page 12 of 13 Total Pages


Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date October 20, 2005   Lafarge
    (Registrant)
    By:  

/s/ Jean-Pierre Cloiseau


    Name:   Jean-Pierre Cloiseau
    Title:   Senior Vice President, Finance

 

Page 13 of 13 Total Pages