Lafarge operates with a 25-28% profit margin

French group Lafarge last year posted turnover worth 240 million euros, 20% higher from the level reached in 2004.

“Sales are growing fast because Romania is growing fast. The construction materials market had a really good performance last year. We had growth on each business segment due to the rising demand on the constructions market,” stated Philippe Questiaux, the general manager of Lafarge Ciment company. The only noticeable change is the change of Lafarge Romcim into Lafarge Ciment.

Lafarge representative specified the profit margin registered by the company was unchanged from the level of 2004, that is a value of around 25-28%. Under the circumstances, the net income derived by all the units that the company has operating on the domestic market is likely to revolve around 57-63 million euros, higher compared with the level reported in 2004.

“I believe the profit margin will be around the level posted in 2004. Indeed, sales have advanced, but so have production costs due to higher energy rates and international quotes of oil products,” Questiaux explained. The results are for all the three units of the company-Lafarge Ciment, Lafarge Agregate si Betoane and Lafarge Arcom Gips.

As regards the division he runs, Questiaux estimates this year”s cement sales will rise by 10-12% from the level of 175 million euros posted at the end of last year.

“The advance will be generated by the high cement demand, as the Romanian market is following the same upward trend this year,” stated Questiaux. He considers that around 60-70% of cement sales are generated by the residential segment.

Beside financial results, the company”s officials also announced the change of the company”s logo as a result of the implementation of the new brand policy of Lafarge group, unifying the visual identity of all units under the name of Lafarge Romania.

“To do away with any ambiguity related to Lafarge brand on the domestic market, we”ve decided to unify existing brands. We”ve made this image change in order to convey a consistent message on Lafarge products globally, and not with the purpose of boosting sales,” Questiaux also said.

He specified that as regards the Romcim name, this would still be a brand, but would be applied to a product.

Costs related to the entire rebranding campaign amounted to 200,000 euros.

The main competitors of Lafarge Ciment company, both domestically and internationally, are Germany”s HeidelbergCement and Switzerland”s Holcim.

The French Lafarge group accounts for one third of the market. The French group has been operating in Romania since 1997, after acquiring Romcim cement producer. roxana.petrescu@zf.ro