TIDMCOD
RNS Number : 7177H
Compagnie de Saint-Gobain
25 February 2010
February 25, 2010
+---+--+------------------------------+--------------+--------+--------+--------+
| | 2009 ACTION PLAN: AHEAD OF TARGETS |
+---+---------------------------------------------------------------------------+
| | |
| | > Sales prices: +0.8% over the year. |
| | |
| | > Cost savings over the year: EUR1,100m. |
| | |
| | > Second-half operating income and recurring net income |
| | well above the first half: respectively, +38% and +94%. |
| | |
| | > Free cash flow¹ for the year above EUR1bn(EUR1,019m), and |
| | reduction of EUR1.4bn in working capital requirements (WCR). |
| | |
| | > Sharp reduction in capex: -EUR900m and |
| | tight rein on acquisitions, down to EUR204m. |
| | |
| | > Balance sheet strengthened: EUR3.1bn of net debt paid down; |
| | gearing ratio cut to 53% of equity. |
| | |
+---+ +
| | |
+---+ +
| | |
+---+ +
| | |
+---+ +
| | |
+---+ +
| | |
+---+---------------------------------------------------------------------------+
| | |
+---+---------------------------------------------------------------------------+
| | 2009 DIVIDEND UNCHANGED AT EUR1 PER SHARE |
+---+---------------------------------------------------------------------------+
| | |
+---+---------------------------------------------------------------------------+
| | 2010 TARGET: STRONG GROWTH IN OPERATING INCOME (AT CONSTANT EXCHANGE |
| | RATES²) |
+---+---------------------------------------------------------------------------+
| | |
+---+---------------------------------------------------------------------------+
| | | 2009 KEY FIGURES | FY 2009 | H1 | H2 | |
| | | (EURm) | | 2009 | 2009 |Change |
| | | | | | | H2/H1 |
| | | | | | | |
+---+--+------------------------------+--------------+--------+--------+--------+
| | | Net sales | 37,786 |18,715 |19,071 | +1.9% |
| | | | (-13.7%) | | | |
+---+--+------------------------------+--------------+--------+--------+--------+
| | | | | | | |
+---+--+------------------------------+--------------+--------+--------+--------+
| | | Operating income | 2,216 | 930 | 1,286 | +38% |
| | | | (-39.3%) | | | |
+---+--+------------------------------+--------------+--------+--------+--------+
| | | | | | | |
+---+--+------------------------------+--------------+--------+--------+--------+
| | | Recurring net income³ |617 (-67.8%) | 210 | 407 | +94% |
+---+--+------------------------------+--------------+--------+--------+--------+
| | | | |
| | | 1. Excluding the tax effect of capital gains and losses on | |
| | | disposals, exceptional asset write-downs and material | |
| | | non-recurring provisions. | |
| | | 2. Exchange rates for 2009. | |
| | | 3. Excluding capital gains and losses on disposals, asset | |
| | | write-downs and material non-recurring provisions. | |
| | | | |
+---+--+------------------------------+--------------+--------+--------+--------+
Operating performance
Against the backdrop of an unprecedented economic and financial crisis affecting
virtually all sectors and countries across the globe, trading for the Group was
sluggish throughout 2009 in most of its businesses and geographic areas.However,
there was a relative improvement over the second half of the year compared with
the first half, in terms of both like-for-like growth and profitability. Gains
in profitability were chiefly attributable to the cost cutting program
implemented. The Group therefore considers that business bottomed out overall in
2009. Nevertheless, the global economic climate remained very challenging in the
second half of the year. Only Asian and Latin American countries saw a
significant pick-up in trading between the first and second half of the year
(around 20%), and have now put the crisis behind them. While trading in both
Western and Eastern Europe along with North America seems to have stabilized
overall at a low level (particularly in Construction), certain industries such
as the automotive sector saw an improvement in the second half of the year.
Household consumption, in turn, remained relatively less affected by the
downturn in the economic climate in 2009.
The Group as a whole reported a 13.2% decline in like-for-like sales for 2009
(-15.5% in the first half and -10.8% in the second). This decline is due to a
sharp 14.0% fall in sales volumes over the year (-17.2% in the first half
and -10.6% in the second). Sales prices, in contrast, held firm over the year in
all business sectors except Flat Glass, allowing the Group to benefit from a
positive spread between prices and the cost of raw materials and energy.
However, prices slipped 0.2% in the second half of the year after a rise of 1.7%
in the six months to June 30, due mainly to a strong performance in the
comparative period. The cost savings realized by the Group drove a significant
rise in its operating margin in the second half of the year, up to 6.7% versus
5.0% in the first half.
1 ) Performance of Group business sectors
All of the Group's business sectors with the exception of Packaging were hit by
a sharp decline in sales volumes and profitability over the year, although there
was a relative improvement in the second half compared with the six months to
June 30.
After being the hardest hit by the economic crisis in the first half of 2009,
Innovative Materials staged the strongest recovery in the second half of the
year, in terms of both sales and profitability, lifting the sector's operating
margin from 2.7% in the first half to 6.7% in the following six months.
· Flat Glass posted a strong like-for-like advance in sales in the second
half of the year compared with the six months to June 30, powered by a sharp
upturn in sales volumes in Asia and Latin America, and in Automotive Flat Glass
across the globe, as well as a steep rise in the price of commodity products
(float glass) in Europe during the second half of the year. Buoyed by the impact
of the cost cutting program launched in 2009 and by the fall in the cost of raw
materials and energy, the operating margin for the second half jumped to 6.0% of
sales, versus 0.6% of sales in the first half of 2009.
· High-Performance Materials (HPM) also saw like-for-like trading rally
between the first and second six months of the year. This reflects the upturn in
Asian and Latin American economies, and more generally, the recovery of some HPM
markets linked to industrial output. HPM reported a significant improvement in
its operating margin over the second half of the year, up to 7.8% versus 5.5% in
the first half, boosted by the cost savings achieved and upbeat sales prices
amid falling raw materials and energy costs.
Trading in the Construction Products (CP) Business Sector stabilized over the
second half of 2009 compared with the first half, both for the sector as a whole
and for each of its businesses. The restructuring measures carried out and a
positive price impact in Exterior Solutions throughout the year pushed the
sector's operating margin up to 9.5% in 2009 from 8.9%, with the increase
gathering pace in the second half of the year (9.9% versus 9.1% in the six
months to June 30).
· Owing to a more favorable basis for comparison (particularly in the UK
and US), the like-for-like decline in Interior Solutions sales was smaller in
the second half of 2009 compared to the first (down 14.8% versus 19.5%). The
operating margin crept up slightly in the second half, to 6.9% compared with
6.7% for the previous six months, as the cost savings achieved were partly
offset by the erosion in sales prices in the six months to December 31, 2009.
· Exterior Solutions also saw a relative improvement in sales volumes in
the second half of the year compared to the first six months, chiefly in North
America, Asia and emerging countries. Over the year as a whole and in the six
months to December 31, the sector's profitability also continued to benefit from
a favorable price effect (despite a much higher basis for comparison in the
second half of the year compared with the first six months) and from the
positive impact of the restructuring measures carried out. Consequently, its
operating margin rose significantly over the year, up to 11.8% versus 8.1%, with
the increase picking up pace in the second half (12.5% versus 11.2% in the six
months to June 30).
Building Distribution also saw a slight improvement in trading in the second
half of the year compared with the first, with sales declining only 9.9% after
14.5% in the first half. While the UK and Spain remained the hardest hit by the
economic crisis, their performance now benefits from a weaker comparative period
(second-half 2008). Germany and Scandinavia continued to hold up well in the
second half of the year. Most other European countries and the United States
reported a slight slowdown in the pace of decline compared with the first half.
Upbeat sales margins and especially the restructuring measures carried out
helped drive a significant improvement in the sector's operating margin, up to
3.4% in the second half of the year from 1.4% in the first half.
Packaging continued to turn in a solid performance despite the crisis, with
sales and operating income for the year virtually unchanged from 2008. However,
its like-for-like trading slipped 3.8%, as the positive momentum in sales prices
failed to fully offset the decline in sales volumes in Europe. The operating
margin for the sector improved slightly on 2008, up to 12.7% compared with 12.5%
previously.
2 ) Analysis by geographic area
All of the geographic areas where the Group operates were affected by the
economic crisis throughout 2009. However, there was a relative improvement in
the second half of the year compared with the first half, fueled mainly by the
recovery of certain industrial markets. The pace of the decline in like-for-like
sales slowed and operating margins improved significantly. After a sharp upturn
in activity between the first and second six months of the year, Latin America
and Asia in particular have now put the crisis behind them, with fourth-quarter
trading for these regions on a par with their performance in the three months to
December 31, 2008.
- In France, trading remained sluggish in the second half of the year,
dampened by lackluster activity in construction and industrial markets. However,
the operating margin for the region improved, up to 5.6% in the second half of
2009 from 5.4% in the six months to June 30.
- Other Western European countries benefited from a noticeable uptrend in
the second half of the year, with negative organic growth coming in at 11.4%
versus negative growth of 19.5% in the six months to June 30. This was due
chiefly to second-half trading advances across Germany (particularly in
industry) and Scandinavia compared with the first half, as well as a more
favorable basis for comparison in the UK and Spain. Combined with the impact in
the second half of the year of cost savings achieved since the onset of the
crisis, this performance sparked asignificant improvement in the region's
operating margin, up to 5.6% of sales compared with 3.2% in the first half.
- North Americawas affected by the continuing decline in construction
coupled with the collapse in industrial markets over the first half of the year.
Like-for-like sales retreated 14.5% over the year. The decline was smaller in
the second half due to a slowdown in the decrease in volumes. Over the year as a
whole, the operating margin rose sharply to 8.9% from 5.1% in 2008, on the back
of the restructuring measures carried out and robust sales prices, with the
increase gathering pace in the second half of the year (8.9% versus 8.8% in the
first half).
- Emerging countries and Asia bounced back strongly between the first and
second six months of the year, with sales rebounding 12.9% after trading picked
up in Latin American and Asian economies - where like-for-like growth between
the two periods came in at 18.7%. Eastern European countries are recovering more
slowly, and trading remains very slack. The decline in sales for the region
slowed markedly in the second half compared with the first (down 9.3% versus
13.5%), while the operating margin almost doubled to 8.5%, from 4.5% in the six
months to June 30, 2009.
2009 consolidated financial statements
The Group's 2009 consolidated financial statements, and the financial statements
of the Group's parent company, Compagnie de Saint-Gobain, were approved and
adopted by Saint-Gobain's Board of Directors at its meeting of February 25,
2010. Key consolidated data are summarized below:
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | 2008 | 2009 | % change | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | EUR | EUR | | |
| |millions | millions | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Sales and ancillary revenue | 43,800 | 37,786 | -13.7% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Operating income | 3,649 | 2,216 | -39.3% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Operating depreciation and amortization | 1,511 | 1,514 | +0.2% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| EBITDA (op. inc.+ operating depreciation | 5,160 | 3,730 | -27.7% | |
| and amortization) | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Non-operating costs | (710)¹ | (596) | -16.1% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Capital gains and losses on disposals | (127) | (380) | +199.2% | |
| and exceptional | | | | |
| asset write-downs | | | | |
| | | | | |
+ + + + +------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Dividends received | 3 | 0 | n.m. | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Business income | 2,814 | 1,240 | -55.9% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Net financial expense | (750) | (805) | +7.3% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Income tax | (638) | (196) | -69.3% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Share in net income of associates | 11 | 2 | n.m. | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Income before minority interests | 1,437 | 241 | -83.2% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Minority interests | (59) | (39) | -33.9% | |
+ + + + +------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Recurring net income2 | 1,914 | 617 | -67.8% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Recurring2 earnings per share3 (in EUR) | 5.00 | 1.20 | -76.0% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Net income | 1,378 | 202 | -85.3% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Earnings per share3 (in EUR) | 3.60 | 0.39 | -89.2% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Cash flow from operations4 | 3,524 | 2,303 | -34.6% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Cash flow from operations excluding | 3,487 | 2,268 | -35.0% | |
| capital gains tax5 | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Capital expenditure | 2,149 | 1,249 | -41.9% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Free cash flow (excluding capital gains | 1,338 | 1,019 | -23.8% | |
| tax)5 | | | | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Investments in securities | 2,358 | 204 | -91.3% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
| Net debt | 11,679 | 8,554 | -26.8% | |
+------------------------------------------+----------+--------------+-----------+------------------------------------------+
1 Including the EUR400 million provision for Flat Glass fines.
2 Excluding capital gains and losses on disposals, asset write-downs
and material non-recurring provisions.
3 Calculated based on the number of shares outstanding at December 31
(512,931,016 shares in 2009 versus 382,571,985 in 2008). Based on the weighted
average number of shares outstanding (473,244,410 shares in 2009 versus
374,998,085 in 2008), recurring earnings per share comes out at EUR1.30 (versus
EUR5.10 in 2008), and earnings per share comes out at EUR0.43 (versus EUR3.67 in
2008).
4 Excluding material non-recurring provisions.
5 Excluding the tax effect of capital gains and losses on disposals,
asset write-downs and material non-recurring provisions.
Sales declined 13.7%. The positive 0.9% impact of changes in the scope of
consolidation was offset by a negative 1.4% currency impact, reflecting a
decline in the pound sterling and Brazilian real against the euro. Like-for-like
(comparable Group structure and exchange rates), consolidated sales fell 13.2%:
sales volumes retreated 14.0%, while prices remained upbeat, gaining 0.8%.
Operating income shed 39.3%. The Group's operating margin came in at 5.9% of
sales (8.4% excluding Building Distribution), versus 8.3% (11.0% excluding
Building Distribution) in 2008.
In line with the target set by the Group, second-half operating income
outperformed operating income for the six months to June 30, 2009, up by 38% to
EUR1,286 million from EUR930 million. This essentially reflects the impact of cost
savings achieved by the Group.
As a result, the second-half operating margin was up significantly on the margin
for the first six months of 2009 (6.7% versus 5.0%), but remained slightly down
on the margin for second-half 2008 (6.7% versus 7.6%).
EBITDA (operating income + operating depreciation and amortization) fell 27.7%.
The consolidated EBITDA margin came in at 9.9% of sales (14.1% excluding
Building Distribution), compared with 11.9% of sales (15.8% excluding Building
Distribution) in 2008. The consolidated EBITDA margin in the second half of 2009
was close to its level of second-half 2008 (10.7% versus 11.0%), thanks to the
cost cutting program.
Non-operating costs came in at EUR596 million (EUR310 million in 2008, excluding
EUR400 million in provisions for Flat Glass fines). The rise in non-operating
costs reflects the acceleration in restructuring measures and other adjustments
made in response to the crisis, which represented costs of EUR435 million in 2009
versus EUR190 million in 2008. Accruals to the provision set aside for
asbestos-related litigation involving CertainTeed in the United States totaled
EUR75 million in 2009, as in 2008.
The net balance of capital gains and losses on disposals and exceptional asset
write-downs was a negative EUR380 million, including EUR348 million in exceptional
asset write-downs. This amount includes EUR215 million for the write-down of a
portion of the goodwill relating to the Gypsum business in the United States.
The balance primarily reflects write-downs of assets linked to restructuring
measures and site closures initiated during the period.
Business income tumbled 55.9% after taking into account the items mentioned
above (non-operating costs, capital gains/losses on disposals and exceptional
asset write-downs).
Net financial expense edged up to EUR805 million from EUR750 million in 2008, mainly
reflecting the rise in the interest cost of pensions (up EUR105 million on 2008),
while net borrowing costs were down 12%. The average cost of net debt came out
at 5.5%, on a par with 2008.
Recurring net income (excluding capital gains and losses, exceptional asset
write-downs and material non-recurring provisions) shed 67.8% year-on-year to
EUR617 million. Based on the number of shares outstanding at December 31, 2009
(512,931,016 shares versus 382,571,985 shares at December 31, 2008), recurring
earnings per share came out at EUR1.20, down 76.0% on 2008 (EUR5.00). Recurring net
income almost doubled in the second half of the year compared with the first, up
94% to EUR407 million from EUR210 million, comfortably meeting the target set by the
Group (second-half recurring net income to outperform recurring net income for
the first half).
Net income came in at EUR202 million, down 85.3% year-on-year. Based on the number
of shares outstanding at December 31, 2009 (512,931,016 shares versus
382,571,985 shares at December 31, 2008), earnings per share came out at EUR0.39,
down 89.2% on 2008 (EUR3.60).
Capital expenditure was scaled back 41.9% to EUR1,249 million (versus EUR2,149
million in 2008), and represented 3.3% of sales (4.9% in 2008). The bulk of
these investments (55%) focused on markets linked to energy efficiency (Flat
Glass - including Solar Power - and Construction Products), and on selective
growth projects in emerging countries (e.g., new float-line in Egypt and
plasterboard plant in Abu Dhabi).
Cash flow from operations totaled EUR2,303 million, down 35% on 2008. Before the
tax impact of capital gains and losses on disposals and asset write-downs, cash
flow from operations was EUR2,268 million versus EUR3,487 million in 2008, also down
35%.
Free cash flow (cash flow from operations less capital expenditure) fell 23.3%
and 23.8% before the tax impact of capital gains and losses on disposals and
asset write-downs, but in both cases was ahead of the Group's EUR1 billion target,
at EUR1,054 million and EUR1,019 million, respectively, or 2.8% and 2.7% of sales.
In second-half 2009 alone, free cash flow came out at EUR469 million (before the
tax impact of capital gains and losses on disposals and asset write-downs), up
45% on second-half 2008. This represents the Group's highest second-half free
cash flow in the last five years, and reflects the critical importance of cash
flow management to the Group.
The difference between EBITDA and capital expenditure fell 18% over the year, to
EUR2,481 million compared with EUR3,011 million in 2008, representing 6.6% of sales
(6.9% in 2008). However, this indicator improved significantly in the second
half, compared to both the first half of the year (up 12%), and especially the
second half of 2008 (up 15%).
After six years of continuous improvements, operating working capital
requirements (WCR) were slashed once again, down to 31 days' sales at December
31, 2009 from 38 days' sales at end-2008, representing a cash gain of EUR1.4
billion over the year.
Investments in securities totaled EUR204 million (down 91.3% on 2008), and chiefly
resulted from acquisitions carried out in 2008 but only completed in 2009. Of
this amount, EUR86 million concerned energy efficiency (solar power and thermal
insulation), and EUR70 million related to Asia and emerging countries.
Net debt came in at EUR8.6 billion at December 31, 2009, down EUR3.1 billion, or
26.8%, on December 31, 2008 (EUR11.7 billion). This reflects improvements in
operating working capital requirements and a steep reduction in capital
expenditure, as well as the rights issue carried out at the beginning of the
year. Net debt represents 53% of shareholders' equity, compared with 80% at
December 31, 2008. The net debt to EBITDA ratio came out at 2.3X, stable
compared with end-December 2008.
Update on asbestos claims in the US
Some 4,000 claims were filed against CertainTeed in 2009, compared with 5,000 in
2008. Over the year, 8,000 claims were settled (as in 2008), bringing the total
number of outstanding claims to 64,000 at December 31, 2009, versus 68,000 at
December 31, 2008.
A total of USD 77 million in indemnity payments were made over the 12 months to
December 31, 2009, versus USD 71 million in the year to December 31, 2008.
In light of these trends, an additional provision of EUR75 million was recorded in
2009 (the same euro amount as in 2008), bringing the coverage for CertainTeed's
asbestos-related claims to around USD 500 million at December 31, 2009 versus
USD 502 million at December 31, 2008.
Crisis action plan:all goals of the action plan unveiled at the beginning of the
year and stepped up in July accomplished
Against the backdrop of an unprecedented economic crisis, the Group resolutely
implemented its action plan, which was stepped up in the second half of the
year.
In 2009, Saint-Gobain:
· continued to give clear operating priority to sales prices, which inched
up 0.8% over the year despite the downward trend in inflation. The spread
between sales prices and raw materials and energy costs therefore had a very
positive impact throughout the year, due mainly to the rise in sales prices in
the first half and to the fall in raw materials and energy costs in the six
months to December 31.
· implemented and extended the cost cutting program across all of its
businesses:
- EUR1.1 billion in additional cost savings were unlocked over the year
compared with 2008 (versus an initial goal of EUR600 million, raised to EUR700
million in April and EUR1.1 billion in July). This brings total cost savings
realized in 2008 and 2009 to EUR1.5 billion.
· continued to optimize free cash flow generation, by:
- generating EUR1 billion in free cash flow despite the spike in restructuring
costs, thus meeting the objective set at the beginning of 2009;
- maintaining a tight rein on working capital requirements (WCR), which
fell by EUR1.4 billion (a reduction of 7 days' sales) in 2009;
- slashing capital expenditure, which dropped EUR900 million over the year
compared with an initial target reduction of EUR500 million, increased to EUR700
million in July).
· significantly curbed acquisitions: financial investments in 2009 (EUR204
million) were down 91% on the same year-ago period and are mainly related to the
completion of acquisitions undertaken in 2008 in the energy efficiency segment
(solar power and thermal insulation) as well as in Asia and emerging countries.
· Thanks to these measures, coupled with a successful EUR1.5 billion rights
issue and payment of 65% of the 2008 dividend in stock, the Group has paid down
EUR3.1 billion in net debt and strengthened its balance sheet: the gearing ratio
has been cut to 53% of equity versus 80% at end-December 2008, while the net
debt to EBITDA ratio stabilized at 2.3X.
Outlook and objectives for 2010
After a particularly tough year in 2009, the Group expects the economic
environment to prove somewhat better overall in 2010, but with contrasting
trends across each region.
In Western Europe and North America, the economic mood appears fragile, and
trends are expected to vary widely from one country to the next (improvement in
Anglo-Saxon countries, further declines in Southern Europe). Trading conditions
should remain challenging in construction markets. In contrast, the upturn in
industrial markets observed in the second half of 2009 should continue, thanks
to rebuilding of inventory levels. Lastly, household consumption markets should
hold firm.
The recovery in Asia and emerging countries should gather pace in 2010, spurred
by vigorous growth in Latin America and Asia, and particularly Brazil, China and
India. The upswing in Eastern European countries appears slower and more
subdued.
Against this backdrop, the Group will continue to react and adapt to
developments in its markets in 2010, and will pursue its 2009 action plan
priorities with a highly selective approach. Accordingly, Saint-Gobain will:
- continue to give priority to sales prices.
- continue to implement cost cutting measures, targeting an additional EUR200
million in cost savings, focused on countries and/or businesses with limited
short-term recovery prospects as well as businesses reliant on capital
expenditure.
This will come on top of the full benefits of the 2009 cost cutting measures set
to boost 2010 operating income, with EUR400 million in cost savings in second-half
2009 carried over to first-half 2010. Therefore, total cost savings in 2010 are
expected to exceed 2009 cost savings by EUR600 million, prompting to an upswing in
earnings and operating margins. All in all, the Group's cost base will have been
slashed by EUR2.1 billion in 2010 compared to 2007.
- continue to maintain strict financial discipline.
- finally, thanks to its robust financial structure, Saint-Gobain will be
ideally placed to leverage any growth opportunities in its markets, buoyed by a
highly selective and tempered investment policy (capex and investments in
securities). This policy will be anchored around emerging countries, energy
efficiency and solar power, which should represent more than 80% of capacity
investments by the Group's industrial businesses in 2010.
The Group's targets for 2010 are therefore:
- strong growth in operating income at constant exchange rates (2009 exchange
rates);
- free cash flow of above EUR1 billion;
- a persistently robust financial structure.
In terms of dividend policy, at its meeting of February 25, Compagnie de
Saint-Gobain's Board of Directors decided to recommend to the June 3, 2010
Shareholders' Meeting the same dividend amount as in 2009, i.e. EUR1 per share,
payable in cash or in shares*, at shareholders' discretion. The dividend
represents 83% of recurring EPS and 256% of EPS, and a net dividend yield of
2.6% based on the closing share price at December 31, 2009. The record date set
for June 8 will be followed by a take-up period of 15 days between June 9 and
June 23. The dividends will therefore be paid in cash or in shares on July 2,
2010.
*regarding stock dividends, Compagnie de Saint-Gobain's Board of Directors will
recommend that the Shareholders' Meeting set the issue price for any new shares
by applying a 10% discount to the average opening share price over the 20
trading days preceding the Shareholders' Meeting of June 3, 2010, less the
amount of the dividend.
Forthcoming results announcement
- Sales for the first quarter of 2010: April 22, 2010, after close of trading on
the Paris Bourse.
Click on, or paste the following link into your web browser, to view the
associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/7177H_-2010-2-25.pdf
*
* *
+------------------------------------+-------------------------------+
| Analyst/Investor relations | Press relations |
+------------------------------------+-------------------------------+
| | |
| Florence Triou-Teixeira +33 | Sophie Chevallon +33 1 |
| 1 47 62 45 19 | 47 62 30 48 |
| Etienne Humbert | |
| +33 1 47 62 30 49 | |
| Vivien Dardel | |
| +33 1 47 62 44 29 | |
| | |
+------------------------------------+-------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KKPDDFBKDFBB
Compagnie De Saint-gobain (LSE:COD)
Historical Stock Chart
From Oct 2024 to Nov 2024
Compagnie De Saint-gobain (LSE:COD)
Historical Stock Chart
From Nov 2023 to Nov 2024
