Lafarge saw shares rise strongly after reporting better-than-expected fourth-quarter earnings on Wednesday morning and announcing that it will reach its cost-cutting goal a year earlier than originally announced.

The world's largest cement maker reported that sales remained stable at €3.809bn, while current operating income grew 12% to €603m. EBITDA (earnings before interest, tax, depreciation and amortisation) rose 7.0% to €865m, compared to the €821.6m consensus estimate.

Chairman and Chief Executive Officer Bruno Lafont said that the earnings were buoyed by growth in emerging markets.

"We are progressing fast and I am convinced that we will deliver most of our 2012-2015 plan to generate €1.75bn additional EBITDA through cost reduction and innovation measures by the end of 2014, close to one year ahead of our initial objective. We target to deliver €650m additional EBITDA from these measures in 2013," he said in the earnings statement.

Furthermore, bucking the trend on Wednesday seen by the likes of German airline Lufthansa or UK insurer RSA that suspended and cut their dividend, respectively, the French company upped its 2012 payout to €1.

Lafarge was leading the risers on the Cac 40, trading up 5.94% to $49.495 in morning trade in Paris.

JM

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