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EARNINGS POLL-France's Lafarge H1 net seen down 62 pct

Published 07/28/2009, 01:05 PM
Updated 07/28/2009, 01:08 PM
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* Lafarge H1 results July 31

* H1 net profit seen down 62 percent at 911 million eur

PARIS, July 28 (Reuters) - Lafarge is expected to report a 62 percent drop in interim results on Friday, with investors focusing on whether the French building materials group revises its outlook for 2009 global cement sales and how this may affect its future earnings.

A Reuters poll of seven analysts showed Lafarge, the world's biggest cement maker by market capitalisation, may have earned 911 million euros ($1.30 billion) in the six months to end-June.

Lafarge, which supplies cement, aggregates, concrete and gypsum, in May revised its forecast for global cement sales this year to a drop of up to 5 percent, compared to a 3 percent drop previously, as economic conditions continued to deteriorate, hitting construction activity worldwide.

The French group said last month it would issue a new forecast at the end of July if needed.

Lafarge, which competes with Holcim of Switzerland and Mexico's Cemex, is also expected to post a near-31 percent drop in operating income, as construction in the U.S. and European markets continues its long slump.

Lafarge and Holcim in May said 2009 would be a tough year with no turnaround until 2010.

Both firms have unveiled steps to shore up finances strained by financial costs linked to acquisitions made prior to the financial crisis -- at a time when they were trying to build up their presence in fast-growing emerging markets.

Lafarge made a 1.5 billion euro rights issue and has said it would step up cost cuts and target a minimum of 1 billion euros in divestments.

Below is a poll of analyst forecasts.

LAFARGE, JULY 31:

(figures in millions of euros, seven analysts polled)

NET EBIT REV

AVERAGE 343.75 1117.5 8142

MEDIAN 351.50 1118.5 8150

HIGHEST 356.00 1155.0 8270

LOWEST 316.00 1076.0 7980

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Q2 2008 911.00 1611.0 9069 Percent change (based on average)

--- -62% -30.6% -10%

(Reporting by Sophie Taylor)

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