Building material company Lafarge announced on Thursday that this year's demand for cement will probably rise 2% to 5% in countries, where the company operates. Lafarge has successfully been able to maintain its 2015 forecast for growth in demand of cement globally.

The proceeds from divestments and cost cuts have helped the cement giant to raise the net income to 310 million francs from the last year's net income of 80 million francs. First-quarter current operating income has grown by 40% to 205 million euros.

The high first-quarter profits reflect that the cost saving targets of the company is on track as the company has decreased its group net loss to 96 million euros, much lower than the loss of 135 million euros incurred last year.

Lafarge is soon expected to merge with Switzerland's Holcim Ltd., to form the world's largest cement maker. Awaiting the approval by shareholders, the merger will lead to cost savings of 1.4 billion euros annually.

Since the deal was agreed last year, some are apprehensive about the performance of Lafarge. The Holcim shareholders have also opposed the appointment of Lafarge CEO, Bruno Lafont as head of the new group. Therefore, Eric Olsen will now lead the combined operation off the two companies.

Thomas Schmidheiny, Holcim's largest shareholder and co-architect of the merger, is supporting the merger. Eurocement Holding AG, Holcim's second-biggest shareholder, has also agreed to back the merger. The tie-up would create a cement maker with a market value of more than $46 billion.

However, owing to the sluggish demand in Europe and Canada the sales have declined by 2.8%. The merger is surely a breather, as it would provide a competitive advantage to the companies, at a time when the global recession has eroded demand for building materials and consequently many kilns have been shut down.