LafargeHolcim (XSWX:LHN, Financial) (39%, 1.91%, 12%, 0.50%), the world’s largest cement producer, added to the Fund’s strong returns for the quarter and the year. Lafarge benefitted as North American cement pricing grew modestly, while volumes surged 11% in the last quarter. Lafarge’s European and Latin American operations also delivered excellent results. 2018 was also a good year for accretive asset sales, and as the year progressed, the market became more comfortable with the prospect of additional sales. Since assuming control two years ago, CEO Jan Jenisch has improved the company’s operational and capital allocation discipline. He still has more levers to pull that are not dependent on global macro conditions. Our appraisal of Lafarge’s value increased alongside the stock price throughout the year, and we trimmed our position as price appreciated in the first quarter and second half of the year.
From Longleaf Partners' fourth-quarter 2019 shareholder commentary.
