Annual Report 2011 - Analist.be

Overview of the activities - LafargeFinancial reportConsolidated turnover increased by 3%to EUR 15,284 million, compared toEUR 14,834 million in 2010. At constantgroup structure and exchange rates, theturnover grew by 4.5% comparedto 2010.Current operating income declinedby 9% to EUR 2,179 million in 2011,compared to EUR 2,393 million in 2010.The decline is identical at constantgroup structure and exchange rates,as the effects of strong inflation werenot totally offset by higher volumesand the major cost-cutting measuresimplemented in all segments.• In the Cement business line, currentoperating income fell by 12% toEUR 1,968 million in 2011, comparedto EUR 2,230 million in 2010, and9% at constant group structure andexchange rates. Expressed as apercentage of turnover for the branch,current operating income stood at18.5% in 2011, compared to 21% in2010, as cost-cutting measures failedto offset higher production costs.• In Aggregates & Concrete, currentoperating income increased by 10%to EUR 237 million in 2011, comparedto EUR 216 million in 2010, a 2%increase at constant group structureand exchange rates. Expressed asa percentage of turnover for thebranch, current operating incomeexpanded to 4.5% in 2011, comparedto 4.2% in 2010.Net income, group’s share, fellby 28% to EUR 593 million in 2011compared to EUR 827 million in 2010.Net income per share reflected thesame trend at EUR 2.07 comparedto EUR 2.89 in 2010.Net cash flow generated by operatingactivities amounted to EUR 1,597 millionin 2011 compared to EUR 2,098 millionin 2010, primarily under the effect ofdecline in operating income.Maintenance investments amountedto EUR 389 million in 2011, comparedto EUR 337 million in 2010.Internal development investmentsdecreased to EUR 665 million,compared to EUR 914 million in 2010.These investments were realisedessentially in the Cement branch, withprojects such as capacity expansionsin eastern India, China and Nigeria.The group also collected more thanEUR 2.2 billion in divestments, includingthe disposal of the Gypsum activitiesin Australia, Europe, Asia and LatinAmerica and the sale of the Cement,Aggregates & Concrete activities in thesouth-eastern United States.Consolidated net financial debtdecreased by 14% to EUR 11,974 million,compared to EUR 13,993 million at theend of 2010.The Board of Directors will proposeto the General Meeting on 15 May 2012to reduce the dividend distributionto EUR 0.50 per share, for a total payoutof around EUR 144 million, representing35% of the group’s current net income(net income excluding capital gainof EUR 466 million on disposalsand excluding an impairment ofEUR 285 million).Geographical breakdown of sales (in %) EBITDA margin evolution by activities (in %) Return on average capital employed evolutionby activities (in EUR million)Asia 16% Asia 16% Asia 16%Latin Latin LatinAmerica America 7% America 7% 7%Central Central & Central & &Eastern Eastern EasternEurope Europe Europe9% 9% 9%22% Western 22% Western 22% Western 30Europe Europe Europe25201510530252015105302525.7201510528.625.728.625.728.68.89.58.89.58.89.586428 86425.366.6425.36.65.36.63.43.43.43.43.43.44.95.84.95.84.95.8Middle Middle MiddleEast & East & East &Africa 25% Africa 25% Africa 25%020% North 20% North 20% NorthAmerica America America00CementCementCementAggregates &ConcreteAggregates &ConcreteAggregates &Concrete00Cement0CementCementAggregates &ConcreteAggregates &ConcreteAggregates &Concrete GroupGroup2011 2010Group44 Annual Report 2011