Lafarge Q4 profit sharply lower, announces rights issue

Lafarge reported fourth-quarter net income 40 million euros, sharply lower than the 375 million euros in profits last year. Accelerating economic slowdown and unfavorable weather conditions hurt fourth quarter volumes, but pricing remained robust and sales rose 7%. Focus for 2009 will be on repairing the balance sheet after net debt rose 94% during 2008 following its acquisition of Orascom. A 1,5 billion euro rights issue was also announced.