In Central and Eastern Europe operating income on ordinary activities grew by 4.7% to 90 million euros compared to 86 million euros in 2002. The negative impact of currency fluctuations and of changes in the scope of consolidation on the region's operating income on ordinary activities amounted respectively to 11 and 6 million euros. Operating income on ordinary activities at constant scope and exchange rates grew by 28%, with strong margin improvement in Romania and to a lesser extent in Russia, Serbia and Slovenia. In Poland,where we opened a new production line at the Kujawy plant in summer 2003, the adverse volume and price effects were entirely offset by reductions in manufacturing costs. In the Czech Republic operating income on ordinary activities was unfavorably affected by the decline in volumes and deterioration in prices which occurred both on the domestic market and in Germany, the main export market.

In the Mediterranean Basin, operating income on ordinary activities increased by 8.0% to 121 million euros compared to 112 million euros in 2002. The negative impact of currency fluctuations and of changes in the scope of consolidation on the region's operating income on ordinary activities amounted respectively to 14 and 4 million euros. Operating income on ordinary activities at constant scope and exchange rates grew by 29% with well oriented markets in Jordan and in Morocco. In Egypt and in Turkey operating income on ordinary activities was favorably affected by a progressive improvement in prices.

In Latin America, operating income on ordinary activities declined by 18.8% from 202 million euros in 2002 to 164 million euros in 2003. The negative impact of currency fluctuations and of changes in the scope of consolidation on the region's operating income on ordinary activities amounted respectively to 45 and 4 million euros. At constant scope and exchange rates, operating income on ordinary activities grew by 7% with improved margins in Brazil despite slower demand. In Venezuela, the local turmoil and bolivar devaluation resulted in operating income on ordinary activities being down by 42%. In Honduras, a weak local market and unfavorable foreign exchange impact resulted in operating income on ordinary activities declining by 35%. A decline was recorded in Chile as the result of the negative foreign exchange impact. In Mexico, operating income on ordinary activities remained stable compared to 2002.

In Africa and the Indian Ocean, operating income on ordinary activities increased by 12.5% from 120 million euros in 2002 to 135 million euros in 2003. The negative impact of currency fluctuations and changes in the scope of consolidation on the region's operating income on ordinary activities amounted respectively to 9 and 1 million euros. At constant scope of consolidation and exchange rates, operating income on ordinary activities grew by 23% with improvements particularly noticeable in Nigeria and South Africa. In Nigeria where the new Ewekoro plant started in the second part of the year we benefited from favorable pricing conditions, but our operations were penalized by a general strike and the poor performance of the Sagamu plant. In South Africa the strengthening of the rand and increased margins have resulted in operating income on ordinary activities being up by 39%. Operating income on ordinary activities in Kenya was down primarily as a result of the negative currency fluctuation. Cameroon increased its operating income on ordinary activities.

In Asia, operating income on ordinary activities increased by 3.0% from 100 million euros in 2002 to 103 million euros in 2003. The negative impact of currency fluctuations on the region's operating income on ordinary activities amounted to 18 million euros. The positive impact of changes in the scope of consolidation amounted to 4 million euros. At constant scope of consolidation and exchange rates, operating income on ordinary activities increased by 21% with strong growth in Malaysia, South Korea and Indonesia. Operating income on ordinary activities benefited from significant volume growth in Malaysia, from favorable market conditions in South Korea, improved margins in Indonesia and plant performance improvements with improved kiln reliability in Indonesia and the Philippines in particular.

Page 8 of 30 Total Pages

The small loss incurred in Indonesia in 2002 was reversed to record an operating profit. In India, improved industrial performance had a positive effect on margins, but operating income on ordinary activities was adversely affected by higher local taxes , while the impact of the fall in volumes was entirely compensated by improved pricing. Despite plant performance improvements, operating income on ordinary activities in the Philippines was weak due to deteriorated pricing. In China operating income on ordinary activities benefited from the favorable effect of changes in the scope of consolidation with the full year operation of the Dujiangyan plant and the acquisition in 2003 of the Chongqing plant.

AGGREGATES & CONCRETE: 15% of total operating income on ordinary activities

€ million			Dec 31, 2003			Dec 31, 2002			% variance			Excluding foreign exchange, and scope effects			Excluding foreign exchange, scope effects and before inter divisional sales elimination
Sales			4,465			4,768			- 6.3	%		+ 3.8	%		+ 3.8	%
Operating income on ordinary activities			283			336			- 15.8	%		- 9.3	%

•	Aggregates – Operating income on ordinary activities : €191 million (€246 million in 2002)

•	Concrete – Operating income on ordinary activities : €92 million (€90 million in 2002)

Sales rose by 3.8% excluding foreign exchange, scope effects, and before inter divisional sales elimination for the full year 2003 (-0.6% in Quarter 1, +3.3% in Quarter 2, +6.5% in Quarter 3 and +4.1% in Quarter 4). Aggregates volumes at current scope rose by 3% to 214 million tonnes in 2003. Concrete volumes at current scope were down by 3% to 34 million cubic meters.

Operating income on ordinary activities of the Aggregates & Concrete division declined by 15.8 % between 2002 and 2003, from 336 million euros to 283 million euros. Currency fluctuations had a negative impact of 7% or 27 million euros. The net effect of changes in the scope of consolidation, primarily resulting from divestments in North America and from the withdrawal from Germany, amounted to 3 million euros. At constant scope of consolidation and exchange rates, operating income on ordinary activities declined by 9%. As a percentage of the division’s gross sales, operating income on ordinary activities represented 6.3% in 2003, compared to 7.0% in 2002. Operating income on ordinary activities for aggregates totaled 191 million euros down 22.4% from 246 million euros in 2002. Currency fluctuations had a negative impact of 8% being 23 million euros. Operating income on ordinary activities for Concrete totaled 92 million euros, up 2.2% from 90 million euros in 2002. Currency fluctuations had a negative impact of 4 million euros.

Western Europe :

Sales in Western Europe rose at constant scope and exchange rate, driven by the United Kingdom and Spain. In the United Kingdom, sales growth came from good pricing in aggregates and from the asphalt and paving activities, which benefited from major contracts in progress, although there was a modest slowdown in the fourth quarter. Concrete sales in the United Kingdom also showed a good level of growth throughout the year.

Page 9 of 30 Total Pages

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Spain continues to have record sales. In France, the overall aggregates and concrete market declined in 2003 with the exception of the South East.

Operating income on ordinary activities dropped by 10.1% to 133 million euros with the decline occurring essentially in France where operating income on ordinary activities was impacted by the weaker market and an increase in production costs. In the United Kingdom operating income on ordinary activities was down as a result of the negative currency fluctuation, otherwise operating income on ordinary activities grew as operating margins improved in the concrete activities.

North America:

Sales : In North America, aggregates and concrete sales ended the year higher than 2002 at constant scope and exchange rate as a result of strong volumes in the fourth quarter, which offset the impact of poor weather conditions in the early part of the year and slower construction activity in the United States. Price increases in aggregates and concrete were achieved across Canada and in most markets in the United States.

Operating income on ordinary activities was down by 29.2% to 126 million euros. The impact on operating income on ordinary activities of the weakening of the dollar against the euro amounted to 24 million euros or 11%. The net effect of changes in the scope of consolidation on operating income on ordinary activities was 2 million euros. The increase in pension costs, which totaled 15 million euros, contributed to the decline in operating income on ordinary activities. The remainder of the decline in operating income on ordinary activities resulted in particular from weak business conditions during the first half of the year as well as the exit cost of our highway paving in New Mexico. All regions, with the exception of the Western United States, saw a significant improvement in the last quarter.

Elsewhere in the world :

Operating income on ordinary activities continued to improve to 24 million euros in 2003 versus to 10 million euros in 2002. In South Africa, operating income on ordinary activities continued to grow strongly due to the combined effect of improved performance and of the rand’s appreciation against the euro. In Turkey, the operating loss was reduced, with margins favorably affected by continued improvements in performance.

ROOFING: 7% of total operating income on ordinary activities

€ million			Dec 31, 2003			Dec 31, 2002			% variance			Excluding foreign exchange, and scope effects			Excluding foreign exchange, scope effects and before inter divisional sales elimination
Sales			1,510			1,538			- 1.8	%		+ 3.0	%		+ 3.0	%
Operating income on ordinary activities			142			132			+ 7.6	%		+14.4	%

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Sales increased by 3.0% excluding foreign exchange, scope effects, and before inter divisional sales elimination for the full year 2003 (-3.2% in Quarter 1, -0.6% in Quarter 2, +5.5% in Quarter 3 and +9.1% in Quarter 4.)

Operating income on ordinary activities was up 7.6% to 142 million euros from 132 million euros in 2002 as a result of cost management efforts and extensive restructuring carried out across the operations, particularly in Germany. Currency fluctuations had a negative impact of 6 million euros. As a percentage of the division’s gross sales, operating income on ordinary activities represented 9.4% in 2003, compared to 8.6% in 2002.

Western Europe:

Sales in Western Europe were marginally down for the full year for concrete tiles, but rose for clay tiles. The fourth quarter saw strong sales in most countries for both concrete and clay tiles. Good levels of sales growth were recorded in the United Kingdom, Italy, the Czech Republic and Hungary for all products. France experienced a decline in sales of concrete tiles. In Germany concrete tile sales were down for the year, with the weak start at the beginning of the year being partially offset by favorable trends in the second half.

Sales of roofing components increased by 3.9% now representing 17% of the Division’s sales. Chimney sales rose by 6%.

Operating income on ordinary activities in Western Europe rose by 1.9% to 105 million euros. In Germany, following extensive restructuring, operating income on ordinary activities increased by 33.3% from 33 million euros to 44 million euros despite a persistent weak market. In other Western European countries operating income on ordinary activities declined from 70 million euros in 2002 to 61 million euros in 2003. In the United Kingdom operating income on ordinary activities benefited from a strong sales development. However this was more than offset by the impact of unfavorable market trends in France and in the Netherlands. In addition, higher pressure on prices in Austria and Benelux hampered improvements in margins.

North America and other countries:

Sales in the United States continued to grow at constant scope and exchange rate driven by a strong housing market. In Asia strong sales were recorded in Malaysia and a positive improvement was achieved in Japan.

Operating income on ordinary activities outside Western Europe, increased to 37 million euros in 2003 from 29 million euros in 2002. Major contributors were Central and Eastern Europe, in particular the Czech Republic, and North America.

GYPSUM: 4% of total operating income on ordinary activities

€ million

Dec 31, 2003

Dec 31, 2002

% variance

Excluding foreign exchange, and scope effects

Excluding foreign exchange, scope effects and before inter divisional sales elimination

Sales

1,194

1,146

+ 4.2%

+ 6.4%

+ 6.6%

Operating income on ordinary activities

84

51

+ 64.7%

+ 55.8%

Page 11 of 30 Total Pages

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Sales rose by 6.6% excluding foreign exchange, scope effects, and before inter divisional sales elimination for the full year 2003 (+1.9% in Quarter 1, +1.6% in Quarter 2, +9.5% in Quarter 3 and +14.1% in Quarter 4.)

Operating income on ordinary activities grew by 64.7% from 51 million in 2002 to 84 million in 2003. This remarkable growth follows the significant improvement achieved in 2002, after the very difficult year in 2001. Currency fluctuations had no impact on our operating income on ordinary activity. The positive scope effect resulting from the acquisition of Gyproc in Germany amounted to 3 million euros. At constant scope, operating income on ordinary activities increased by 56%. This was primarily due to the reduction of losses in North America, helped by better pricing and a better operational performance from our factories. As a percentage of the division’s gross sales, operating income on ordinary activities represented 7.0 % in 2003, compared to 4.4% in 2002.

Western Europe:

Sales : In Western Europe, strong sales growth was recorded in the United Kingdom which had a very buoyant wallboard market throughout the year. Good growth was seen in France and an improvement in Germany despite a declining market.

Operating income on ordinary activities in Western Europe improved by 11.9% to 66 million euros up from 59 millions in 2002. At constant scope of consolidation and exchange rates, operating income on ordinary activities increased by 7%. Benefiting from better volumes and improved industrial performances, operating income on ordinary activities in France improved despite an increase in energy costs, while, in the United Kingdom, operating income on ordinary activities recorded a noticeable increase due to the buoyant market and better performance. In Germany, we benefited from the action plan launched in 2002 together with the acquisition of Gyproc. Operating losses were reduced despite difficult market conditions.

North America:

Sales : In the United States, the strong end of the year confirmed the recovery seen in the third quarter with good demand from residential construction. Prices reached 105 U.S. dollars per thousand square feet (1,000 square feet is roughly 93 square meters) in December, the highest level since 2000 although annual average prices were only up to 97 U.S. dollars per thousand square feet compared to 96 U.S. dollars in 2002.

Operating income on ordinary activities : A combination of manufacturing performance improvements, the idling of the Wilmington plant and price increases reduced the operating loss in 2003 to 14 million euros, compared to a loss of 28 million euros in 2002. With improved plant performance we were able to supply the increased demand for wallboard, despite having idled the Wilmington plant. Prices recovered, by the end of the year, to levels not seen since 2000, but this favorable effect was partly offset by higher natural gas prices and fuel costs. The two high speed plants at Silver Grove and Palatka performed well, allowing a significant decrease in operating costs.

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Other countries:

Operating income on ordinary activities rose to 32 million euros in 2003, compared to 20 million euros in 2002. Most of this improvement was attributable to Poland, which benefited from the combined effects of increased volumes following the Gyproc acquisition, the recovery of prices and lower selling and administrative expenses. After a few months of ramp-up and after the closure of the old Gacki plant, the new Gacki plant performed well. Our operating income on ordinary activities in the Asia Pacific region increased slightly with increased volumes and improved profitability in most countries offset by currency fluctuations.

Other (including Specialty products and holdings).

Operating income on ordinary activities of our other operations decreased by 48 million euros between 2002 and 2003, from a profit of 7 million euros to a loss of 41 million euros. In the United Kingdom our holdings were adversely affected by an increase in pension costs of 62 million euros.

OTHER INCOME STATEMENT ITEMS

Non-recurring items: €122 million (€-309 million in 2002)

Gains on disposals, net represented a net gain of 299 million euros in 2003, compared to 216 million euros in 2002. The most significant capital gains were earned on:

•

The sale of certain cement assets in North America which generated capital gains of 111 million euros;

•

The sale of our stake in Materis Participations which generated capital gains of 122 million euros;

Other income (expenses), net, represented a net loss of 177 million euros in 2003, compared to a net loss of 525 million euros in 2002. The most significant expense items were the costs relating to exceptional amortization of 35 million euros and to restructuring charges of 65 million euros split between Roofing at 29 million euros, Cement at 24 million euros, Aggregates and Concrete at 11 million euros and Gypsum at 1 million euros. In 2002, Other income (expenses), net, included a provision of 300 million euros recorded to cover the risks related to the European Commission decision against our Gypsum activities in Europe, and to the German competition authority (Bundeskartellamt) decision to fine our subsidiary Lafarge Zement for its Cement activities in Germany, both of which Lafarge has appealed against.

Net interest expenses: €568 million (€521 million in 2002)

Financial expenses, net, increased by 9.0% between 2002 and 2003, from 521 million euros to 568 million euros. Financial expenses, net, is comprised of financial expenses on net indebtedness and other financial income and expenses including in particular foreign exchange gains and losses. Financial expenses on net indebtedness decreased by 12% between 2002 and 2003, from 577 million euros to 505 million euros as the result of the significant decrease in our net indebtedness. The average interest rate on our debt was 5.8% on December 31, 2003 as compared to 5.2% on December 31, 2002.

Page 13 of 30 Total Pages

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Other financial income and expenses were a net loss in 2003 of 63 million euros compared to a net gain of 56 million euros in 2002. In 2003 we were adversely affected by a 75 million euros foreign exchange loss, while in 2002 we benefited from a foreign exchange gain of 66 million euros.

Income tax: €425 million (€448 million in 2002)

Income tax decreased by 5.1% between 2002 and 2003, from 448 million euros to 425 million euros. The effective tax rate for 2003 of 28.6% decreased by 5.8 points compared to the effective tax rate for 2002 of 34.4%. This is mainly due to the exceptional provision of 300 million euros that was recorded in 2002 (in connection with the competition law issues discussed above) and which is not tax deductible.

Income from equity affiliates: €37 million (€33 million in 2002)

Share of net income in equity affiliates grew by 12.1% between 2002 and 2003, from 33 million euros to 37 million euros. The share of net income in equity affiliates in our Cement division amounted to 42 million euros, of which Molins accounted for 27 million euros. The share of net income in equity affiliates in our Roofing and Gypsum divisions amounted to 20 million euros. The share of the net loss of Carmeuse North America amounted to 33 million euros.

Amortization of goodwill: €135 million (€158 million in 2002).

Amortization of goodwill declined by 14.6% between 2002 and 2003, from 158 million euros to 135 million euros. This decrease primarily reflects the impact of currency fluctuations.

Minority interests: €237 million (€273 million in 2002).

Minority interests decreased by 13.2% between 2002 and 2003, from 273 million euros to 237 million euros, reflecting primarily the negative impact of currency fluctuations on our reported results.

Net income, Group share: €728 million (€456 million in 2002)

Net Income increased by 59.6% between 2002 and 2003, from 456 million euros to 728 million euros, reflecting primarily the impact of the 2002 exceptional provision of 300 million euros. Net income represented 5.3% of sales in 2003, compared to 3.1% in 2002

Earnings per share: €4.92 (€3.52 in 2002)

Earnings per share were up 39.8% at 4.92 euros compared to 3.52 euros in 2002. The average number of shares outstanding during the year was 147.9 million, as compared to 129.6 million in 2002.

Page 14 of 30 Total Pages

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CASHFLOW STATEMENT

Net cash provided by operating activities increased by 298 million euros in 2003 to 2,089 million (€1,791 million in 2002).

The increase is mainly due to a decrease in working capital requirements between December 31, 2002 and December 31, 2003. In this area we have launched specific actions to optimize our resources.

Net cash used in investing activities amounted to €673 million (€774 million in 2002)

Capital expenditure and Investments totaled €1,184 million (€1,513 million in 2002) in line with the target of €1.2 billion set earlier in the year.

Sustaining capital expenditure was controlled strictly with the ongoing upgrading of existing industrial operations around the world, limited to €536 million (€704 million in 2002).

Capital expenditures for new capacity totaled €213 million (€380 million in 2002), of which the most significant were cement projects such as the new line at Ewekoro in Nigeria and our greenfield plant at Tetouan in Morocco. The construction of the new plant in Mexico is now well underway, but limited expenditure was incurred in 2003.

Acquisitions totaling €435 million (€429 million in 2002), of which the most significant were the Cement Division's acquisition of the EBRD's stake in Lafarge Polska for 84 million euros, of Molins' 2.64% stake in Cimpor for 72 million euros and of Chongqing in China for 60 million euros. The Gypsum division acquired Gyproc in Germany early in the year for 42 million euros.

Disposals of €603 million (€725 million in 2002) were made during 2003, thus being at the top end of the Group's commitment to realize divestments in 2003 in the range of 400 to 600 million euros. The most significant disposals included the Group's 33.36% stake in Materis for 190 million euros, cement operations in the United States for 142 million euros, Lafarge Halla's 25% stake in Tong Yang, South Korea for 49 million euros and various aggregates and concrete operations in North America for 36 million euros.

BALANCE SHEET STATEMENT

Total equity as at December 31, 2003 stood at €10,494 million (€9,270 million end of Dec 2002).

The increase from December 31, 2002, reflects in particular the impact of the rights issue made in July 2003. This rights issue raised 1,262 million euros net of issuance expenses and resulted in the creation of 31,831,528 new shares. The income generated in the year also contributed significantly to the increase in total equity which was partially offset by dividends paid and the translation losses due to the continuing of the strengthening of the euro during 2003.

Page 15 of 30 Total Pages

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Net consolidated debt totaled 7,061 million euros down 3,155 million euros from 10,216 million euros at the end of December 31, 2002. Excluding the proceeds from the rights issue and the impact of currency fluctuations, the Group achieved a 1.2 billion euros reduction in net debt well in excess of its objective of 1 billion euros. The gearing ratio at year end was reduced from 110% in 2002 to 67% in 2003 and the ratio of cash flow from operations to net debt improved from 19.1% in 2002 to 25.5% in 2003.

OUTLOOK

Looking forward, we do not expect to see any major turn-around in our markets in 2004 compared to the average for 2003, except for the progressive return to normality of cement prices in Germany and in the Philippines. In Western Europe we believe that our major markets will remain broadly stable in 2004 compared to 2003, with the exception of Greece, where the demand can be expected to decrease following the completion of the projects for the Olympic Games. In North America we do not expect a boom year for construction in 2004 and in the United States in particular we believe construction activity should achieve only marginal growth as residential construction starts to cool down. In 2004, we expect to see growth in emerging markets and more specifically from Asia, Central Europe and Africa. In terms of pricing, we expect a recovery in the cement markets in Germany and in the Philippines and generally well oriented pricing conditions in our other markets.

With respect to our industrial performance, we believe we have improved our planning cycle and have the appropriate tools and organization to share our knowledge and experience better throughout our entire operation. We expect this to help us deliver continuous performance improvements and thus to mitigate the impact of the energy cost increases we expect to see in 2004 through reduced energy consumption and improvements in the fuel source mix.

As far as pension costs are concerned, we expect another increase in our expense of approximately 25 million euros in 2004.

We intend to pursue the strengthening of our financial structure in the future, through our capacity to generate strong cash flows and our ongoing focus on working capital management associated with a strict monitoring of sustaining capital expenditures and further selective divestments.

We also intend to pursue our development strategy through small and medium size growth projects with attractive returns, primarily in Cement worldwide and in Aggregates in Europe and North America.

Statements made in this press release that are not historical facts 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 number D03-0375 as updated on June 5, 2003 and November 17, 2003 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.

Page 16 of 30 Total Pages

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CONSOLIDATED STATEMENTS OF INCOME
(in million euros, except per share data)	Dec - 03		Dec - 02
SALES	13,658		14,610
Cost of goods sold	(9,088	)	(9,734	)
Selling and administrative expenses	(1,750	)	(1,775	)
GROSS OPERATING INCOME	2,820		3,101
Depreciation	(886	)	(969	)
OPERATING INCOME ON ORDINARY ACTIVITIES	1,934		2,132
Gains on disposals, net	299		216
Other income (expenses), net	(177	)	(525	)
OPERATING INCOME	2,056		1,823
Financial expenses, net	(568	)	(521	)
INCOME BEFORE INCOME TAX, SHARE OF NET INCOME OF EQUITY AFFILIATES AMORTIZATION OF GOODWILL AND MINORITY INTERESTS	1,488		1,302
Income tax	(425	)	(448	)
INCOME BEFORE SHARE OF NET INCOME OF EQUITY AFFILIATES AMORTIZATION OF GOODWILL AND MINORITY INTERESTS	1,063		854
Share of net income of equity affiliates	37		33
Amortization of goodwill	(135	)	(158	)
Minority interests	(237	)	(273	)
NET INCOME	728		456
EARNINGS PER SHARE ( EUROS)	4.92		3.52
DILUTED EARNINGS PER SHARE (EUROS)	4.77		3.49
Average number of outstanding shares (in thousands)	147,949		129,629

Page 17 of 30 Total Pages

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CONSOLIDATED BALANCE SHEETS
(in million euros)	Dec - 03		Dec - 02
Goodwill, net	4,149		4,633
Intangible assets, net	2,823		2,835
Property, plant and equipment, net	10,402		11,667
Investments in equity affiliates	383		652
Other investments	481		462
Long term receivables	810		919
Long term assets	19,048		21,168
Inventories, net	1,422		1,591
Accounts receivable-trade, net	1,754		1,816
Other receivables	977		955
Cash and cash equivalents	1,634		1,109
Current assets	5,787		5,471
TOTAL ASSETS	24,835		26,639
Common stock	669		532
Additional paid-in capital	5,798		4,546
Retained earnings	4,053		3,548
Cumulative translation adjustments	(2,335	)	(1,645	)
SHAREHOLDERS' EQUITY	8,185		6,981
Minority interests	2,191		2,155
Other equity	118		134
TOTAL EQUITY	10,494		9,270
DEFERRED TAXES	870		979
PROVISIONS	1,857		1,922
LONG-TERM DEBT	7,370		10,271
Accounts payable, trade	1,234		1,205
Other payables	1,685		1,938
Current portion of long-term debt	985		524
Short-term bank borrowings	340		530
CURRENT LIABILITIES	4,244		4,197
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	24,835		26,639

Page 18 of 30 Total Pages

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CONSOLIDATED STATEMENTS OF CASH FLOWS
(in million euros)	Dec - 03		Dec - 02
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Income	728		456
Adjustments to reconcile net income to net cash provided by operating activities
Minority interests	237		273
Depreciation and amortization of goodwill	1,021		1,127
Share of net income of equity affiliates less dividend received	(11	)	(17	)
Gains on disposals, net (excluding those of equity affiliates)	(299	)	(216	)
Deferred income taxes and tax provisions	15		92
Others, net	108		241
Changes in operating working capital items	290		(165	)
Net cash provided by operating activities	2,089		1,791
NET CASH USED IN INVESTING ACTIVITIES
Capital expenditures	(864	)	(1,149	)
Investment in consolidated companies (1)	(218	)	(337	)
Investment in non consolidated companies	(102	)	(27	)
Disposals (2)	603		725
Net (increase) decrease in long-term receivables	(92	)	14
Net cash used in investing activities	(673	)	(774	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
Proceeds from issuance of common stock	1,438		260
(Increase) decrease in treasury stock	0		(4	)
Increase (decrease) in other equity	0		0
Dividends paid (including those paid to minority interests in subsidiaries)	(395	)	(388	)
Proceeds from long-term debt	173		642
Repayment of long-term debt	(2,042	)	(751	)
Increase (decrease) in short-term debt	(40	)	(685	)
Net cash (used in) provided by financing activities	(866	)	(926	)
(Decrease) Increase in cash and cash equivalents	550		91
Net effect of foreign currency translation on cash and cash equivalents	(105	)	(183	)
Reclassification of self-owned shares	80		0
Cash and cash equivalents at beginning of year	1,109		1,201
Cash and cash equivalents at end of year	1,634		1,109
(1) Net of cash and cash equivalents of companies acquired	25		0
(2) Net of cash and cash equivalents of companies disposed of	4		1

Page 19 of 30 Total Pages

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Consolidated Figures
Sales
(Millions of euros)	2003FY		2002FY		03/02
By geographical zone of destination
Western Europe	5,776		6,005		-4	%
Central and Eastern Europe	696		661		5	%
Emerging Mediterranean	530		562		-6	%
North America	3,840		4,405		-13	%
Latin America & the Caribbean	613		720		-15	%
Sub Saharan Africa/Indian Ocean	921		869		6	%
Asia /Pacific	1,282		1,388		-8	%
By business line
Cement	6,383		6,948		-8	%
Aggregates & Concrete	4,465		4,768		-6	%
Roofing	1,510		1,538		-2	%
Gypsum	1,194		1,146		4	%
Others	106		210		-50	%
Total	13,658		14,610		-7	%

Operating income on ordinary activities
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	875		980		-11	%
North America	363		479		-24	%
Central and Eastern Europe	107		86		24	%
Emerging Mediterranean	125		111		13	%
Asia/Pacific	139		138		1	%
Latin America & the Caribbean	171		205		-17	%
Sub Saharan Africa/Indian Ocean/Others	154		133		16	%
By business line
Cement	1,466		1,606		-9	%
Aggregates & Concrete	283		336		-16	%
Roofing	142		132		8	%
Gypsum	84		51		65	%
Others	-41		7
Total	1,934		2,132		-9	%

Page 20 of 30 Total Pages

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Cement
Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidaries)
(millions of tonnes)	2003FY		2002FY		03/02
Western Europe	30.6		32.8		-7	%
Central and Eastern Europe	9.0		8.1		11	%
Emerging Mediterranean	9.9		9.5		4	%
North America	18.0		17.5		3	%
Latin America & the Caribbean	6.2		6.5		-5	%
Sub Saharan Africa/ Indian Ocean	11.2		10.2		10	%
Asia/Pacific	23.1		21.1		9	%
Total	108.0		105.7		2	%

Sales after elimination of inter divisional sales by geographical zone of destination
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	2,099		2,274		-8	%
Central and Eastern Europe	409		401		2	%
Emerging Mediterranean	441		455		-3	%
North America	1,345		1,579		-15	%
Latin America & the Caribbean	416		502		-17	%
Sub Saharan Africa/Indian ocean	766		756		1	%
Asia/Pacific	907		981		-8	%
Total consolidated sales	6,383		6,948		-8	%

Sales before elimination of inter divisional sales by origin
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	2,351		2,492		-6	%
Central and Eastern Europe	424		413		3	%
Emerging Mediterranean	400		443		-10	%
North America	1,514		1,770		-14	%
Latin America & the Caribbean	469		553		-15	%
Sub Saharan Africa/Indian ocean/others	894		869		3	%
Asia/Pacific	893		980		-9	%
Total before elimination of inter-divisional sales	6,945		7,520		-8	%

Operating income on ordinary activities
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	606		656		-8	%
North America	247		330		-25	%
Central and Eastern Europe	90		86		5	%
Emerging Mediterranean	121		112		8	%
Asia/Pacific	103		100		3	%
Latin America & the Caribbean	164		202		-19	%
Sub Saharan Africa/Indian ocean/Others	135		120		13	%
Total	1,466		1,606		-9	%

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Aggregates & Concrete
Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidiaries)
Pure aggregates before elimination with asphalt & Paving
(millions of tonnes)	2003FY		2002FY		03/02
Western Europe	74.5		71.7		4	%
North America	120.6		117.9		2	%
Other countries	18.9		17.3		9	%
Total	214		206.9		3	%
Concrete
(millions of cbm)	2003FY		2002FY		03/02
Western Europe	14.3		14.8		-3	%
North America	10.7		10.7		0	%
Other countries	9.4		9.9		-5	%
Total	34.4		35.4		-3	%

Sales after elimination of inter divisional sales by geographical zone of destination
(Millions of euros)		2003FY		2002FY		03/02
Aggregates & related products		2,050		2,196		-7	%
Ready-mix concrete & concrete products		2,415		2,572		-6	%
Total Aggregates & Concrete		4,465		4,768		-6	%
of which	Western Europe	1,845		1,856		-1	%
"	North America	2,130		2,405		-11	%
"	Other countries	490		507		-3	%

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Sales before elimination of inter divisional sales by origin
(Millions of euros)		2003FY		2002FY		03/02
Aggregates & related products		2,066		2,213		-7	%
Ready-mix concrete & concrete products		2,417		2,574		-6	%
Total Aggregates & Concrete (bef elim of inter-comp. sales)		4,483		4,787		-6	%
of which	Western Europe	1,854		1,868		-1	%
"	North America	2,134		2,410		-11	%
"	other countries	495		509		-3	%

Operating income on ordinary activities
(Millions of euros)		2003FY		2002FY		03/02
Aggregates & related products		191		246		-22	%
Ready-mix concrete & concrete products		92		90		2	%
Total Aggregates & Concrete		283		336		-16	%
of which	Western Europe	133		148		-10	%
"	North America	126		178		-29	%
"	other countries	24		10
Divisional overheads

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Roofing
Volumes by destination  (adjusted for the contributions of our proportionally consolidated subsidiaries)
		2003FY		2002FY		03/02
Concrete roof tiles (millions of m²)
Western Europe		64.0		65.0		-2	%
North America		19.9		18.6		7	%
other countries		44.7		43.7		2	%
Clay roof tiles (millions of m²)
Western Europe		24.0		23		4	%
other countries		1.8		1.7		6	%
Chimneys (kms)		2,778		2,715		2	%

Sales (after elimination of inter-divisional sales by destination)
(Millions of Euros)		2003FY		2002FY		03/02
Total		1,510		1,538		-2	%
Western Europe		1,138		1,162		-2	%
	Germany	439		448		-2	%
	Other countries	699		714		-2	%
Other countries		372		376		-1	%

Sales (before elimination of inter divisional sales by origin)
(Millions of Euros)		2003FY		2002FY		03/02
Total		1,510		1,538		-2	%
of which concrete roof tiles	Western Europe	546		553		-1	%
"	North America	106		118		-10	%
	Other countries	112		121		-7	%
of which clay roof tiles		267		255		5	%
of which chimneys (1)		174		166		5	%
of which other roofing products		305		325		-6	%
(1) Including the "other roofing products" of the Chimney business.

Operating income on ordinary activities
(Millions of euros)		2003FY		2002FY		03/02
Total		142		132		8	%
Western Europe		105		103		2	%
	of which Germany	44		33		33	%
	of which other countries	61		70		-13	%
Other countries		37		29		28	%

Page 23 of 30 Total Pages

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Gypsum
Volumes of gypsum wallboard (adjusted for the contributions of our proportionally consolidated subsidiaries)
(millions of m²)	2003FY		2002FY		03/02
Total	632		560		13	%
Sales (after elimination of inter-divisional sales by destination)

(Millions of euros)
	2003FY		2002FY		03/02
Total	1,194		1,146		4	%
of which Western Europe	657		604		9	%
of which North America	226		245		-8	%
of which other countries	311		297		5	%
Sales (before elimination of inter divisional sales by origin)

(Millions of euros)
	2003FY		2002FY		03/02
Total	1,204		1,154		4	%
of which Western Europe	689		637		8	%
of which North America	225		245		-8	%
of which other countries	290		272		7	%

Operating income on ordinary activities
(Millions of euros)
	2003FY		2002FY		03/02
Total	84		51		65	%
of which Europe Occidentale	66		59		12	%
of which North America	-14		-28		-50	%
of which other countries	32		20		60	%

Page 24 of 30 Total Pages

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BCI total contribution
Sales
(Millions of euros)	2003FY		2002FY		03/02
By geographical zone of destination
Western Europe	1,018		1,070		-5	%
Central and Eastern Europe	11		10		10	%
Emerging Mediterranean	27		27		0	%
North America	669		753		-11	%
Latin America & the Caribbean	184		199		-8	%
Sub Saharan Africa/Indian Ocean	240		265		-9	%
Asia /Pacific	465		544		-15	%
By business line
Cement	2,033		2,240		-9	%
Aggregates & Concrete	554		602		-8	%
Others	27		26		4	%
Total	2,614		2,868		-9	%

Estimated effect of exBCI units on Lafarge Group Operating
Income on Ordinary Activities
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	213		225		-5	%
North America	67		84		-20	%
Central and Eastern Europe
Emerging Mediterranean	4
Asia/Pacific	67		69		-3	%
Latin America & the Caribbean	36		40		-10	%
Sub Saharan Africa/Indian Ocean/Others	23		14		64	%
Divisional overheads	9		8		13	%
By business line
Cement	387		406		-5	%
Aggregates & Concrete	23		26		-12	%
Others	9		8		13
Total	419		440		-5	%

Page 25 of 30 Total Pages

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BCI contribution Cement
Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidaries)
(millions of tonnes)	2003FY		2002FY		03/02
Western Europe	12.7		13.2		-4	%
Central and Eastern Europe	0.4		0.3		33	%
Emerging Mediterranean	1		0.6		–
North America	5.2		4.9		6	%
Latin America & the Caribbean	1.3		1.3		0	%
Sub Saharan Africa/Indian Ocean	3.6		4.0		-10	%
Asia/Pacific	9.7		8.9		9	%
Total	33.9		33.2		2	%

Sales after elimination of intra company transactions / by geographical zone of destination
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	935		986		-5	%
Central and Eastern Europe	11		10		10	%
Emerging Mediterranean	27		26		4	%
North America	374		441		-15	%
Latin America & the Caribbean	67		80		-16	%
Sub Saharan Africa/Indian ocean/Others	240		265		-9	%
Asia/Pacific	379		432		-12	%
Total consolidated sales	2,033		2,240		-9	%

Estimated effect of exBCI units on Lafarge Group Operating Income on Ordinary Activities
(Millions of euros)	2003FY		2002FY		03/02
Western Europe	210		223		-6	%
North America	52		65		-20	%
Central and Eastern Europe	0		0
Emerging Mediterranean	4		0
Asia/Pacific	67		69		-3	%
Latin America & the Caribbean	31		35		-11	%
Sub Saharan Africa/Indian ocean/Others	23		14		64	%
Total	387		406		-5	%

Page 26 of 30 Total Pages

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BCI contribution Aggregates & Concrete

Volumes by destination (adjusted for the contributions of our proportionaly consolidated subsidiaries)

Aggregates
(millions of tonnes)	2003FY		2002FY		03/02
Western Europe	0.2		0.2		0	%
North America	11.4		10.1		13	%
Other countries	3.1		2.3		35	%
Total	14.7		12.6		17	%
Concrete
(millions of cbm)	2003FY		2002FY		03/02
Western Europe	1.4		1.4		0	%
North America	2.4		2.3		4	%
Other countries	4.9		4.9		0	%
Total	8.7		8.6		1	%

Sales after elimination of intra company transactions / by geographical zone of destination
(Millions of euros)		2003FY		2002FY		03/02
Aggregates & related products		66		69		-4	%
Ready-mix concrete & concrete products		488		533		-8	%
Total Aggregates & Concrete		554		602		-8	%
of which	Western Europe	71		73		-3	%
"	North America	295		312		-5	%
"	Other countries	188		217		-13	%

Estimated effect of exBCI units on Lafarge Group Operating Income on Ordinary Activities
(Millions of euros)		2003FY		2002FY		03/02
Aggregates & related products		13		17		-24	%
Ready-mix concrete & concrete products		10		9		11	%
Total Aggregates & Concrete		23		26		-12	%
of which	Western Europe	3		2		50	%
"	North America	15		19		-21	%
"	Other countries	5		5		0	%

Page 27 of 30 Total Pages

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Group figures: Capital and development expenditure Analysis of cash-flow statement

	2003FY
	Sustaining		Internal		External
	CAPEX		Development		Development		Total CAPEX
Purchase of property, plant and equipment	536		213		115		864
Investments in consolidated companies	0		0		218		218
Investments in non consolidated companies	0		0		102		102
Total	536		213		435		1,184

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Group figures: incremental pension costs
Operating income on ordinary activities: incremental pension costs
(Millions of euros)	2003FY
By business line
Holding level	62
Cement	21
Aggregates & Concrete	15
Gypsum	1
Total Operating Income on ordinary activities	99

Page 29 of 30 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 February 27th, 2004	Lafarge
	(Registrant)
	By:		/s/ Jean-Pierre Cloiseau
	Name:		Jean-Pierre Cloiseau
	Title:		Senior Vice President, Finance

Page 30 of 30 Total Pages

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