FINANCIAL NEWS

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LAFARGE posted net income of $86.7 million for the second quarter of 2001, compared with $95.7 million in the second quarter of 2000. Consolidated operating profit before corporate overhead in the second quarter fell by 17% to $149.8 million from $180.2 million in 2000. Lafarge's cement and cementitious materials operations posted an operating profit of $97 million during the second quarter, a 12% drop from last year. Revenue rose 1% to %350.4 million. Second-quarter operating results were affected by the timing of major plant maintenance programs, start-up costs for the company's new kiln line outside of Kansas City, and a disruption of normal distribution activity in the Mississippi River area caused by spring flooding. Operating results were also affected by a negative exchange rate impact of $2.8 million in the quarter due to the weakened Canadian dollar. Company-wide cement shipments of 4 million tons in the second quarter were 1% ahead of last year. Canadian sales volumes increased 2% due to higher sales in Ontario, while U.S. sales volumes were flat compared with last year. In Canada, average prices increased 4% in the second quarter, while U.S. selling prices were in line with last year.

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