1st Quarter Results
April 26 2007 - 1:20PM
UK Regulatory
RNS Number:6147V
Compagnie de Saint-Gobain
26 April 2007
April 26, 2007
press
release
FIRST-QUARTER 2007 SALES:
- UP 7.2% ON A REPORTED BASIS
- UP 8.0% LIKE-FOR-LIKE
Consolidated first-quarter sales for the Saint-Gobain Group came in at Euro10,447
million, compared with Euro9,745 million in the same year-ago period, representing
a rise of 7.2% on an actual structure basis and 9.0% at constant exchange rates.
The perimeter evolution accounted for 1.0% of sales, with the contribution from
bolt-on acquisitions (mainly in the Construction Products and Building
Distribution sectors) being slightly above that from disposals (chiefly Synflex
within the High-Performance Materials sector and Calmar within the Packaging
sector). The currency effect had a negative -1.8% impact, mainly as a result of
the decline in the US dollar.
Like-for-like consolidated sales climbed 8.0%(*) or Euro772 million, with a strong
growth coming both from volumes (+4.3%) and prices (+3.7%).
All of the Group's business sectors reported an increase in like-for-like sales.
Businesses related to the construction market in Europe delivered robust growth,
with strong showings from most of Western Europe, notably Germany, Southern
Europe (Spain and Italy), the Nordic countries and France. Emerging countries
continued to turn in a very strong performance, especially Eastern Europe, where
sales were boosted by particularly favorable weather conditions.
In line with the scenario announced early this year, the slowdown in the US only
affected the residential construction sector, and is largely offset by the
Group's performance in all other geographic regions.
(*) Based on average exchange rates for first-quarter 2006.
Sales trends by business sector and geographic area break down as follows:
Q1 2007 sales Q1 2006 % change on % change on a % change
an actual comparable like-for-like
(in millions sales structure structure
of euros) (in millions basis basis
of euros)
BY BUSINESS SECTOR
Flat Glass 1,369 1,218 +12.4% +12.5% +14.2%
High-Performance Materials (1) 1,241 1,301 -4.6% -2.7% +1.9%
Ceramics & Plastics and Abrasives 916 948 -3.4% -0.7% +4.4%
Reinforcements 328 356 -7.9% -7.8% -4.4%
Construction Products (1) 2,720 2,630 +3.4% +2.0% +4.7%
Building Materials 586 635 -7.7% -8.4% -3.3%
Insulation 685 600 +14.3% +8.0% +10.0%
Gypsum 1,000 956 +4.6% +6.0% +8.4%
Pipe 461 446 +3.4% +1.4% +2.2%
Building Distribution 4,424 3,810 +16.1% +11.3% +11.0%
Packaging 955 1,011 -5.6% +4.0% +7.2%
Internal sales and other (262) (225) -------- ------ -----
GROUP 10,447 9,745 +7.2% +6.2% +8.0%
BY GEOGRAPHIC AREA
France 3,277 3,024 +8.4% +7.4% +7.4%
Other western European countries 4,725 4,113 +14.9% +11.6% +11.0%
North America 1,473 1,819 -19.0% -15.1% -7.3%
Emerging countries and Asia-Pacific 1,533 1,307 +17.3% +14.5% +19.6%
Internal sales (561) (519) ----- ----- -----
GROUP 10,447 9,745 +7.2% +6.2% +8.0%
(1) Including inter-division eliminations.
Performance of Group business sectors
The Flat Glass sector delivered the Group's best organic growth performance, at
+14.2% on a like-for-like basis. This reflects a sharp volume increase in the
Construction market in emerging countries and Europe, which is also feeling the
positive effects of a surge in demand for energy efficient glass. The very
favorable price trends that commenced on European building markets mid-2006
continued. The automotive flat glass business also performed well across the
globe.
Within the High-Performance Materials sector, the Ceramics, Plastics and
Abrasives divisions reported healthy organic growth of +4.4% while the sales of
Reinforcements business was down. Overall, the High-Performance Materials sector
recorded a moderate +1.9% growth in like-for-like sales.
The Construction Products (CP) sector posted +4.7% like-for-like growth, Europe
and emerging countries more than offsetting the downturn in housing starts in
the US.
- Gypsum and Insulation businesses benefited from favorable regulatory and
fiscal measures promoting home improvement (in particular measures designed
to encourage energy efficiency), reporting respectively strong internal
growth of +8.4 % and +10% amid a vigorous trading environment in Europe and
emerging countries.
- In the Building Materials division (down -3.3% like-for-like), the exterior
products business in the United States was hit by the overall slowdown in
the housing market, which was not fully offset by the very robust
performance achieved by the mortars business in Europe and emerging
countries.
- Pipe registered a solid rise in business across its principal geographic
segments.
Building Distribution delivered the Group's strongest growth on a reported
basis, at +16.1% overall (around +5% of which was due to acquisitions and +11%
to organic growth). All countries, but particularly Germany, central Europe,
Scandinavia and France, contributed to this vigorous performance, on the back of
favorable weather conditions at the start of the year. Growth on the UK market
was more moderate.
Organic growth for the Packaging business came in at +7.2% thanks to a strong
price effect and buoyant sales volumes in Europe, while Latin America and North
America businesses advanced at a more moderate pace.
* * *
Sales analysis by geographic area
The breakdown of sales by geographic area is in line with the trends observed in
second-half 2006. Based on constant Group structure and exchange rates:
- Sales in France (29.8% of total Group turnover in the first quarter of
2007) continued to perform well, up +7.4% like-for-like. Sales in other
western European countries (42.9% of total Group Turnover) also picked up
pace (average rise of +11% like-for-like), substantiating the vigor of the
German economy and the continued growth in Southern Europe.
- North America (13.4% of total Group turnover) reported a marked decline in
sales (like-for-like down -7.3%) on the back of a significant fall-off in
housing starts. This was partially offset by the strength of other sectors
of the US economy, especially non-residential construction and industrial
investment.
- Emerging countries (13.9% of total Group turnover) reported vigorous growth
of +19.6% like-for-like. Eastern Europe turned in the most noteworthy
performance of the first quarter, its robust structural growth having being
boosted by a mild winter. Latin America and Asia also performed well.
* * *
Update on asbestos claims in the United States
New claims filed against CertainTeed during the first quarter 2007 were
approximately 2,000, which is equivalent to the number of claims which were
settled during the same period. As a consequence, approximately 76,000 claims
remained outstanding at the end of March 2007, similar to the situation at the
end of December 2006. At end of March 2007, the average cost of claims settled
in the past twelve months or in the process of being settled came to around USD
3,200, slightly increasing compared to December 2006 (USD 3,000).
* * *
Outlook
The first three months of the year have confirmed the trend observed in
second-half 2006 and the scenario envisaged at the end of January for 2007,
namely a strong trading environment in Europe, which is more than offsetting the
housing slowdown in the United States.
The Group expects this trend to continue in the coming months and in this
respect confirms its objectives* for the year:
- a robust increase in operating income at constant exchange rates;
- and a double-digit growth in net income excluding capital gains and losses.
* These objectives are based on the divestiture of Saint-Gobain Desjonqueres
(done on March 29, 2007) and on the assumption that the Reinforcements &
Composites business will be deconsolidated in 2007, but do not reflect any other
major scope adjustments that may occur in 2007.
* * *
Forthcoming results announcements:
- final results for first-half 2007: July 26, 2007, 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
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