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LAFARGE CORPORATION REPORTS 1991 LOSS

 LAFARGE CORPORATION REPORTS 1991 LOSS
 RESTON, Va., Jan. 23 /PRNewswire/ -- Lafarge Corporation


(NYSE: LAF), one of the leading construction materials companies in North America, today reported a loss for 1991 of $50.4 million. This compares to net earnings of $42.9 million in 1990. All 1990 results have been restated to reflect the acquisition in January 1991 of the Missouri Portland and Davenport Cement companies and related assets.
 Loss per common equity share for the year was 90 cents compared with net income of 77 cents per share in 1990. Net sales for 1991 decreased 11 percent from $1.77 billion in 1990 to $1.57 billion.
 While calling the company's performance "disappointing," Lafarge Corporation President and Chief Executive Officer Robert W. Murdoch remarked that it "reflects the severity of the recession that gripped most North American construction markets during the year." Severely affected areas included most of Canada, the Northeast and South- Central U.S. and Florida, where Lafarge Corporation's major markets are situated.
 Murdoch noted that the company still maintains a solid financial position. He added that the company's overall strategy in this recession was to sustain its activities during the year by limiting capital spending to projects required to maintain the integrity of its production facilities. Production was adjusted to keep inventories at optimum levels.
 Looking beyond 1991, Murdoch said he is "encouraged" by the passage in mid-December 1991 of the $151 billion Intermodal Surface Transportation Act which he said "will provide impetus for growth in many of Lafarge's markets." He added that "the significant drop in mortgage rates in both the United States and Canada will result in improved housing affordability, especially for first-time home buyers."
 Net sales before intercompany eliminations for Lafarge Corporation's Cement Group fell 9 percent, from $975.0 million in 1990 to $890.9 million in 1991. Cement shipments declined 13 percent to 12.4 million tons. While prices in Canada were relatively stable, U.S. net prices increased on average by 2 percent, a new and encouraging phenomenon in an economic down cycle, resulting from the strengthening of the Texas construction markets and the reduction in cement imports. Average cement cost of sales per ton increased by 5 percent from 1990 as a result of lower utilization rates of production capacity.
 Net sales before intercompany eliminations in the company's Construction Materials Group, which includes Systech Environmental Corporation, Lafarge's waste fuels subsidiary, fell 13 percent to $885.1 million from $1,016.1 million in 1990. Ready-mixed concrete volumes fell 17 percent, while aggregate volumes declined 13 percent from 1990. Lafarge's Construction Materials Group moved to contain the negative impact of the recession in 1991, especially in Ontario where many of the group's facilities are located. Cost reduction measures were taken and included early plant closures, consolidation of operations and personnel cutbacks.
 In the fourth quarter of 1991, Lafarge posted a $19.4 million loss or 34 cents per share. This was $24.6 million or 43 cents per share worse than the same quarter of 1990, which included a divestment gain.
 Lafarge Corporation currently operates 16 full-production cement plants, four cement grinding plants and more than 100 distribution facilities throughout the United States and Canada. Annual production capacity is 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 more than 8,500 employees. Its majority shareholder, Lafarge Coppee of Paris, is one of the world's largest producers of building materials with operations in 30 countries and 1990 sales of $6.0 billion.
 LAFARGE CORPORATION
 Financial Highlights
 (Unaudited and in thousands, except per share amounts)
 Quarter Ended Dec. 31, 1991 1990
 Net Sales $ 380,578 $ 433,158
 Net Income (Loss) $ (19,394) $ 5,228
 Net Income (Loss)
 Per Common Equity Share
 Primary $ (.34) $ .09
 Fully Diluted $ (.34) $ .09
 Average Number of Common
 Equity Shares Outstanding 56,506 55,717
 Year Ended Dec. 31, 1991 1990
 Net Sales $1,568,829 $1,769,562
 Net Income (Loss) $ (50,365) $ 42,876
 Net Income (Loss)
 Per Common Equity Share
 Primary $ (.90) $ .77
 Fully Diluted $ (.90) $ .77
 Average Number of Common
 Equity Shares Outstanding 55,925 55,805
 NOTE: Results for 1990 have been restated to reflect the acquisition of Cementus AG, MPC Holdings, Inc., and the assets of ProChem Technology, Inc. This acquisition has been accounted for in a manner similar to the pooling of interests method.
 -0- 1/23/92
 /CONTACT: Jean-Pierre Cloiseau, 703-264-3670, or Katrina Luba Farrell, 703-264-3612, both of Lafarge/
 (LAF) CO: Lafarge Corporation ST: Virginia IN: CST SU: ERN


MK-TW -- DC008 -- 2835 01/23/92 13:11 EST
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Date:Jan 23, 1992
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