In the Mediterranean Basin, sales were up sharply in Jordan and in Turkey where the market grew strongly. In Morocco, volumes saw good growth, although overall sales prices were negatively affected by the implementation of a cement sales tax in 2004.

In Africa, high levels of growth were seen particularly in Nigeria and in South Africa.

In Latin America, the continued improvement in Venezuela offset lower volumes and prices in Brazil. In Asia, demand was disappointing, with the exception of India and Indonesia where demand was strong. In the Philippines significant price increases were successfully implemented throughout the year but volumes were slightly lower due to low levels of government spending. Similarly, Malaysia suffered from lower public sector spending especially in infrastructure, leading to lower selling prices. In South Korea the construction industry was badly affected by government initiatives to dampen property price inflation, which led to a sharp fall in construction orders. The consequent decline in cement volumes increased competition between domestic producers and importers, leading to price weakness.

AGGREGATES & CONCRETE: +7.6%
Sales rose 7.6% in 2004 (+11.4% in Quarter 1, +6.0% in Quarter 2, +5.9% in Quarter 3 and +8.4% in Quarter 4).

The Aggregates and Concrete Division delivered robust levels of sales growth overall with strong volumes in both North America and France, coupled with favorable pricing trends in most countries.

In Aggregates, sales rose 7.2% with a strong increase in North America.
Volumes rose with solid overall demand levels in the U.S. and strong sales in Canada. Aggregate prices were also higher in most North American markets.
In Western Europe the situation was mixed. In France, sales growth varied regionally, with stronger growth in Southern regions. In the UK, sales were lower due to a decline in infrastructure spending, which strongly affected Asphalt and Paving.
Aggregates prices continued to show favorable trends compared to 2003.

In Concrete, sales grew by 8.3%.
In North America, sales rose 7.3%, with overall positive pricing conditions. Demand was particularly strong in West Canada and in the Eastern part of the United States.
In France, sales grew strongly due to a combination of high levels of residential housing in most regions and favorable pricing trends which supported increased sales of special quality concretes. In the UK, concrete sales were robust with improved pricing trends supported by increased volumes of special quality products.

ROOFING: -1.0%
Sales were down by 1.0% in 2004 (+6.0% in Quarter 1, +6.0% in Quarter 2, –6.2% in Quarter 3 and –7.5% in Quarter 4).

The Roofing Division's decline in sales resulted from renewed weakness in Germany in the second half after a more promising first half.

In Western Europe, sales of both concrete and clay tiles were down. The renewed decline in sales in Germany offset the generally favorable trends seen across the rest of Europe, particularly in France, Italy and Scandinavia.
Sales in the U.S. continued to be strong, driven by a buoyant housing market.

GYPSUM: +12.2%
Sales rose 12.2% in 2004 (+14.2% in Quarter 1, +13.2% in Quarter 2, +10.8% in Quarter 3 and +10.8% in Quarter 4).

The Gypsum Division’s strong sales growth in 2004 was driven by positive trends in both volumes and prices in most markets.

Page 3 of 17 Total Pages

 

In Western Europe, pricing was favorable in France but continued to be negative in Germany. Volumes were driven by strong demand in the UK and by strong fourth quarter sales in Germany ahead of 2005 price increases.

Sales grew significantly in the United States with our plants running at high capacity rates. The strong activity in residential housing and renovation work continued and facilitated further price increases in all of our markets during the year.

In Asia, sales were down due to the decline in the South Korean construction market.

NEGATIVE FOREIGN EXCHANGE IMPACT OF –3.5% AMOUNTING TO €– 442 MILLION
The translation impact of negative foreign currency fluctuations on 2004 sales was generated mostly in the following currencies: US Dollar (€ 231 million), Malaysian Ringgit (€ 33 million), Canadian Dollar (€ 27 million), and the Nigerian Naira (€ 22 million). This was slightly offset by the appreciation of the Pound Sterling (+€ 26 million) and the South African Rand (+€ 16 million).

SCOPE CHANGES OF +1.5% AMOUNTING TO € 214 MILLION
Sales from acquisitions amounted to a positive scope effect of € 392 million, of which € 176 million is due to the increase to 51.17% in our percentage ownership of Lafarge Halla Cement in South Korea, which triggered a change from the proportionate to global consolidation method. Aggregates and Concrete acquisitions contributed € 137 million of which € 70 million was in North America and € 48 million in France.

The reduction in sales due to negative scope effects totaled € 178 million, primarily as a result of the divestment of Florida cement operations (€ 54 million), various divestments from the Aggregates and Concrete Division (€ 70 million ) and the disposal of the remaining lime operations in Europe and road markings in the USA (€ 49 million).

CONSOLIDATED SALES AS AT DECEMBER 31, 2004

			December 31, 2004 € Million			December 31, 2003 € Million			Variation			At constant scope and foreign exchange			At constant scope and foreign exchange, before inter divisional sales elimination
Cement			6,810			6,383			+6.7	%		+9.2	%		+9.2	%
Aggregates & Concrete			4,747			4,465			+6.3	%		+7.6	%		+7.6	%
Roofing			1,493			1,510			–1.1	%		–1.0	%		–1.0	%
Gypsum			1,340			1,194			+12.2	%		+12.0	%		+12.2	%
Others			46			106			–56.6	%		–8.1	%
TOTAL			14,436			13,658			+ 5,7	%		+7.7	%		NA

Lafarge, the world leader in building materials, holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge employs 75,000 people in 75 countries and posted sales of € 14.3 billion in 2004. Additional information is available on the web site at www.lafarge.com.

Lafarge’s next financial publication – 2004 Full Year Results – will be on Thursday 24^th February, 2005 (before the Euronext stock market opens.) The publication of the 2004 Full Year Results will be made in French GAAP together with a publication of the 2004 results restated in IFRS.

For release worldwide with simultaneous release in the United States.

Page 4 of 17 Total Pages

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COMMUNICATIONS:	INVESTOR RELATIONS:
Stéphanie Tessier: 33-1 44-34-92-32 stephanie.tessier@lafarge.com	James Palmer: 33-1 44-34-92-93 james.palmer@lafarge.com
Amanda Jones: 33-1-44-34-19-47 amanda.jones@lafarge.com	Danièle Daouphars: 33-1 44-34-92-93 daniele.daouphars@lafarge.com

Statements made in this press release that are not historical facts, including statements regarding our expected operating income, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors"), which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonal nature of the Company’s operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's public filings with the French Autorité des Marchés Financiers and the US Securities and Exchange Commission including its Reference Document and annual report on Form 20-F. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.

Conference Call on Sales to January 27, 2005 Following the release of Lafarge’s sales to December 31, 2004, a conference call will be held on: January 27, 2005 at 15:30 French time, in English (14:30 UK time; 09:30AM EDT in North America) The speakers will be: Jean-Jacques Gauthier – Executive Vice President, Finance James Palmer – Vice-President Investor Relations Danièle Daouphars – Manager Investor Relations If you wish to participate in the conference call, please dial: From France: +33 (0)1 70 99 35 15 From UK : +44 208 515 2301 From UK toll free (from UK only): 0800 358 0857 From USA: +1 303 262 2211 From USA toll free: 800 219 6110 Conference call name: “Lafarge 2004 Full Year Sales” A replay of the conference call will be available from January 27, 2005 at 7.30 pm French time to February 4, 2005 at 7.30 pm at the following numbers: From France +33(0) 1 70 99 32 94 Access code: 132895# From UK +44 208 515 2499 Access code: 630458# From UK toll free (from UK only): 0 800 026 0020 Access code: 630458# From USA: +1 303 590 3000 Access code: 1121078# From USA toll free: 800 405 2236 Access code: 1121078#

Page 5 of 17 Total Pages

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Consolidated Figures (YTD)

Sales
(Millions of euros)	2004FY		2003FY		04/03
					(current)
By geographical zone of destination
Western Europe	6,020		5,776		4	%
Central and Eastern Europe	746		696		7	%
Emerging Mediterranean	534		530		1	%
North America	3,938		3,840		3	%
Latin America & the Caribbean	579		613		–6	%
Sub Saharan Africa/Indian Ocean/Others	1,190		921		29	%
Asia /Pacific	1,429		1,282		11	%
By business line
Cement	6,810		6,383		7	%
Aggregates & Concrete	4,747		4,465		6	%
Roofing	1,493		1,510		–1	%
Gypsum	1,340		1,194		12	%
Others	46		106		–57	%
Total	14,436		13,658		6	%

Page 6 of 17 Total Pages

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Back to Contents

Cement (YTD)

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidaries)
(millions of tonnes)	2004FY		2003FY		04/03		04/03
					(current)		(like for like)
Western Europe	32.0		30.6		5	%
Central and Eastern Europe	10.1		9.0		12	%
Emerging Mediterranean	9.7		9.9		–2	%
North America	21.0		18.0		17	%
Latin America & the Caribbean	6.0		6.2		–3	%
Sub Saharan Africa/ Indian Ocean/Others	12.4		11.2		11	%
Asia/Pacific	28.2		23.1		22	%
Total (1)	119.4		108.0		11	%	4.1	%
Sales (after elimination of inter divisional sales by destination)
(Millions of euros)	2004FY		2003FY		04/03		04/03
					(current)		(like for like)
Western Europe	2,204		2,099		5	%
Central and Eastern Europe	457		409		12	%
Emerging Mediterranean	430		441		–2	%
North America	1,338		1,345		–1	%
Latin America & the Caribbean	372		416		–11	%
Sub Saharan Africa/Indian ocean/Others	944		766		23	%
Asia/Pacific	1,065		907		17	%
Total consolidated sales	6,810		6,383		7	%	9.2	%
Sales (before elimination of inter divisional sales by origin)
(Millions of euros)	2004FY		2003FY		04/03		04/03
					(current)		(like for like)
Western Europe	2,422		2,351		3	%
Central and Eastern Europe	467		424		10	%
Emerging Mediterranean	430		400		7	%
North America	1,520		1,514		0	%
Latin America & the Caribbean	459		469		–2	%
Sub Saharan Africa/Indian ocean/Others	1,055		894		18	%
Asia/Pacific	1,050		893		18	%
Total before elimination of interdivisional sales	7,403		6,945		7	%	9.2	%

(1) including 2,4 MT special products reported for the first time (thereof 1,5 MT for North America).
In 2003, these figures compare to 1,9 MT thereof 1,3 MT for North America

Page 7 of 17 Total Pages

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Aggregates & Concrete (YTD)

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidiaries)
Aggregates		2004FY		2003FY		04/03		04/03
(millions of tonnes)
						(current)		(like for like)
Western Europe		77.1		74.5		3	%
North America		134.9		120.6		12	%
Other countries		22.2		18.9		17	%
Total		234.2		214.0		9	%	6.7	%
Concrete		2004FY		2003FY		04/03		04/03
(millions of cbm)
						(current)		(like for like)
Western Europe		14.7		14.3		3	%
North America		12.1		10.7		13	%
Other countries		10.2		9.4		9	%
Total		37.0		34.4		8	%	5.7	%
Sales (after elimination of inter divisional sales by destination)
(Millions of euros)		2004FY		2003FY		04/03		04/03
						(current)		(like for like)
Aggregates & related products		2,179		2,050		6	%
Ready-mix concrete & concrete products		2,568		2,415		6	%
Total Aggregates & Concrete		4,747		4,465		6	%	7.6	%
of which	Western Europe	1,958		1,845		6	%
"	North America	2,220		2,130		4	%
"	Other countries	569		490		16	%
Sales (before elimination of inter divisional sales by origin)
(Millions of euros)		2004FY		2003FY		04/03		04/03
						(current)		(like for like)
Total Aggregates & Concrete		4,761		4,483		6	%	7.6	%
Aggregates & related products		2,503		2,351		6	%	7.2	%
of which pure Aggregates	Total	1,854		1,688		10	%
"	Western Europe	863		782		10	%
"	North America	851		793		7	%
"	other countries	140		113		24	%
Ready-mix concrete & concrete products		2,586		2,432		6	%	8.3	%
of which Ready-mix	Total	2,443		2,263		8	%
"	Western Europe	1,105		1,037		7	%
"	North America	884		824		7	%
"	other countries	454		402		13	%
Eliminations intra A&C		–328		–300		9	%

Page 8 of 17 Total Pages

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Roofing (YTD)

Volumes by destination (adjusted for the contributions of our proportionally consolidated subsidiaries)
		2004FY		2003FY		04/03		04/03
						(current)		(like for like)
Concrete roof tiles	(millions of m²)
Western Europe (1)		61.2		64.0		–4	%
North America		22.5		19.9		13	%
Other countries (1)		44.1		44.6		–1	%
Clay roof tiles	(millions of m²)
Western Europe		23.2		24.0		–3	%
Other countries		2.8		1.8		56	%
Chimneys	(kms)	3,137		2,778		13	%
Sales (after elimination of inter-divisional sales by destination)
(Millions of Euros)
		2004FY		2003FY		04/03		04/03
						(current)		(like for like)
Total		1,493		1,510		–1	%	–1.0	%
Western Europe		1,107		1,138		–3	%
	Germany	385		439		–12	%
	Other countries	722		699		3	%
Other countries		386		372		4	%
Sales (before elimination of inter divisional sales by origin)
(Millions of Euros)		2004FY		2003FY		04/03		04/03
						(current)		(like for like)
Total		1,493		1,510		–1	%	–1.0	%
of which concrete roof tiles	Western Europe	522		546		–4	%
"	North America	109		106		3	%
	Other countries	110		112		–2	%
of which clay roof tiles		261		267		–2	%
of which chimneys (2)		189		174		9	%
of which other roofing products		302		305		–1	%

(1) 2003 figures were restated with the correct split of BRAMAC sales.
(2) Including the "other roofing products" of the Chimney business.

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Gypsum (YTD)

Volumes of gypsum wallboard (adjusted for the contributions of our proportionally consolidated subsidiaries)
(millions of m²)	2004FY		2003FY		04/03		04/03
					(current)		(like for like)
Total	675		632		7	%	6.3	%
Sales (after elimination of inter-divisional sales by destination)
(Millions of euros)	2004FY		2003FY		04/03		04/03
					(current)		(like for like)
Total	1,340		1,194		12	%	12.0	%
of which Western Europe	723		657		10	%
of which North America	263		226		16	%
of which other countries	354		311		14	%
Sales (before elimination of inter divisional sales by origin)
(Millions of euros)	2004FY		2003FY		04/03		04/03
					(current)		(like for like)
Total	1,353		1,204		12	%	12.2	%
of which Western Europe	757		689		10	%
of which North America	263		225		17	%
of which other countries	333		290		15	%

 

Page 10 of 17 Total Pages

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Sales December 31^st 2004
Ytd like for like Sales variance analysis by region and in major domestic markets.⁽¹⁾

			Volume effect			Price, product,			Activity variation
						customer & other			vs 2003
						mix effect
CEMENT
Western Europe			–0.2	%		3.0	%		2.8	%
France			7.3	%		1.7	%		9.0	%
United Kingdom			–0.9	%		1.0	%		0.1	%
Spain			1.1	%		1.9	%		3.0	%
Germany			–5.6	%		13.3	%		7.7	%
Greece			–8.3	%		3.9	%		–4.4	%
Central and Eastern Europe			6.9	%		9.6	%		16.5	%
Poland			3.5	%		0.4	%		3.9	%
Romania			7.8	%		21.9	%		29.7	%
Serbia			0.9	%		7.9	%		8.8	%
Russia			4.1	%		15.7	%		19.8	%
Mediterranean Basin			10.5	%		7.8	%		18.3	%
Turkey			12.6	%		26.8	%		39.4	%
Morocco			6.1	%		–7.1	%		–1.0	%
Jordan			20.1	%		5.3	%		25.4	%
Egypt			–7.1	%		35.2	%		28.1	%
North America			9.4	%(2)		1.7	%		11.1	%
Latin America, Caraibs			3.8	%		–1.4	%		2.4	%
Brazil			–6.0	%		–5.5	%		–11.5	%
Venezuela			36.9	%		10.0	%		46.9	%
Chile			5.7	%		0.1	%		5.8	%
Africa, Indian Ocean			13.6	%		15.7	%		29.3	%
Kenya			18.1	%		6.9	%		25.0	%
Nigeria			16.0	%		30.7	%		46.7	%
South Africa			18.1	%		11.6	%		29.7	%
Asia, Middle East			2.4	%		5.0	%		7.4	%
Indonesia			3.0	%		4.7	%		7.7	%
Malaysia			–5.8	%		–0.9	%		–6.7	%
Philippines			–1.6	%		31.7	%		30.1	%
India			18.7	%		5.7	%		24.4	%
South Korea			–13.7	%		–0.5	%		–14.2	%
Total CEMENT			4.1	%		5.1	%		9.2	%
AGGREGATES and related activities
France (pure Aggregates)			3.8	%		3.4	%		7.2	%
United Kingdom (pure Aggregates)			–4.7	%		2.2	%		–2.5	%
North America (pure Aggregates)			10.8	%		2.8	%		13.6	%
Pure aggregates			6.7	%		2	%(3)		8.7	%
Total AGGREGATES and related activities									7.2	%
CONCRETE and related activities
France (readymix)			8.1	%		3.3	%		11.4	%
United Kingdom (readymix)			3.7	%		2.5	%		6.2	%
North America (readymix)			4.9	%		2.4	%		7.3	%
Total Readymix			5.7	%		2.8	%		8.5	%
Total Concrete and related activities									8.3	%

(1)	Before elimination of sales between Divisions
(2)	+8% for cement products only
(3)	of which price effects at constant country mix +2.85%

Page 11 of 17 Total Pages

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Sales December 31^st 2004
Ytd like for like Sales variance analysis by region and in major domestic markets.⁽¹⁾

			Price, product,
	Volume effect		customer & other		Activity variation
			mix effect		vs 2003
ROOFING
Western Europe Concrete T&F	–4.5	%	–0.1	%	–4.6	%
Western Europe Clay T&F	–0.7	%	–1.7	%	–2.4	%
UK	–0.7	%	0.2	%	–0.5	%
Concrete	–1.8	%	–0.3	%	–2.1	%
Clay	4.6	%	0.2	%	4.8	%
France	2.0	%	3.9	%	5.9	%
Concrete	1.6	%	2.0	%	3.6	%
Clay	2.7	%	4.2	%	6.9	%
Germany	–8.6	%	–4.0	%	–12.6	%
Concrete	–13.1	%	–1.3	%	–14.4	%
Clay	–6.1	%	–6.3	%	–12.4	%
United States (Concrete)	13.3	%	–0.7	%	12.6	%
Chimneys	4.8	%	0.8	%	5.6	%
Accessories					–1.1	%
Total ROOFING					–1.0	%
GYPSUM
BOARDS
Western Europe	9.3	%	–0.2	%(4)	9.1	%
North America	4.5	%	23.8	%	28.3	%
Asia, Pacific	2.7	%	–5.1	%	–2.4	%
Total GYPSUM					12.2	%

(1)	Before elimination of sales between Divisions
(4)	of which price effects at constant country mix +1.8%

Page 12 of 17 Total Pages

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BCI total contribution (YTD)

Sales
(Millions of euros)	2004FY		2003FY		04/03
					(current)
By geographical zone of destination
Western Europe	998		1,018		–2	%
North America	745		669		11	%
Central and Eastern Europe	4		11		–64	%
Emerging Mediterranean	24		27		–11	%
Asia/Pacific	432		465		–7	%
Latin America & the Caribbean	207		184		13	%
Sub Saharan Africa/Indian Ocean/Others	312		240		30	%
By business line
Cement	2,090		2,033		3	%
Aggregates & Concrete	617		554		11	%
Others	15		27		–44	%
Total	2,722		2,614		4	%

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BCI contribution Cement (YTD)

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidaries)
(millions of tonnes)	2004FY		2003FY		04/03
					(current)
Western Europe	12.3		12.7		–3	%
North America	7.0		5.2		35	%
Central and Eastern Europe	0.1		0.4		–75	%
Emerging Mediterranean	0.7		1		–30	%
Asia/Pacific	9.4		9.7		–3	%
Latin America & the Caribbean	1.4		1.3		8	%
Sub Saharan Africa/ Indian Ocean	3.9		3.6		8	%
Total (1)	34.8		33.9		3	%
Sales (after elimination of inter divisional sales by destination)
(millions of euros)	2004FY		2003FY		04/03
					(current)
Western Europe	925		935		–1	%
North America	390		374		4	%
Central and Eastern Europe	4		11		–64	%
Emerging Mediterranean	24		27		–11	%
Asia/Pacific	346		379		–9	%
Latin America & the Caribbean	89		67		33	%
Sub Saharan Africa/Indian ocean/Others	312		240		30	%
Total consolidated sales	2,090		2,033		3	%

(1) including 1,0 MT special products reported for the first time (thereof 0,9 MT for North America).

Page 14 of 17 Total Pages

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BCI contribution Aggregates & Concrete (YTD)

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidiaries)
Aggregates		2004FY		2003FY		04/03
(millions of tonnes)
						(current)
Western Europe		0.3		0.2		50	%
North America		12.3		11.4		8	%
Other countries		3.9		3.1		25	%
Total		16.5		14.7		12	%
Concrete		2004FY		2003FY		04/03
(millions of cbm)
						(current)
Western Europe		1.2		1.4		–14	%
North America		3.5		2.4		46	%
Other countries		5.0		4.9		2	%
Total		9.7		8.7		11	%
Sales (after elimination of inter divisional sales by destination)
(Millions of euros)		2004FY		2003FY		04/03
						(current)
Aggregates & related products		70		66		6	%
Ready-mix concrete & concrete products		547		488		12	%
Total Aggregates & Concrete		617		554		11	%
of which	Western Europe	68		71		–4	%
"	North America	355		295		20	%
"	Other countries	194		188		3	%

Page 15 of 17 Total Pages

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BCI contribution Others (YTD)

Sales (after elimination of inter divisional sales)
		2004FY		2003FY		04/03
(Millions of euros)
						(current)
Others		15		27		–44	%

Page 16 of 17 Total Pages

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date January 27, 2005	Lafarge
	(Registrant)
	By:		/s/ Jean-Pierre Cloiseau
	Name:		Jean-Pierre Cloiseau
	Title:		Senior Vice President, Finance

Page 17 of 17 Total Pages

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