Lafarge Swot

Lafarge Swot Lafarge S.A. COMPANY OVERVIEW Lafarge produces and sells building materials primarily cement, aggregates, ready mix, concrete, gypsum wallboard, and related products primarily under the “Lafarge” brand. The company primarily operates in Western Europe, North America, Asia and Latin America. It is headquartered in Paris, France and employs about 77,994 people. The company recorded revenues of $23,327 million during the financial year ended December 2010 (FY2010), an increase of 2% compared to 2009. Sales were negatively impacted by lower volumes, foreign exchange and the scope of operations as some of the businesses were divested. The EBITDA of the company was $5,214 million in FY2010, an increase of 0.4% compared to 2009. The net income was $1,607 million in FY2010, an increase of 6.5% compared to 2009. SWOT ANALYSIS Lafarge produces and sells building materials primarily cement, aggregates, ready mix, concrete, gypsum wallboard, and related products primarily under the “Lafarge” brand. Being a large player in fragmented and local markets and a strong market share position gives significant competitive advantages enabling the company to participate effectively in high growth markets as well as in developed markets as and when the economies recover. Strengths Leading company across the business segments Geographically well-positioned company Strong research and development base Weaknesses Non-compliance with environment regulations led to huge penalties and will tarnish brand image High unionization might have a negative impact on the employee related costs Threats The US and European construction markets continue to remain sluggish Rising energy