TIDMCOD
RNS Number : 8168U
Compagnie de Saint-Gobain
21 October 2010
October 21, 2010
SALES FOR THE FIRST NINE MONTHS OF 2010:
+5.5% on a reported basis; +1.4% like-for-like
SALES FOR THIRD-QUARTER 2010:
+7.8% on a reported basis; +2.3% like-for-like
Saint-Gobain's consolidated sales for the first nine months of
2010 came in at EUR30,007 million, versus EUR28,435 million for the
same year-ago period, representing a rise of 5.5% on an actual
structure basis.
Currency fluctuations contributed significantly (3.8%) to sales
growth, owing to the appreciation of Scandinavian currencies and
the currencies of the Group's main emerging markets - especially
the Brazilian real - against the euro. On a constant exchange rate
basis*, sales therefore rose 1.7%.
Changes in Group structure had a slightly positive impact,
representing 0.3% of sales growth over the period.
On a like-for-like basis (constant Group structure and exchange
rates), consolidated sales climbed 1.4% over the nine months to
September 30, 2010, including a positive 0.8% volume impact and a
positive 0.6% price effect.
In the third quarter alone, consolidated sales surged 7.8% to
EUR10,478 million from EUR9,720 million in the three months to
September 30, 2009. Organic growth was 2.3% (reflecting a positive
0.7% volume impact and a positive 1.6% price effect). This followed
organic growth of 3.9% in the second quarter, including a positive
3.1% volume impact (1.4% of which was attributable to a higher
number of working days) and a positive 0.8% price effect, and
negative organic growth of 2.4% in the first three months of the
year (reflecting a negative 1.7% volume impact and a negative 0.7%
price effect).
Based on a constant number of working days, this third-quarter
trading performance confirms the upturn in sales volumes observed
in the three months to June 30, 2010, despite a much tougher basis
for comparison (sales volumes fell 12.9% in third-quarter 2009,
versus a decline of 17.1% in the second quarter of that year).
The upward trend in sales prices - which also began in the
second quarter - intensified in the three months to September 30,
2010, reflecting the price increases implemented in all of the
Group's Business Sectors and divisions over the past few
months.
* Exchange rates for the first nine months of 2009.
Along the lines of the second quarter, the Group's organic
growth in the three months to September 30, 2010 continued to be
driven by the emerging countries and Asia region and by the
Innovative Materials Sector, which both reported double-digit
growth. The second-quarter recovery of Group businesses linked to
European construction gathered pace, despite a tougher basis for
comparison. In contrast, businesses related to North American
construction markets were hit by the repercussions of
over-optimistic expectations from distributors, whose restocking
had inflated first-half figures. Household consumption remained
stable over the period.
The table below presents sales trends by Business Sector and
major geographic area over the first nine months of 2010. Figures
for the same period in 2009 are provided for comparison
purposes:
Sales Sales % change % change % change on a
for the for the on an on a like-for-like
first first actual comparable basis
nine nine structure structure
months months basis basis
of 2009 of 2010
(EURm) (EURm)
-----------------
BY BUSINESS 5,755 6,918 +20.2% +19.8% +13.5%
SECTOR 3,358 3,854 +14.8% +14.9% +8.9%
Innovative 2,412 3,078 +27.6% +26.4% +19.8%
Materials (1) 7,987 8,269 +3.5% +2.9% -1.1%
Flat Glass 3,809 3,872 +1.7% +0.7% -2.9%
High-Performance 4,204 4,424 +5.2% +4.8% +0.5%
Materials 12,816 12,892 +0.6% +0.3% -2.2%
Construction 2,620 2,683 +2.4% +2.4% -0.1%
Products (1) (743) (755) -------- --------- --------
Interior 28,435 30,007 +5.5% +5.2% +1.4%
Solutions 8,622 8,520 -1.2% -1.2% -1.2%
Exterior 12,446 12,724 +2.2% +2.1% -0.5%
Solutions 3,808 4,287 +12.6% +11.6% +6.8%
Building 4,672 5,831 +24.8% +23.4% +10.7%
Distribution (1,113) (1,355) -------- -------- --------
Packaging 28,435 30,007 +5.5% +5.2% +1.4%
Internal sales
and other GROUP
BY GEOGRAPHIC
AREA France
Other Western
European
countries North
America Emerging
countries and
Asia/Pacific
Internal sales
GROUP
-------- -------- ---------- ----------- --------------
(1) Including inter-division eliminations.
Like-for-like performance of Business Sectors
-- Innovative Materials once again delivered the Group's best
organic growth, over both the nine months to September 30, 2010
(13.5%) and the third quarter (12.8%). However, the pace of growth
slowed compared to the 17.0% recorded in the second quarter, due to
a tougher basis for comparison. Overall, the Innovative Materials
Sector continued to benefit from a bullish economic climate in
emerging countries and Asia (which accounted for 37% of the
Sector's sales over the first nine months of 2010), as well as from
vigorous industrial markets in both North America and Western
Europe.
- Flat Glass sales rose 8.9% over the nine months to September
30, 2010 and 6.5% over the third quarter. Volume growth over the
last three months continued to be powered by Asia and emerging
countries and to a lesser extent - due chiefly to the tough basis
for comparison - by Automotive Glass in Europe. For the first time
in six quarters, sales prices for the Flat Glass Sector as a whole
increased, up 2.2% in the three months to September 30. This
primarily reflected an increase in commodity prices (float glass),
and the initial impacts of passing on this increase to processed
products. The Construction Glass business in Western Europe
reported a noticeable improvement in France and Germany, but
remained sluggish in most other countries.
- High-Performance Materials (HPM) continued to deliver stellar
growth, with sales surging 19.8% over the first nine months of 2010
and 21.0% in the third quarter. Trading remained upbeat in all
regions, particularly North America and Asia (both reporting
organic growth of around 30% in the third quarter), buoyed by
vigorous industrial output combined with a recovery in the
corporate spending cycle.
-- Sales for the Construction Products (CP) Sector edged down
1.1% over the nine months to September 30, 2010 and 3.1% over the
third quarter. This results from the strong contrasting trends in
the third quarter between Western Europe, emerging countries and
Asia, which continued to improve and/or grow sharply, and North
America, hit by the repercussions of over-optimistic expectations
from distributors, whose restocking had inflated first-half
figures. In contrast, sales prices for both Interior and Exterior
Solutions were up across all regions in the third quarter.
- Like-for-like sales for the Interior Solutions business
slipped 2.9% over the first nine months of the year and 1.4% over
the third quarter. The relative improvement in market conditions
across Western and Eastern Europe begun in the second quarter
continued in the three months to September 30, 2010. However, this
was more than offset by renewed weakness in North American
construction markets.
- Sales for the Exterior Solutions business edged up 0.5% over
the nine months to September 30, 2010, but were down 4.5% over the
third quarter on the back of a sharp drop in sales volumes for
Exterior Products (roofing products in the US) during the summer.
Industrial Mortars benefited over the last three months from the
gradual improvement in market conditions across Western Europe,
while Pipe continued to trade well in its export business.
-- Building Distribution posted a 2.2% drop in sales over the
first nine months, but returned to growth in the third quarter (up
1.4%). This positive trend stems primarily from the gradual
recovery observed in Germany, the UK and Scandinavia as from March,
and to a lesser extent, from the more recent rebound in Eastern
Europe. Sales for France remained virtually stable in the third
quarter after a slight increase in September. Southern Europe
remained in the doldrums.
-- Packaging continued to report robust trading conditions, with
sales virtually stable year-on-year for the nine months to
September 30, 2010 (down 0.1%) as well as for the third quarter (up
0.2%). Both volumes and sales prices remained in line with the
healthy levels of 2009.
Like-for-like analysis by geographic area
Barring North America,all geographic areas delivered organic
growth in the third quarter, confirming the trends observed in the
three months to June 30, 2010. Emerging countries and Asia once
again delivered double-digit growth, while France and other Western
European countries continued to recover, with sales inching up
slightly in the third quarter.
Like-for-like trends for the third quarter show:
- confirmation of the return to growth in France, with a timid
increase in sales (up 0.2%, after a rise of 1.1% in the second
quarter, including a positive 2% impact due to the higher number of
working days), driven chiefly by a robust trading performance from
Innovative Materials;
- stronger growth in other Western European countries (up 1.8%,
following a rise of 1.7% in the second quarter including a positive
1.1% impact due to the higher number of working days). This growth
momentum based on a comparable number of working days was powered
chiefly by the UK, Scandinavia and Germany (together representing
74% of sales in the "Other Western Europe" region). In these
countries, business was especially brisk in Innovative Materials
and, to a lesser extent, in Building Distribution;
- a slowdown in trading in North America (sales down 1.5% after
a rise of 16.3% in the second quarter). Strong growth in Innovative
Materials and vigorous trading in Packaging were more than offset
by the decline in Construction Products sales;
- increasing momentum across emerging countries and Asia (sales
up 12.5% after a rise of 10.4% in the second quarter), reflecting a
return to robust growth in Central and Eastern Europe, and
particularly Poland, which delivered double-digit growth over the
third quarter. Asia and Latin America continued to post vigorous
growth figures in line with second-quarter trends, despite a higher
comparison basis.
Update on asbestos claims in the United States
Some 4,000 claims were filed against CertainTeed in the first
nine months of 2010, compared with 3,000 claims in the same
year-ago period. Taking into account around 13,000 claims settled
or transferred to inactive dockets in the nine-month period (versus
5,000 in the first nine months of 2009), the total number of
outstanding claims fell sharply, to around 55,000 at September 30,
2010 compared with 64,000 at June 30, 2010.
Outlook and objectives for full-year 2010
Overall, the third quarter confirms the gradual improvement in
the Group's main businesses observed in the three months to June
30, 2010, particularly in European Construction.
In the fourth quarter, despite a significantly tougher basis for
comparison (especially for Innovative Materials), the Group should
keep a positive momentum:
- ongoing vigorous growth in Asia and emerging countries, with
Eastern European markets confirming their return to growth;
- consolidation of the relative improvement in Group businesses
linked to construction markets across Western Europe. However,
trends will continue to vary widely from one country to the next
(robust growth in the UK, Scandinavia and Germany; further decline
in Southern Europe; start of a recovery in France). Industrial
markets and household consumption should remain buoyant;
- ongoing upbeat trading conditions in North America for Group
businesses exposed to industrial output and household consumption.
Conditions in the construction market should remain
challenging.
The Group will continue to pursue its action plan priorities in
the fourth quarter, amid a broadly improving but still fragile
economic climate with persistently strong disparities from one
country to the next.
In particular:
- along the lines of the last six months, and following the 0.8%
and 1.6% increases in the second and third quarters, respectively,
the Group will continue to give priority to sales prices,
particularly in order to pass on the higher costs of raw materials
and energy;
- it will complete its additional EUR200 million cost cutting
program, resulting in EUR600 million more cost savings than in
2009;
- it will maintain strict financial discipline.
Accordingly, for full-year 2010, the Group is confirming the
objectives that it raised in July:
- strong growth in operating income at constant exchange rates
(2009 exchange rates), with operating income for second-half 2010
slightly above the first half;
- free cash flow of EUR1.4 billion, despite an increase in
capital expenditure in the second half.
The Group will also seek to maintain a robust financial
structure.
Forthcoming results announcement
- Results for 2010: February 24, 2011, after close of trading on
the Paris Bourse.
Analyst/Investor relations Press relations
Florence Triou-Teixeira +33 1 47 62 Sophie Chevallon +33 1 47 62 30 48
45 19
Etienne Humbert +33 1 47 62 30 49
Vivien Dardel +33 1 47 62 44 29
----------------------------------------
Appendix: 3Q 2010 sales by Business Sector
and major geographic area
------------
Change on
a
Change comparable
on Change on a structure
Q3 Q3 an actual comparable and
2009 2010 structure structure currency
(EURm) (EURm) basis basis basis
By Business
Sector and
division:
------------------ -------- -------- ----------- ------------ -----------
Innovative
Materials (1) 1,953 2,383 +22.0% +21.5% +12.8%
------------------ -------- -------- ----------- ------------ -----------
Flat Glass 1,160 1,317 +13.5% +13.3% +6.5%
------------------ -------- -------- ----------- ------------ -----------
High-Performance
Materials 801 1,068 +33.3% +32.4% +21.0%
------------------ -------- -------- ----------- ------------ -----------
Construction
Products (1) 2,754 2,847 +3.4% +2.5% -3.1%
------------------ -------- -------- ----------- ------------ -----------
Interior
Solutions 1,270 1,337 +5.3% +3.5% -1.4%
------------------ -------- -------- ----------- ------------ -----------
Exterior
Solutions 1,494 1,521 +1.8% +1.8% -4.5%
------------------ -------- -------- ----------- ------------ -----------
Building
Distribution 4,371 4,570 +4.6% +4.4% +1.4%
------------------ -------- -------- ----------- ------------ -----------
Packaging 876 923 +5.4% +5.3% +0.2%
------------------ -------- -------- ----------- ------------ -----------
Internal sales
and misc. -234 -245 n.m. n.m. n.m.
------------------ -------- -------- ----------- ------------ -----------
Group total 9,720 10,478 +7.8% +7.4% +2.3%
------------------ -------- -------- ----------- ------------ -----------
(1) Including
inter-division
eliminations
-------- ----------- ------------ -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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