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LAFARGE CORPORATION ADOPTS NEW ACCOUNTING RULES

 RESTON, Va., Jan. 7 /PRNewswire/ -- Lafarge Corporation (NYSE: LAF; TSE, ME), one of the leading construction materials companies in the United States and Canada, announces the adoption of new accounting rules that have been issued by the Financial Accounting Standards Board. The new rules apply to postretirement benefits (FAS 106) and income taxes (FAS 109).
 The new accounting rules will be adopted retroactive to Jan. 1, 1992. Earnings for the first three quarters of 1992 will be restated.
 FAS 106 requires accrual of postretirement benefits over an employee's career. Lafarge will recognize accumulated obligations as of Jan. 1, 1992, by recording a one-time, after-tax charge in the first quarter of 1992 of $86 million. Annual operating expenses will increase as a result of the change from a pay-as-you-go method to the new accrual method. The increase in 1992 will be approximately $6 million.
 FAS 109 requires the use of new methods to calculate income tax expense when income and expenses reported in the financial statements are reportable in a different year for income tax purposes. Lafarge will record a one-time improvement to income in the first quarter of $24 million. Operating expenses will increase by $3 million annually as a result of depreciation on an increase in the valuation of property, plant and equipment that is required under the new accounting rules.
 The one-time cumulative impact in the first quarter of 1992 from adopting these two accounting rules will be an after-tax charge of $62 million. In addition, operating expenses in 1992 will increase by $9 million pre-tax.
 Lafarge currently operates 16 full-production cement plants, three cement grinding facilities and more than 100 distribution facilities throughout the United States and Canada, with an annual productive capacity of more than 15 million tons of cement. The company also has more than 450 construction materials operations and is one of the largest suppliers of ready-mixed concrete and aggregates in North America. Systech Environmental Corporation, a Lafarge subsidiary, is a leader in co-processing, or recycling industrial waste into fuel for cement kilns.
 Based in Reston, Lafarge Corporation is a Fortune 500 company with 8,300 employees and 1991 sales of $1.6 billion. Its majority shareholder, Lafarge Coppee of Paris, is one of the world's largest producers of building materials with operations in 35 countries and 1991 sales of $5.6 billion.
 -0- 1/7/93
 /CONTACT: Jean-Pierre Cloiseau of Lafarge Corporation, 703-264-3670/
 (LAF)


CO: Lafarge Corporation ST: Virginia IN: CST SU: ACC

MH -- DC005 -- 2684 01/07/93 12:36 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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