TIDMCOD
RNS Number : 8264F
Compagnie de Saint-Gobain
29 April 2014
Paris, April 29, 2014
First-quarter 2014 sales
Sales at EUR9,874 million
powered by good organic growth
-- Organic growth at 6.8%, driven partly by favorable weather conditions in Europe
-- Sales prices remain upbeat, gaining 1.2%
-- Negative currency impact of 3.7%
-- Ongoing gradual improvement in our Western European markets
except in France; continued vigorous momentum in Asia and emerging
countries
-- Markets in North America robust, but affected by harsh winter weather
Pierre-André de Chalendar, Chairman and Chief Executive Officer
of Saint-Gobain, said:
"Good first-quarter trading reflects favorable trends in our
markets as well as the positive weather impact in Europe. In view
of this and thanks to the roll-out of our action plan priorities,
we can confirm our objective of a clear like-for-like improvement
in operating income."
Consolidated sales came in at EUR9,874 million, up 2.6%, or 6.8%
like-for-like (constant exchange rates and Group structure).
Exchange rates continued to have a negative impact (-3.7%),
especially in industrial Business Sectors, due to the depreciation
of certain currencies (mainly in Latin America, the US and
Scandinavia).
Changes in Group structure had a slightly negative impact of
-0.5%.
Volumes climbed 5.6%, buoyed by upward trends on our markets and
a very favorable basis for comparison in terms of weather
conditions in Europe. Working days had a slightly positive impact
of around 0.7%.
Thanks to the Group's priority focus on sales prices, the price
effect was a positive 1.2%, including 1.8% for industrial Business
Sectors amid low raw material and energy cost inflation.
EURm Sales Sales Change Change Like-for-like Sales
Q1 2013 Q1 2014 on an actual on a comparable change Q1 2013
Restated* structure structure Published
basis basis
----------- --------- -------------- ----------------- -------------- -----------
BUSINESS SECTOR
Innovative Materials(1) 2,175 2,175 0.0% (0.5%) 4.9% 2,211
Flat Glass 1,163 1,159 (0.3%) (0.3%) 4.5% 1,200
High-Performance Materials 1,014 1,018 0.4% (0.6%) 5.4% 1,014
Construction Products(1) 2,736 2,757 0.8% 2.1% 7.4% 2,754
Interior Solutions 1,367 1,452 6.2% 6.2% 10.9% 1,367
Exterior Solutions 1,381 1,318 (4.6%) (2.1%) 3.9% 1,399
Building Distribution 4,110 4,361 6.1% 6.6% 8.1% 4,110
Packaging (Verallia)(2) 835 822 (1.6%) (1.6%) 2.2% 835
Internal sales and misc. (234) (241) --- --- --- (236)
GEOGRAPHIC AREA
France 2,790 2,872 2.9% 2.8% 2.8% 2,803
Other Western European
countries 3,798 4,150 9.3% 9.2% 10.2% 3,804
North America 1,552 1,436 (7.5%) (5.4%) (1.4%) 1,556
Emerging countries and
Asia 1,908 1,905 (0.2%) 0.6% 14.5% 1,943
Internal sales (426) (489) --- --- --- (432)
---------------------------- ----------- --------- -------------- ----------------- -------------- -----------
GROUP 9,622 9,874 2.6% 3.1% 6.8% 9,674
---------------------------- ----------- --------- -------------- ----------------- -------------- -----------
* 2013 figures restated to reflect the impacts of the amended
IFRS 11.
(1) Including inter-division eliminations.
(2) Including Verallia North America, which will be
deconsolidated with effect from April 11, 2014.
Like-for-like performance of Group Business Sectors
Innovative Materials sales advanced 4.9%.
- Flat Glass confirmed its recovery (up 4.5%), driven by brisk
automotive markets in all regions. The construction market in
Western Europe improved slightly in volume terms, although sales
prices do not yet reflect the increases currently being
implemented. Asia and emerging countries continued to enjoy very
strong momentum.
- High-Performance Materials (HPM) delivered 5.4% organic growth
powered by Asia and emerging countries as well as Western Europe,
across all of its businesses. North America was down slightly due
to the decline in Ceramics and the negative impact of harsh winter
weather.
Construction Products (CP) sales rose 7.4%, buoyed by Europe and
by Asia and emerging countries.
- Interior Solutions reported a 10.9% rise in sales and had a
very good quarter in all of its regions. The US remained on an
upward trend in terms of both prices (particularly for
plasterboard) and volumes, spurred by good momentum in construction
markets. Asia and emerging countries put in another very good
performance. Volumes were up in all Western European countries,
aided by favorable weather conditions.
- Exterior Solutionsposted a 3.9% increase in sales, bolstered
by strong growth in Industrial Mortars in all of its regions and
healthy trading in Pipe. US Exterior Products reported gains in
March, after a very tough start to the year caused by the harsh
winter weather.
Building Distribution sales rallied strongly, up 8.1%, boosted
by much better weather than in first-quarter 2013 and by the
gradual improvement in most construction markets in Europe. The UK,
Germany, Nordic countries and Eastern Europe delivered a strong
first-quarter performance. France was up only slightly against weak
first-quarter 2013 comparatives. Solid renovation activity offset
the sharp contraction in new-builds. Brazil contributed to the
Business Sector's good growth.
Packaging (Verallia) delivered 2.2% organic growth, driven
mainly by volumes both in Europe and in Latin America. Sales prices
are upbeat in Latin America in a highly inflationary environment
but fell slightly in some European countries due to competitive
pressure. The Group's North American business - whose sale was
finalized on April 11, 2014 and which will be deconsolidated with
effect from that date - performed in line with first-quarter
2013.
Like-for-like analysis by geographic area
In accordance with the scenario described in February:
- In France (up 2.8%), sales were lifted by improved renovation
activity and by the favorable weather impact, but continued to
suffer from a contraction in the market for new-builds.
- Inother Western European countries, sales climbed 10.2%, with
the rise amplified by better weather conditions. All countries
reported gains, particularly Germany, the UK and to a lesser extent
Scandinavia.
- North America reported a 1.4% fall in sales. Harsh winter
weather hit Exterior Products and certain industrial businesses
particularly hard. Interior Solutions continued to report vigorous
trading in a buoyant market.
- Asia and emerging countries posted 14.5% sales growth and
continued to deliver an excellent performance in all regions,
despite fears of a slowdown in certain countries.
Update on asbestos claims in the US and on the automotive glass
fine
Some 1,000 claims were filed against CertainTeed in the first
quarter of 2014, on a par with the same period in 2013. At the same
time, around 1,000 claims were settled, also in line with 2013. As
a result, the total number of outstanding claims is stable compared
with end-2013, at 43,000.
Further to the decision of the General Court of the European
Union to reduce the automotive glass fine from EUR880 million to
EUR715 million, the Group decided it would pay the fine, leading to
a write-back of the provision for EUR207 million.
2014 outlook
The first quarter confirms that the uptrends first seen in the
second half of 2013 should continue throughout 2014:
- InWestern Europe, after a first quarter boosted by very
favorable weather conditions, our markets should continue to
improve gradually, led by growth in the UK and Germany.
- InNorth America, after a first-quarter performance affected by
harsh winter weather, the Group will benefit from good momentum in
the construction market and improved industrial markets.
- In Asia and emerging countries, our businesses should deliver solid organic growth.
- Lastly, household consumption markets, more challenging in
Southern Europe, could continue to be affected by competitive
pressure on prices.
The Group is therefore confirming its action plan priorities for
the year:
- increasing sales prices amid low raw material and energy cost inflation;
- pursuing cost cutting measures in order to unlock additional
savings of EUR450 million (calculated on the 2013 cost base);
- stepping up capital expenditure to around EUR1,500 million,
the priority being growth capex outside Western Europe (around
EUR550 million) and businesses with reduced capital intensity;
- maintaining its commitment to invest in R&D in order to
support its strategy of differentiation and the roll-out of high
value-added solutions.
Thanks to the roll-out of these measures and to the better
trends in our various markets observed as from the second half of
2013, we continue to expect a clear improvement in operating income
on a comparable structure and currency basis.
Financial calendar
First-half 2014 results: July 30, 2014, after close of trading
on the Paris Bourse.
Analyst/Investor relations Press relations
------------------------------------- ----------------------------------------
+33 1 47 62 +33 1 47 62 30
32 52 48
Gaetano Terrasini +33 1 47 62 Sophie Chevallon +33 1 47 62 43
Vivien Dardel 44 29 Susanne Trabitzsch 25
--------------------- -------------- --------------------- -----------------
This information is provided by RNS
The company news service from the London Stock Exchange
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