France’s Lafarge Group recorded a €112 million ($121 million) operational income from its Mediterranean Basin operations in 2002, a 10 percent decrease compared to figures from 2001. Losses were attributed to the change in accounting treatment of Morocco from global to proportionate consolidation.
Operating income at constant scope, depreciation method and exchange, and excluding the impact of the Morocco accounting treatment change grew by 21 percent. The impact of negative currency fluctuations on the region's operating income amounted to seven million euros.
Strong growth in income was realized in Morocco and Jordan due to the favorable market conditions. The small loss incurred in Turkey in 2001 was reversed to record an operating profit due to less bad debts. Egypt saw operating income decline in the context of the poor price trends partly offset by the positive impact on variable costs of the new production line at Alexandria.
Lafarge recorded a seven percent increase in total sales, mainly due to the full consolidation effect of Blue Circle. Operating income rose by 10 percent, which demonstrates an improvement of the operating margin. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
