Lafarge mulling options?

According to a report from the Aggregates Research Industries web site, Lafarge North America Inc. is actively seeking buyers for some sectors of its business operations in North America. Speaking on condition of anonymity, a company representative has indicated that large slices of their operating sites may be put up for sale. The recent downturn in the economy has made business conditions difficult, with cement sales down more than 20 percent in the United States in 2008.

The businesses rumored to be for sale are: The company's asphalt and paving business in the U.S. and Canada, including the Contracting Division; and The company's aggregates and concrete business in Colorado and New Mexico. Other options that are being studied according to the source are the mothballing of the company's southeast concrete operations, which is reportedly down by more than a third in this region. Your comment?

Hot merger rumor!

A major industry financial transaction may be brewing, according to sources. Construction materials giant Holcim has declined to comment on rumors that it plans to launch a hostile takeover of Lafarge SA, with backing from a large financier, possibly from Venezuela or Russia. Lafarge has also refused to comment. Its balance sheet has been significantly improved through its Excellence 2008 initiative, even though company revenues have dropped through the reduction of construction globally. Holcim sees the significant cost reductions that are possible through a merger of the two companies. Original article here. Your comment?

Lafarge surges

Lafarge is reporting that net profit in the first quarter was up substantially and ahead of its estimate. In a statement, the company said good first-quarter trends confirmed its view that markets will be good in 2007, and predicted that full-year results will exceed those of last year. Sales growth was sustained in most markets, and while volumes were down in North America, current operating profit was up due to price increases and cost cuts. Lafarge said it expects strong demand and prices for cement through 2007, but sees a slight slowdown in North America. Your comment?

Lafarge on the grow

Lafarge is sitting pretty, according to its latest trading report. The company said annual profit rose 25 percent after the it increased the size of plants in China and India and bought full control of its North American unit. It spent $3.5 billion last year to acquire the rest of Lafarge North America Inc. to speed decision-making in the company's biggest market as homebuilding slows. Lafarge also said it expects to beat its earnings growth targets through 2008 after making acquisitions to bolster revenue, secure raw-material supplies and tap demand in faster-growing emerging markets. Your comment?