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Lafarge quarterly profit drops 15% on tax liability

Feb, 23 2007

PARIS — Lafarge SA, the world's largest cement maker, said Friday its fourth-quarter fell 15 per cent as its tax liability rose. Profit dropped to €276-million euros ($421.2-million) in the three months through Dec. 31, from €323- million in the same period a year earlier, a company spokeswoman said. Full-year profit rose 25 per cent after the company gained full control of its North American unit. Profit rose to €1.37-billion from €1.1-billion euros, the company said in a statement. Sales rose 17 per cent to €16.91-billion. Lafarge also said it plans to buy back as much as €500-million of shares this year. “We saw a strong increase in our results, with positive trends in our markets, strong organic growth and tighter cost controls,” chief executive offier Bruno Lafont said. “Favourable trends continued in the fourth quarter, and our results should continue to improve in 2007.” Lafarge said this month that fourth-quarter revenue rose 10 per cent as the company benefited from rising demand. Total revenue for the three months through Dec. 31 rose to €4.2-billion compared with €3.8-billion in the same period a year earlier. The figures did not include income from Lafarge's roofing business, which it is selling.