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| Lafarge presents ’Excellence 2008’ Lafarge, the world leader in building materials, unveils its detailed strategic plan, called "Excellence 2008". This plan confirms the group's determination to be the best in its sector. Lafarge has begun to transform its organization in order to create an accountable and mobilized management team. It also announced a cost-reduction program of €400 million, which takes into account the expected synergies from the buyout of minority interests in Lafarge North America and €60 million in cost reductions arising from the turnaround plan of the Roofing activity. The company will generate €1.5 billion in additional cash flow over the next three years by pursuing the program to improve working capital requirements, by tight controls on maintenance investments, by lowering the cost of investments to modernize existing plants or build new capacity, and through a divestment program over €1 billion by the end of 2008. The turnaround plan for the Roofing business, the aim of which is to reach an EBITDA of €350 million in 2008, is well underway and progressing rapidly. Lafarge announces its intention to explore opportunities to divest the Roofing business, if valuation conditions are met and the group can maintain a minority stake in this activity. As part of this plan, average annual EPS should grow at 10% by 2008, the return on capital employed (ROCE) is supposed to increase to 10% by year-end 2008, up from 8.5% at year-end 2005. write your comments about the article :: © 2006 Construction News :: home page |