RNS Number:2370K
Compagnie de Saint-Gobain
24 March 2005
March 24, 2005
press
release
FINAL RESULTS FOR 2004:
Confirmation of the figures published at the end of January 2005
> STRONG GROWTH IN OPERATING PERFORMANCE
- Sales up 8.2% to EUR 32,025 million,
- Operating income up 7.8% to EUR 2,632 million,
up 10.3% at constant exchange rates*.
On a like-for-like basis:
- Sales up 4.6%
- Operating income up 8.1%
> NET INCOME EXCLUDING CAPITAL GAINS UP BY 10%, to EUR 1,122 million
> FURTHER DECREASE IN NET DEBT, to EUR 5.6 billion.
DIVIDEND FOR 2004 recommended for approval by the AGM: EUR 1.28 per share,
up 11.3%.
2005 TARGETS CONFIRMED:
> to achieve 6% growth in operating income at constant exchange rates (average
2004 exchange rates) and based on comparable accounting standards.
> to maintain strong free cash flow levels.
(*) based on average 2003 exchange rates
At its meeting of Thursday March 24, 2005, the Board of Directors of
Saint-Gobain reviewed the Group's consolidated financial statements for 2004.
* Analysis of the 2004 key consolidated data:
The key consolidated data for the Group, as well as the results by business
sector, division and geographical area set out in the appendix, are exactly the
same as the estimated figures published at the end of January(**). These figures
are as follows:
2003 2004
in EUR in EUR %
millions millions change
(1) (2) (2)/(1)
Net sales 29,590 32,025 +8.2%
Operating income 2,442 2,632 +7.8%
Dividend income 12 3 -75.0%
Interest and other financial charges, net (457) (441) -3.5%
Non-operating costs (275) (280) +1.8%
Income before profit on sales of non-current assets and 1,722 1,914 +11.1%
taxes
Profit (loss) on sales of non-current assets, net 86 (44) n.m.
Provision for income tax (595) (603) +1.3%
Amortization of goodwill (154) (155) +0.6%
Share in net results of equity investees 6 8 +33.3%
Net income before minority interests 1,065 1,120 +5.2%
Minority interests (26) (37) +42.3%
Net income 1,039 1,083 +4.2%
Earnings per share (in EUR) 2,99 3.18 +6.4%
Earnings per share excluding treasury stock (in EUR) 3,09 3.23 +4.5%
Net income excluding profit on sales of non-current assets 1,020 1,122 +10.0%
Earnings per share excluding profit on sales of 2.93 3.29 +12.3%
non-current assets (in EUR)
Earnings per share excluding profit on sales of 3.03 3.35 +10.6%
non-current assets and treasury stock (in EUR)
Cash flow from operations 2,471 2,612 +5.7%
Cash flow excluding capital gains tax 2,540 2,608 +2.7%
Capital expenditure 1,351 1,537 +13.8%
Investments in securities 789 899 +13.9%
Net indebtedness 5,657 5,566 -1.6%
All of the comments made at the end of January(**) about the Group's
consolidated financial statements therefore apply to the final figures.
* * *
Asbestos claims against CertainTeed in the United States:
The Group confirms the figures and comments relating to 2004, published at the
end of January(**) concerning this issue.
At the initiative of the new Chairman of the US Senate Judiciary Committee,
active negotiations have resumed in the past few weeks concerning the draft
legislation to create a federal asbestos trust fund. A new bill is expected to
be put before the Senate soon.
* * *
* Annual General Meeting:
The Board of Directors also reviewed the accounts of Compagnie de Saint-Gobain,
the parent company. Net income amounted to EUR 766 million for the year ended
December 31, 2004, compared with EUR 514 million for 2003.
At the General Meeting of the Company's shareholders, called for June 9, 2005,
the Board will recommend the distribution of EUR 429 million (representing 38.2%
of net income excluding capital gains). The dividend per share would therefore
amount to EUR 1.28, an increase of 11.3% over last year. Based on today's
closing share price, this dividend represents a gross yield of 2.75%. The
dividend will be paid entirely in cash as from June 23, 2005.
In addition, the Board of Directors will ask the General Meeting of June 9, 2005
to renew the terms of office as directors of Gianpaolo Caccini, Jean-Martin Folz
and Michel Pebereau, and to appoint Gerhard Cromme, Chairman of the
ThyssenKrupp's Supervisory Board (replacing Rolf-E. Breuer), and Jean-Cyril
Spinetta, Chariman of Air-France KLM (replacing Bruno Roger), to the Board of
Directors.
* 2005 outlook and targets: the Group confirms that in 2005 it will
aim to achieve 6% growth in operating income at constant exchange rates (average
2004 exchange rates) and based on comparable accounting standards. The group
also aims to maintain strong free cash flow levels.
(**) The press release relating to the Group's estimated 2004 results -
published at the end of January 2005 - is available on the Saint-Gobain website
at www.saint-gobain.com.
Forthcoming results announcements:
- Main impacts of the changeover to IFRS on the Group's 2004 consolidated
financial statements: March 29, 2005, after close of trading on the Paris
stock-exchange.
- Sales for the first quarter of 2005 (under IFRS): April 26, 2005, after close
of trading on the Paris stock-exchange.
Investor Relations Department
Mrs. Florence Trious-Teixeira Tel.: +33 1 47 62 45 19
Mr. Alexandre ETUY Tel.: +33 1 47 62 37 15
Fax: +33 1 47 62 50 62
Final results by Business Sector, Division and
Geographic Area
(In millions of euros)
Change on a
Change on Change on a comparable
I. SALES 2003 2004 an actual comparable structure and
structure structure currency
basis basis basis
1degrees) By sector and division:
Building Distribution (1) 11 305 13 679 +21,0% +5,3% +5,0%
High-Performance Materials (1) 4 452 4 717 +6,0% +3,7% +8,9%
Ceramics and Plastics & Abrasives 3 256 3 473 +6,7% +5,3% +10,8%
Reinforcements 1 212 1 264 +4,3% -0,2% +4,0%
Flat Glass (1) 4 298 4 394 +2,2% +1,4% +2,9%
Packaging (1) 3 869 3 779 -2,3% -2,8% +0,8%
Construction Products (1) 6 233 6 004 -3,7% +0,5% +4,3%
Building Materials 2 824* 2 625 -7,0% +3,1% +9,6%
Insulation 1 909 2 018 +5,7% +5,0% +8,1%
Pipe 1 516 1 381 -8,9% -9,3% -9,1%
Internal sales and misc. -567 -548 n.m. n.m. n.m.
GROUP TOTAL 29 590 32 025 +8,2% +2,4% +4,6%
2degrees) By geographic area:
France 9 926 10 704 +7,8% +4,1% +4,1%
Other western European countries 12 225 13 743 +12,4% +1,7% +1,2%
North America 5 735 5 727 -0,1% +0,3% +10,1%
Emerging countries and Asia 3 127 3 553 +13,6% +8,9% +13,9%
Internal sales -1 423 -1 702 n.m. n.m. n.m.
GROUP TOTAL 29 590 32 025 +8,2% +2,4% +4,6%
(1) including inter-division
eliminations
* including companies sold in 2003:
304 million euros
Change on
II.OPERATING INCOME 2003 2004 an actual
structure
basis
1degrees) By sector and division:
Building Distribution 560 737 +31,6%
High-Performance Materials 370 466 +25,9%
Ceramics and Plastics & Abrasives 273 392 +43,6%
Reinforcements 97 74 -23,7%
Flat Glass 471 440 -6,6%
Packaging 442 440 -0,5%
Construction Products 584 507 -13,2%
Building materials 265* 195 -26,4%
Insulation 168 242 +44,0%
Pipe 151 70 -53,6%
Miscellaneous 15 42 +180,0%
GROUP TOTAL 2 442 2 632 +7,8%
2degrees) By geographical area:
France 884 825 -6,7%
Other western European countries 779 906 +16,3%
North America 452 481 +6,4%
Emerging countries and Asia 327 420 +28,4%
GROUP TOTAL 2 442 2 632 +7,8%
* including companies sold in 2003:
61 million euros
Change on
2003 2004 an actual
III. CASH FLOW structure
basis
1degrees) By sector and division:
Building Distribution 398 515 +29,4%
High-Performance Materials 435 490 +12,6%
Ceramics and Plastics & Abrasives 291 356 +22,3%
Reinforcements 144 134 -6,9%
Flat Glass 548 508 -7,3%
Packaging 504 490 -2,8%
Construction Products 526 538 +2,3%
Building Materials 172* 203 +18,0%
Insulation 210 267 +27,1%
Pipe 144 68 -52,8%
Miscellaneous 60** 71** +18,3%
GROUP TOTAL 2 471 2 612 +5,7%
2degrees) By geographic area:
France 832 827 -0,6%
Other western European countries 800 878 +9,8%
North America 450** 441** -2,0%
Emerging countries and Asia 389 466 +19,8%
GROUP TOTAL 2 471 2 612 +5,7%
* including companies sold in 2003:
56 million euros
** after asbestos-related charge (net of tax)
of _66m in 2003 and _72m in 2004.
Change on an
2003 2004 actual
IV. CAPITAL EXPENDITURE structure
basis
1degrees) By sector and division:
Building Distribution 213 249 +16,9%
High-Performance Materials 251 239 -4,8%
Ceramics and Plastics & Abrasives 108 132 +22,2%
Reinforcements 143 107 -25,2%
Flat Glass 364 448 +23,1%
Packaging 265 302 +14,0%
Construction Products 257 294 +14,4%
Building Materials 117* 102 -0,1%
Insulation 90 145 +61,1%
Pipe 50 47 -6,0%
Miscellaneous 1 5 n.m.
GROUP TOTAL 1 351 1 537 +13,8%
2degrees) By geographic area:
France 305 361 +18,4%
Other western European countries 459 483 +5,2%
North America 233 274 +17,6%
Emerging countries and Asia 354 419 +18,4%
GROUP TOTAL 1 351 1 537 +13,8%
* including companies sold in 2003:
14 million euros
Saint-Gobain's acquisitions in 2004
Financial investment of Euro658 million for additional sales of almost Euro2 billion
The purpose of this press release is to provide an update on the acquisitions
carried out by the Group in 2004 (not including share buybacks by Compagnie de
Saint-Gobain), and particularly those which were not specifically announced at
the time.
Acquisitions are a cornerstone of the Group's business development strategy, and
are mainly pursued in three directions:
- Building Distribution - primarily made up of local-based operations
offering significant external growth potential in Europe, particularly through
bolt-on acquisitions, and acquisitions of small and medium-sized companies.
- High-Performance Materials - involving operations carried out on a
global scale - offers acquisition opportunities in both developed and emerging
countries, allowing the Group to respond to the needs of its industrial partners
around the world.
- Historic Businesses - whose growth potential is primarily
concentrated in emerging countries (China, India, Latin America, Russia and
Eastern Europe).
In each of these three groups of businesses, Compagnie de Saint-Gobain is faced
with a broad spectrum of acquisition opportunities. The opportunities it decides
to take up are selected on the basis of stringent criteria, including the
quality of the teams available, responsiveness to customer needs, and proven
ability to create value for the Group.
In 2004, excluding Dahl, the Saint-Gobain Group primarily carried out bolt-on
acquisitions in the Building Distribution sector, alongside various transactions
in emerging countries within the Historic Businesses and High-Performance
Materials sectors.
* * *
Overview of 2004 acquisitions by group of businesses
2004 acquisitions Value of Debt Enterprise Estimated 2004
securities acquired value full-year sales *
(in Euro m) acquired
Distribution - Dahl 384 312 696 1,503
Distribution - bolt-on acquisitions 145 -17 128 317
Historic Businesses 102 7 109 120
High-Performance Materials 27 3 30 28
TOTAL acquisitions 658 305 963 1,968
* Building Distribution: Financial investment of Euro529 million for additional
sales of Euro1,820 million.
In addition to the acquisition of the Scandinavian-based Dahl (financial
investment of Euro384 million and Euro1,503 million in acquired sales), the
Distribution sector carried out 30 bolt-on acquisitions in France, the United
Kingdom and Germany, representing a financial investment of Euro145 million for
additional sales of Euro317 million.
The principal transactions broken down by country were as follows:
France - 18 companies acquired (61 sales outlets), representing total full-year
sales of Euro135 million
- 8 specialized distributors, namely Boch Freres, a tiling and bathroom
specialist, Mi-Landes (Cazenave group) in south-western France, specialized in
roofing products, Cessac and Sobem - two companies specializing in wood and
paneling based in the Paris region and in Normandy, the Paris-based plumbing and
heating specialist Navatte, and Salgado, operating in the plumbing and heating
sector in the Aude and Pyrenees orientales regions.
- 10 general distributors, namely Le Groupe Lejeune in Brittany, Porcher
Materiaux based in Central France, and Combronde.
United Kingdom - 10 companies acquired (24 sales outlets), representing total
full-year sales of Euro79 million
- 5 specialized distributors, including Northern Ireland-based Philip M.
Bassett, specializing in plumbing and heating, Eastern Glazed Ceramics, a
distributor of ceramic wall and floor tiles in south-western England, and tiling
specialists Maxon Tile Distributors.
- 5 general distributors, including Pudsey Building Supplies in Yorkshire, E.P.
Builders Merchants in Leicester and Stanley Milnes Ltd.
Germany - 2 companies acquired (19 sales outlets), representing full-year sales
of Euro103 million
The acquisitions involved two specialist distributors, namely Kluwe, tiling
distributor, and Muffenrohr, specialized in public works, in which the Group
purchased the remaining stake of 50%.
* Historic Businesses: Financial investment of Euro102 million for additional
sales of approximately Euro120 million.
Acquisitions in emerging countries: 11 transactions representing full-year sales
of approximately Euro53 million
In line with the Group's business model, growth in the Historic Businesses is
more keenly felt in emerging countries, where domestic markets will prove key to
business expansion efforts in the next few years.
- In emerging countries, the Flat Glass sector made a series of acquisitions,
primarily in China, where the largest acquisition concerned the Quingdao float
line. These transactions represent full-year sales of Euro36 million.
- Acquisitions in the Construction Products sector (Building Materials &
Insulation) in the Czech Republic and in China represented full-year sales of
Euro17 million at the transaction date.
Other acquisitions by the Historic Businesses: 10 transactions for full-year
sales of Euro67 million
The Historic Businesses made a series of local and regional bolt-on
acquisitions, particularly in the Construction Products sector, representing Euro54
million in sales. In the Mortars business, the Building Materials division
acquired French-based Mauer, Eurovente/Strasservil, Emfi France (plant
specialized in glues for tiling), as well as Lusocil in Portugal. The Insulation
division acquired Plafometal, the leading French producer of metal frames and
suspended metal ceilings.
* High-Performance Materials: Financial investment of Euro27 million for
additional sales of Euro28 million.
The High-Performance Materials sector made a series of investments in emerging
countries with the aims of partnering its industrial customers worldwide and of
reducing its costs. All of the sector's financial investments were made in
Reinforcements:
- In China, the Group created Saint-Gobain Technical Fabrics HongFa, a
joint-venture based in Changzhou specializing in fabrics for the composites
industry.
- In Russia, the Group acquired 85% of Steklovolokno, the leading
manufacturer of reinforcement threads in Russia.
- In Romania, the Group acquired Rompoliner, specialized distributor of
products for reinforcements.
* * *
Investor Relations Department
Florence TRIOU-TEIXEIRA Tel.: +33 (0)1 47 62 45 19
Alexandre ETUY Tel.: +33 (0)1 47 62 37 15
Fax: +33 (0)1 47 62 50 62
This information is provided by RNS
The company news service from the London Stock Exchange
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