Cement giant Lafarge sees recovery in late 2010

PARIS: French building giant Lafarge, the world's biggest cement maker, on Friday forecast the beginning of a recovery in the construction industry in developed economies only from the second half of 2010.

The forecast came as the company unveiled results showing its net profit fell 38 per cent to 404 million euros (601 million dollars) in the third quarter on a 12-month comparison, while sales dropped 20 per cent to 4.25 billion euros.

"Results continue to be impacted by economic slowdown," the group said, predicting that annual cement volumes in the company's markets were expected to decline by between six and eight per cent in 2009.

"We anticipate volumes in mature markets may start to recover as of the second half of 2010" due to infrastructure spending in government stimulus plans and gradual improvement in the economy, it said.

In contrast to declines in developed economies, however, the company added that "the strength of our emerging markets, excluding Central and Eastern Europe, continue to favourably impact our results."