GBL Q3 profit up on Lafarge impairment reverse

BRUSSELS, Nov 6 (Reuters) - Belgian holding company Groupe Bruxelles Lambert (GBL) (GBLB.BR) said it had booked a sharp rise in third-quarter profit after reversing a writedown of its holding in French cement maker Lafarge (LAFP.PA).

GBL, part owned by Belgian billionaire Albert Frere, said on Friday consolidated July-September profit was 979 million euros ($1.46 billion), more than triple the 293 million reported a year ago.

The part reversal of a 1.09 billion euro writedown on Lafarge added 650 million to profit.

Advance 2009 payments from GDF Suez (GSZ.PA) and Total (TOTF.PA) of 195 million euros and 45 million of withholding tax reimbursement also boosted the bottom line.

GBL said it expected cash earnings at the end of the year to be in line with those at the end of September -- 611 million euros -- given the third quarter had included advance payments from GDF Suez and Total.

It said consolidated earnings would be influenced by contributions from associated companies Lafarge, Imerys (IMTP.PA) and ECP, adjustments of the fair value of financial instruments and disposals or impairments.

GBL has not made any disposals in the year to date.

Its net cash at the end of September was 400 million euros, including the GDF Suez and Total dividends to be collected in the fourth quarter. It said it still had access to 1.8 billion euros of credit lines.

The third quarter is a weak period for GBL as it typically does not receive income from participations.

Most net dividends on investments, which make up GBL's cash earnings, are collected during the first half of the year.

The company obtained two seats on the board of French spirits group Pernod Ricard (PERP.PA) earlier this week.

It participated in the group's capital increase earlier this year and currently holds an 8.9 percent stake, making it its second-biggest shareholder.

Pernod Ricard shareholders also approved a dividend of 0.5 euro, which will boost GBL's earnings.

Separately on Friday, Lafarge said it had been hit hard by the global recession as sales and profits slumped, but recovery would come to developed markets by the second half of 2010. [ID:nL6713710] (Reporting by Philip Blenkinsop; Editing by Dan Lalor) ($1=.6722 Euro)