Lafarge Malayan Cement Reports Significantly Higher Net Profits for Financial Year Ended 31 December 2006


Kuala Lumpur, Friday, 4 May 2007


Lafarge Malayan Cement Berhad (LMCB) presented to the shareholders the Group's 2006 financial results at their Annual General Meeting (AGM) today. Revenue in 2006 reached a record high of RM2.078 billion, an 11% increase from last year, with increased net profit from RM31 million in 2005 to RM173 million in 2006.


Group profit before tax was RM212 million, compared to RM29 million in 2005.  Alain Crouÿ, President and CEO of LMCB attributed the company's strong performance to the recovery in domestic cement price. Better export prices due to the tightening of supplies in the region and an improvement in the company's internal efficiencies also contributed to the better results in 2006.


Commenting on the company's financial results, Crouÿ said, "We turned in a solid performance for 2006. While the results were mostly credited to the recovery in domestic cement prices, management's continuous focus on our five priorities which are Safety, Reliability, Quality, Product Mix and People Mobilization as well as a renewed effort towards cost reductions, have also significantly contributed to achieving our better results.  However, our return on capital employed is still unsatisfactory due to the erosion in margins as a result of selling prices lagging cost increases and the need to continue to invest in new capital expenditure to sustain and improve the existing operations."


Moving forward, Crouÿ added that the outlook for 2007 looks positive, following the Government's announcement of a 9% upward revision in the ceiling price of cement late December 2006. He was also optimistic over the construction activities and cement demand in Malaysia which are expected to improve later in 2007, underpinned by the 9th Malaysia Plan projects.


"Apart from striving to help our customers to create value in their own businesses through innovation, we are continuing to invest strongly in hiring new talents and in our employees' training and development, not to mention our commitment in corporate social responsibility to the communities in which we operate," said Crouÿ. 


The proposed capital repayment to shareholders aimed at rewarding them and improving the capital structure of the Company had also been approved by the shareholders at the AGM today.


In conclusion, Crouÿ said, "Looking ahead, improved results from the Group's operating activities will be the main thrusts for growth this year. The Group is well on track to achieve another set of good results for 2007."


About Lafarge Malayan Cement Berhad

Lafarge Malayan Cement Berhad (LMCB) is the leader of the Malaysian cement industry and a major player in the Asian export market. It was incorporated in 1950 with its first cement plant built in Malaysia in 1953. LMCB is today the parent of a group of companies in Malaysia and Singapore whose core businesses are in the manufacturing and sale of cement, ready-mixed concrete and other related building materials. LMCB currently employs more than 1,500 people and operates a nationwide network of facilities, which includes three integrated cement plants in Langkawi, Kanthan and Rawang, a grinding plant in Pasir Gudang and distribution channels by road, rail and sea. Lafarge Malayan Cement Berhad is proud to serve Malaysia for the past 57 years and is committed to continue "Building Malaysia Together" in the coming years.


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About Lafarge

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 71,000 employees in over 70 countries, Lafarge posted sales of Euros 17 billion in 2006.


Lafarge has been committed to sustainable development for many years, pursuing a strategy that combines industrial know-how with performance, value creation, respect for employees and local cultures, environmental protection and the conservation of natural resources and energy. Lafarge is the only company in the construction materials sector to be listed in the 2007 ‘100 Global Most Sustainable Corporations in the World'. To make advances in building materials, Lafarge places the customer at the heart of its concerns. It offers the construction industry and the general public innovative solutions bringing greater safety, comfort and quality to their everyday surroundings.


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