1st Quarter Results
April 26 2005 - 2:00PM
UK Regulatory
RNS Number:5605L
Compagnie de Saint-Gobain
26 April 2005
Press April 26, 2005
release
FIRST-QUARTER 2005 SALES: UP 5.1%
Consolidated sales for the Saint-Gobain Group in the first quarter of 2005,
calculated in accordance with International Financial Reporting Standards
(IFRS), came in at Euro7,633 million, compared with Euro7,261 million for the same
period in 2004 (restated in accordance with IFRS), representing a rise of 5.1%
on an actual structure basis and of 5.7% at constant exchange rates.(*) On a
comparable structure basis, sales contracted by 1.4%, or by 0.7% stripping out
the currency effects,(*) due to the 3.2% fall in sales volumes, which was not
wholly offset by the sharp upswing in sales prices (up 2.5% on average over the
quarter).
These like-for-like sales compare unfavorably with the particularly robust
business levels reported in the first quarter of 2004 - which benefited from the
last deliveries under the Abu Dhabi contract in the Pipe Division - and reflect
the adverse impact of the severe winter on Flat Glass and Building Distribution,
the Group's businesses the most exposed to the European new construction and
renovation markets.
(*) based on average exchange rates for the first quarter of 2004.
Sales trends by business sector, division and geographic area are as follows:
Q1 2005 Q1 2004 % change on % change on a % change
an actual comparable like-for-like
sales sales structure structure
restated in basis basis (comparable
accordance structure and
with currency)
(in Euro IFRS
millions) (in Euro
millions)
BY SECTOR AND DIVISION
Building Distribution 3,227* 2,842 +13.5% -1.9% -1.6%
High-Performance Materials (1) 1,166 1,139 +2.4% +0.9% +2.6%
Ceramics & Plastics and Abrasives 867 846 +2.5% +1.9% +4.0%
Reinforcements 305 303 -0.9% -2.9% -2.5%
Flat Glass 1,081 1,087 -0.6% -0.8% -1.7%
Packaging 901 938 -3.9% -4.2% -2.6%
Construction Products (1) 1,394 1,385 +0.7% -0.8% +0.6%
Building Materials 581 561 +3.5% +2.4% +5.2%
Insulation 496 476 +4.1% +0.9% +1.8%
Pipe 322 352 -8.7% -8.6% -8.6%
INTERNAL SALES AND OTHER -136 -130 ------ ------ -----
GROUP TOTAL 7,633** 7,261** +5.1% -1.4% -0.7%
BY GEOGRAPHIC AREA
France 2,679 2,611 +2.6% +0.0% +0.0%
Other western European countries 3,179 2,950 +7.8% -5.5% -5.1%
North America 1,358 1,333 +1.9% +1.8% +6.4%
Emerging countries and Asia-Pacific 870 767 +13.4% +8.9% +5.5%
INTERNAL SALES -454 -400 ----- ----- -----
GROUP TOTAL 7,633** 7,261** +5.1% -1.4% -0.7%
* of which Euro339 million relating to Dahl
** including Euro52 million of side income (Euro42 million in Q1 2004)
(1) including inter-division eliminations.
Overall, sales prices have jumped across most of the Group's Sectors and
Divisions, on the back of the price rises implemented throughout 2004 and, for
some businesses, in the first quarter of 2005. Sales volumes dropped back in
Group's operations exposed to the construction market in Europe due to the
severe winter weather in Western and Eastern Europe, and to a reduced number of
working days - ranging from 1 to 3 depending on the country - compared with the
same period in 2004. Sales for the Pipe Division also struggled with an
unfavorable basis for comparison, with first-quarter 2004 benefiting from the
last deliveries made under the Abu Dhabi contract. However, business held firm
for Building Materials and Insulation Divisions, buoyed by a vigorous
residential housing market in the US. High-Performance Materials also delivered
consistent sales, in line with the forecast economic scenario presented at the
beginning of 2005. The Group's performance in non European emerging countries
and Asia remains strong, with an increase of 5.5% in like-for-like sales
(constant Group structure and exchange rates).
* * *
New businesses:
Building Distribution experienced a 13.5% surge in sales, thanks to the
contribution of recent acquisitions to first-quarter revenues, in particular
that of Dahl. Like-for-like sales dipped slightly, reflecting an unfavorable
basis for comparison (with first-quarter 2004 organic growth of 7.5% boosted by
favorable climatic conditions and a higher number of working days), and the
far-reaching impact of the severe winter weather throughout Europe in February
and March 2005. Germany, Central Europe and the United Kingdom were the worst
hit, while France and Spain achieved moderate first-quarter growth, despite
fewer working days.
High-Performance Materials reported the Group's strongest like-for-like growth,
at 2.6%, thanks mainly to an overall rise in sales volumes and prices for
Ceramics & Abrasives, which are still enjoying the benefits of the upturn in
manufacturing and capital spending, especially in the US. Sales prices in the
Reinforcements Division advanced for the first time in two years.
Historic businesses:
Flat Glass sales retreated slightly, reflecting lower volumes on the European
building market compared with the first quarter of 2004, due to the severe
weather conditions. Float glass prices were on an upward trend. However, prices
fell back slightly in glass processing for the Building industry and in
Automotive Flat Glass in Europe, the latter being due to an unfavorable product
mix. Business remained virtually stable on Europe's automotive market, while it
notched up impressive gains in emerging countries.
Packaging saw a slight dip in like-for-like sales, with higher sales prices
across all its activities more than offset by a drop in sales volumes in the
European wine market since last Fall.
Construction Products (CP) reported like-for-like results on a par with
first-quarter 2004, despite the strong fall in Pipe sales, down 8.6% on a
constant structure and exchange rate basis, further to the last deliveries made
under the Abu Dhabi contract at the end of first-quarter 2004. Sales for the
Building Materials and Insulation Divisions continued to reap the benefits of a
buoyant construction market in the US, which was not affected by any major
climatic impact. The vigorous sales posted in the US mitigated the impact of the
severe winter weather that hit Europe in the first quarter of 2005.
* * *
The breakdown of sales by geographic area reveals, on a like-for-like basis,
robust business levels in France - with the exception of Pipe - and especially
in the United States. Growth in other western European countries generally
registered a slight contraction due to climatic conditions. Emerging countries -
particularly Asia and Latin America - remained buoyant.
* * *
Asbestos claims in the United States: Around 6,000 new claims were filed against
CertainTeed in the first quarter of 2005, including only 50 in the State of
Mississippi. This slight increase compared with the same period of 2004 (5,000
new claims including 700 in Mississippi) reflects an influx of approximately
3,000 mass claims not supported by any medical proof in the State of Kentucky.
7,000 claims were resolved in the first quarter of 2005, compared with 5,000 in
the first quarter of 2004, and 3,000 claims were transferred in "inactive
dockets". Consequently, the number of outstanding claims at March 31, 2005
continued to drop, to around 102,000, compared with 106,000 at December 31,
2004.
The average cost of settlement over the past 12 months stands at USD 3,000 per
claim, on a par with previous period.
Driven by the new Chairman of the US Senate Judiciary Committee, further active
negotiations have taken place during the last few weeks concerning the proposed
legislation to set up a National Asbestos Trust Fund. An amended bill
co-sponsored by three Democrats and three Republicans is expected to be put
before the Judiciary Committee in the next few days.
* * *
Outlook: Saint-Gobain first-quarter performance is not representative of
full-year trends, and this is particularly the case in 2005. The Group expects
sales volumes to pick up over the next few months and therefore confirms its
full-year target of 6% growth in operating income (calculated in accordance with
IFRS) on a constant exchange rate basis. The Group also aims to maintain strong
free cash flow levels.
* * *
Forthcoming results announcements:
- First-half 2005 results: July 28, 2005, after close of trading on the
Paris bourse.
Investor Relations Department
Florence Triou-Teixeira Tel.: +33 1 47 62 45 19
Alexandre Etuy Tel.: +33 1 47 62 37 15
Fax: +33 1 47 62 50 62
This information is provided by RNS
The company news service from the London Stock Exchange
END
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