FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

 

For the month of:		July, 2005
Commission File Number :		001-15218

 

LAFARGE

(Translation of registrant’s name into English)

 

61, rue des Belles Feuilles

75116 Paris

France

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F       X       Form 40-F               

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):         

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):         

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes            No     X    

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            

 

Enclosures:

 

Press Release, dated July 28th, 2005, relating to: Lafarge 2005 Half Year sales

 

Page 1 of 12 total pages

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PRESS RELEASE

 

Euronext: LG, NYSE: LR		Paris, July 28, 2005

 

2005 first half sales rise 6.3% to € 7,220 million

on positive pricing trends in many markets

 

Sales were up 6.3% to € 7,220 million as at June 30, 2005 compared to first half 2004 sales of € 6,794 million. The net scope effect was at 0.9%. Foreign exchange variations impacted sales by -0.6%. Like for like sales rose by 6.0% for the first six months of the year and by 9.0% in the second quarter.

 

“As we anticipated, the strong level of sales in the first half results from overall favorable market conditions and from successful price increase implementation in most markets. Our previously stated expectation of a 6 to 8% like for like growth of our operating income on ordinary activities for 2005 remains unchanged, in the context of a few difficult markets and higher energy and transportation costs” said Jean-Jacques Gauthier, Chief Financial Officer and Executive Vice President.

 

The sales report for each division, excluding foreign exchange, scope effects, and before inter divisional sales elimination is as follows:

 

CEMENT: +6.5% (+2.1% in Quarter 1, +9.9% in Quarter 2).

 

Cement sales grew 6.5% with a very good second quarter. Volumes in 2005 were in line with the strong level achieved in the first half of 2004. Year on year price growth was significant in an environment of higher energy and transportation costs compared to the same period last year.

 

In Western Europe sales were slightly up overall with good growth in France and Spain. Noticeable price improvements were experienced in Germany and the UK. The favorable pricing trends across much of the region offset the significantly lower volumes in Germany and Greece.

 

North America posted strong sales, with sustained volume growth and strong price increases throughout the first half.

 

Sales in Eastern Europe grew in the first six months after a particularly weak first quarter. Romania, Serbia and Russia continue to see robust sales. The construction market in Poland remains uncertain with volumes down on 2004 levels.

 

Strong sales growth was recorded in the Mediterranean Basin particularly in Jordan, Turkey, Egypt and with an improving trend in Morocco.

 

In Africa, sales benefit from favorable volume and pricing trends across the region.

 

In Asia, construction markets remain very mixed across the region. Volumes grew in India and Malaysia but remained weak in South Korea in a context of depressed demand, and saw a decline in the Philippines. The decline in sales is essentially due to the severe price competition experienced in Malaysia and South Korea in the first half. Prices continued to improve in the Philippines.

 

In Latin America, sales were slightly down as severe price competition caused a sharp fall in Brazil. Venezuela continued to show good improvement.

 

AGGREGATES & CONCRETE: +9.8% (+4.5% in Quarter 1, +13.6% in Quarter 2)

 

The strong 9.8% growth in Aggregates and Concrete has been driven by solid pricing gains in a context of rising costs throughout most markets and good volumes, particularly in the second quarter.

 

Page 2 of 12 total pages

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Aggregates sales were particularly strong in North America, driven by favorable volumes and prices. In Western Europe, sales are up as a result of good pricing trends, although volumes remain down after the weak, weather impacted, first quarter and a decline of the UK market. Good market conditions were seen in the main other markets. Sales were up strongly in the Asphalt and Paving activity, driven by North America.

 

In Concrete, sales increased strongly in Western Europe due to good pricing trends and very good volumes in most markets. In North America good price and product mix improvements more than offset the slight weather related decline in volumes. In most other countries, sales increased strongly.

 

ROOFING: -5.9% (-9.1% in Quarter 1, -3.8% in Quarter 2)

 

In Western Europe, in comparison to a very strong first half 2004, sales are down in many countries, with a severe drop in both volumes and prices in Germany. Good housing market conditions continued to drive sales growth in the United States.

 

GYPSUM: +7.1% (+4.5% in Quarter 1, +9.7% in Quarter 2)

 

The increase in sales was largely driven by favorable market conditions in North America, with higher prices and good volume growth. Sales in Western Europe were up with generally favorable markets. In Asia sales declined as a result of a weaker market in South Korea coupled with some price competition.

 

NEGATIVE FOREIGN EXCHANGE IMPACT OF –0.6% AMOUNTING TO € 37 MILLION

 

The negative foreign currency translation impact on sales was limited, generated essentially from the decline in the US Dollar (- €53 million) versus the euro, partly offset by the appreciation of several other currencies.

 

SCOPE CHANGES OF +0.9% AMOUNTING TO € 62 MILLION

 

Sales from acquisitions amounted to a positive scope effect of € 115 million largely due to the acquisition of Cementos Selva Alegre in Ecuador in December 2004, of Hupfer Holdings in France (May 2004) and of the assets of The Concrete Company in the United States (April 2004). The negative scope effect totaled € 53 million.

 

CONSOLIDATED SALES AS AT June 30, 2005

 

		June 30, 2005 € Million		June 30, 2004 € Million		Variation			At constant scope and foreign exchange			At constant scope and foreign exchange, before inter divisional sales elimination
Cement		3,482		3,275		+6.3	%		+6.1	%		+6.5	%
Aggregates & Concrete		2,329		2,097		+11.1	%		+9.8	%		+9.8	%
Roofing		681		711		-4.2	%		-5.9	%		-5.9	%
Gypsum		717		676		+6.1	%		+6.3	%		+7.1	%
Others		11		35		-68.6	%		+15.4	%
TOTAL		7,220		6,794		+6.3	%		+6.0	%		NA

 

Page 3 of 12 total pages

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Lafarge’s next financial publication—2005 half year results—will be on September 8, 2005 (before the Euronext stock market opens).

 

Lafarge, the world leader in building materials, holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge employs 77,000 people in 75 countries and posted sales of €14.4 billion in 2004. Additional information is available on the web site at www.lafarge.com.

 

For release worldwide with simultaneous release in the United States.

 

COMMUNICATIONS:		INVESTOR RELATIONS:
Stéphanie Tessier: 33-1 44-34-92-32 stephanie.tessier@lafarge.com		James Palmer: 33-1 44-34-92-93 james.palmer@lafarge.com
Amanda Jones: 33-1 44-34-19-47 amanda.jones@lafarge.com		Danièle Daouphars: 33-1 44-34-92-93 daniele.daouphars@lafarge.com

 

 

Page 4 of 12 total pages

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LAFARGE

 

Consolidated Figures (YTD)

 

Sales
(Millions of euros)		2005S1		2004S1		05/04
						(current)
By geographical zone of destination
Western Europe		3,064		2,990		2	%
North America		1,834		1,645		11	%
Mediterranean Basin		291		259		12	%
Central and Eastern Europe		358		332		8	%
Latin America		320		284		13	%
Africa		654		557		17	%
Asia /Pacific		699		727		-4	%
By business line
Cement		3,482		3,275		6	%
Aggregates & Concrete		2,329		2,097		11	%
Roofing		681		711		-4	%
Gypsum		717		676		6	%
Others		11		35		-69	%
Total		7,220		6,794		6.3	%

 

Page 5 of 12 total pages

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LAFARGE

 

Cement (YTD)

 

Volumes by destination (adjusted for the contributions of our proportionally consolidated subsidiaries)
(millions of tonnes)		2005S1		2004S1		05/04			05/04
						(current)			(like for like)
Western Europe		15.6		15.7		-1	%
North America		9.6		9.1		5	%
Mediterranean Basin		4.9		4.9		0	%
Central and Eastern Europe		4.6		4.7		-2	%
Latin America		3.3		3.0		10	%
Africa		6.3		6.1		3	%
Asia/Pacific		14.0		14.3		-2	%
Total		58.3		57.8		0.9	%		0.3	%
Sales (after elimination of inter divisional sales by destination)
(Millions of euros)		2005S1		2004S1		05/04			05/04
						(current)			(like for like)
Western Europe		1,120		1,103		2	%
North America		650		574		13	%
Mediterranean Basin		232		212		9	%
Central and Eastern Europe		229		208		10	%
Latin America		204		180		13	%
Africa		522		452		15	%
Asia/Pacific		525		546		-4	%
Total consolidated sales		3,482		3,275		6.3	%		6.1	%
Sales (before elimination of inter divisional sales by origin)
(Millions of euros)		2005S1		2004S1		05/04			05/04
						(current)			(like for like)
Western Europe		1,234		1,227		1	%
North America		735		652		13	%
Mediterranean Basin		234		205		14	%
Central and Eastern Europe		232		211		10	%
Latin America		254		223		14	%
Africa		592		495		20	%
Asia/Pacific		516		539		-4	%
Total before elimination of interdivisional sales		3,797		3,552		6.9	%		6.5	%

 

Page 6 of 12 total pages

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LAFARGE

 

Aggregates & Concrete (YTD)

 

Volumes by destination (adjusted for the contributions of our proportionally consolidated subsidiaries)
Aggregates				2005S1		2004S1		05/04			05/04
(millions of tonnes)								(current)			(like for like)
Western Europe				39.7		38.4		3	%
North America				57.5		54.1		6	%
Other countries				10.5		9.8		7	%
Total				107.7		102.3		5.3	%		1.7	%
Concrete				2005S1		2004S1		05/04			05/04
(millions of cbm)								(current)			(like for like)
Western Europe				7.7		7.4		4	%
North America				5.5		5.5		0	%
Other countries				5.3		4.8		10	%
Total				18.5		17.7		4.5	%		3.8	%
Sales (after elimination of inter divisional sales by destination)
(Millions of euros)				2005S1		2004S1		05/04			05/04
								(current)			(like for like)
Aggregates & related products				1,000		880		14	%
Ready-mix concrete & concrete products				1,329		1,217		9	%
Total Aggregates & Concrete				2,329		2,097		11.1	%		9.8	%
of which		Western Europe		1,056		953		11	%
“		North America		972		888		9	%
“		Other countries		301		256		18	%
Sales (before elimination of inter divisional sales by origin)
(Millions of euros)				2005S1		2004S1		05/04			05/04
								(current)			(like for like)
Total Aggregates & Concrete				2,337		2,107		10.9	%		9.8	%
Aggregates & related products				1,167		1,036		12.6	%		9.8	%
of which pure Aggregates		Total		913		826		11	%
		Western Europe		461		419		10	%
“		North America		382		349		9	%
“		other countries		70		58		21	%
Ready-mix concrete & concrete products				1,337		1,225		9.1	%		9.5	%
of which Ready-mix		Total		1,276		1,161		10	%
		Western Europe		609		554		10	%
“		North America		419		398		5	%
“		other countries		248		209		19	%
Eliminations intra A&C				-167		-154		8	%

 

Page 7 of 12 total pages

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LAFARGE

 

Roofing (YTD)

 

Volumes by destination (adjusted for the contributions of our proportionally consolidated subsidiaries)
				2005S1		2004S1		05/04			05/04
								(current)			(like for like)
Concrete roof tiles		(millions of m²)
Western Europe				26.0		28.7		-9	%
North America				11.6		11.0		5	%
Other countries				19.1		21.3		-10	%
Clay roof tiles		(millions of m²)
Western Europe				11.3		11.6		-3	%
Other countries				1.2		1.0		20	%
Chimneys		(kms)		1,667		1,402		19	%
Sales (after elimination of inter-divisional sales by destination)
(Millions of Euros)				2005S1		2004S1		05/04			05/04
								(current)			(like for like)
Total				681		711		-4.2	%		-5.9	%
Western Europe				499		534		-7	%
		Germany		141		192		-27	%
		Other countries		358		342		5	%
Other countries				182		177		3	%
Sales (before elimination of inter divisional sales by origin)
(Millions of Euros)				2005S1		2004S1		05/04			05/04
								(current)			(like for like)
Total				681		711		-4.2	%		-5.9	%
of which concrete roof tiles		Western Europe		221		249		-11	%
“		North America		60		53		13	%
		Other countries		48		52		-8	%
of which clay roof tiles				121		129		-6	%
of which chimneys (1)				95		86		10	%
of which other roofing products				136		142		-4	%

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(1)	Including the “other roofing products” of the Chimney business.

 

Page 8 of 12 total pages

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LAFARGE

 

Gypsum (YTD)

 

Volumes of gypsum wallboard (adjusted for the contributions of our proportionally consolidated subsidiaries)
(millions of m²)
		2005S1		2004S1		05/04			05/04
						(current)			(like for like)
Total		341		336		1.5	%		1.7	%
Sales (after elimination of inter-divisional sales by destination)
(Millions of euros)
		2005S1		2004S1		05/04			05/04
						(current)			(like for like)
Total		717		676		6.1	%		6.3	%
of which Western Europe		383		380		1	%
of which North America		149		125		19	%
of which other countries		185		171		8	%
Sales (before elimination of inter divisional sales by origin)
(Millions of euros)
		2005S1		2004S1		05/04			05/04
						(current)			(like for like)
Total		725		679		6.8	%		7.1	%
of which Western Europe		405		392		3	%
of which North America		149		125		19	%
of which other countries		171		162		6	%

 

Page 9 of 12 total pages

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Sales June 30th 2005

Ytd like for like Sales variance analysis by region and in major markets.*

 

		Volume effect			Other effects**			Activity variation vs 2004
CEMENT
Western Europe		-4.8	%		5.8	%		1.0	%
France		1.4	%		4.0	%		5.4	%
United Kingdom		-7.0	%		7.9	%		0.9	%
Spain		5.8	%		2.9	%		8.7	%
Germany		-21.7	%		18.9	%		-2.8	%
Greece		-11.7	%		3.7	%		-8.0	%
Central Europe		2.2	%		4.6	%		6.8	%
Poland		-16.6	%		2.6	%		-14.0	%
Romania		13.0	%		-1.0	%		12.0	%
Serbia		-3.1	%		20.1	%		17.0	%
Russia		4.6	%		15.1	%		19.7	%
Mediterranean Basin		9.4	%		9.6	%		19.0	%
Turkey		10.8	%		27.6	%		38.4	%
Morocco		-1.3	%		2.7	%		1.4	%
Jordan		15.9	%		8.0	%		23.9	%
Egypt		7.5	%		11.4	%		18.9	%
North America		2.8	%		11.9	%		14.7	%
Latin America, Caraibs		1.1	%		-1.8	%		-0.7	%
Brazil		1.3	%		-21.3	%		-20.0	%
Venezuela		7.3	%		9.8	%		17.1	%
Chile		-2.7	%		3.8	%		1.1	%
Africa, Indian Ocean		4.5	%		12.6	%		17.1	%
Kenya		17.8	%		9.4	%		27.2	%
Nigeria		-0.4	%		12.6	%		12.2	%
South Africa		9.1	%		10.1	%		19.2	%
Asia, Middle East		-1.1	%		-2.9	%		-4.0	%
Indonesia		-14.1	%		7.6	%		-6.5	%
Malaysia		8.6	%		-18.3	%		-9.7	%
Philippines		-6.9	%		18.1	%		11.2	%
India		8.5	%		0.2	%		8.7	%
South Korea		-14.9	%		-5.5	%		-20.4	%
Total CEMENT		0.3	%		6.2	%		6.5	%
AGGREGATES and related activities
France (pure Aggregates)		-4.7	%		6.0	%		1.3	%
United Kingdom (pure Aggregates)		-5.5	%		5.9	%		0.4	%
North America (pure Aggregates)		7.2	%		6.1	%		13.3	%
Pure Aggregates		1.7	%		4.7	%		6.4	%
Total Aggregates and related activities								9.8	%
CONCRETE and related activities
France (readymix)		6.8	%		3.5	%		10.3	%
United Kingdom (readymix)		4.8	%		6.4	%		11.2	%
North America (readymix)		-1.9	%		7.5	%		5.6	%
Total ReadyMix		3.8	%		5.7	%		9.5	%
Total Concrete and related activities								9.5	%

 

*	Variance on like for like sales on domestic markets before elimination of sales between Divisions

 

**	Other effects : including price effects, product and customer mix effects

 

Page 10 of 12 total pages

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Sales June 30th 2005

Ytd like for like Sales variance analysis by region and in major markets.*

 

		Volume effect			Other effects**			Activity variation vs 2004
ROOFING
Western Europe Concrete T&F		-10.3	%		-1.0	%		-11.3	%
Western Europe Clay T&F		-3.3	%		-2.5	%		-5.8	%
UK
Concrete		-8.8	%		4.6	%		-4.2	%
Clay		-10.9	%		5.9	%		-5.0	%
France
Concrete		-4.6	%		2.2	%		-2.4	%
Clay		-5.1	%		3.2	%		-1.9	%
Germany
Concrete		-22.7	%		-7.9	%		-30.6	%
Clay		-6.8	%		-11.4	%		-18.2	%
United States (Concrete)		5.9	%		12.2	%		18.1	%
Chimneys		-0.3	%		-1.2	%		-1.5	%
Accessories								-6.6	%
Total ROOFING								-5.9	%
GYPSUM
BOARDS		1.7	%		5.7	%		7.4	%
Western Europe		-1.4	%		5.4	%		4.0	%
North America		4.3	%		20.0	%		24.3	%
Asia, Pacific		-2.0	%		-5.1	%		-7.1	%
Total GYPSUM								7.1	%

 

*	Variance on like for like sales on domestic markets before elimination of sales between Divisions

 

**	Other effects : including price effects, product and customer mix effects

 

Page 11 of 12 total pages

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Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date July 29th, 2005		Lafarge
		(Registrant)
		By: /s/ Jean-Pierre Cloiseau
		Name: Jean-Pierre Cloiseau
		Title: Senior Vice President, Finance

 

Page 12 of 12 total pages