Major plant shutdown knocks Lafarge interim results

A depressed set of interims from Lafarge as the company had a major plant shutdown for two and a half months to facilitate refurbishment of its kiln coolers, cement milling plants, transport systems and packaging plant.

Thus the attributable loss for the period was $368,573 against an attributable profit of $1.5 million the prior period. Domestic cement sales however increased 11.4% supporting a 27.6% growth in gross revenues to $21.9 million.

Export clinker volumes were more adversely impacted by the shutdown, declining 7.2% as the company prioritised domestic cement demand. High international oil prices and the cost of the plant shutdown resulted in an operating loss of $109,196 down from a $2.3 million profit.

The cash flow position was obviously weighed down by $5.3 million utilised in investing activities mainly relating to the refurbishment. On the balance sheet the current portion of the long term debt amounts to $5 million.

Management expects the refurbishments to result in improved product availability for the remainder of the year. We also expect improving activity in the construction industry, by both government and private players and also from the mining sector to support domestic cement sales growth.