Lafarge Africa halts capital expenditure, forecast lower sales
Lafarge Africa has said that it will freeze capital expenditure this year.
Chief Executive Khaled El Dokani made this known on Tuesday after the cement company forecast a drop in second-quarter sales.
The company lower estimate as the coronavirus pandemic hits demand.
Major infrastructure projects have been put on hold, El Dokani said, citing Nigeria’s lower oil revenue.
He explained that slump in oil prices affected revenue, with the company’s sales volumes also hit by the country’s coronavirus lockdown.
The Nigerian unit of Franco-Swiss building materials group LafargeHolcim did not provide a sales figure for the second quarter.
Sales for the corresponding period last year were ₦81.78 billion or $227.2 million.
Capital expenditure in the first three months of the year stood at ₦2.9 billion, down from ₦6.9 billion in the same period last year.
El Dokani said Lafarge Africa is aiming to ensure there is no further capital expenditure for the rest of the year.
At the start of the year, the company had forecast growth in its main Nigerian market as well as targeted exports.
Cement volumes in the first-quarter rose 8% and overall sales of ₦63.7 billion were up 9.8%, El Dokani said, helped by a 2% price rise that had taken effect in December.
Lafarge Africa halts capital expenditure, forecast lower sales
