1st Quarter Results
April 27 2004 - 1:45PM
UK Regulatory
RNS Number:0681Y
Compagnie de Saint-Gobain
27 April 2004
April 27, 2004
press release
FIRST QUARTER 2004 SALES:
UP 5.1% ON A LIKE-FOR-LIKE BASIS
Consolidated sales of the Saint-Gobain Group for the first quarter of 2004
amounted to Euro7,233 million, compared with Euro6,986 million for the same period in
2003, representing an increase of 3.5% on an actual structure basis, and 1.3%
based on a comparable structure. At constant exchange rates(*), sales were up
7.4% on an actual structure basis and 5.1% based on a comparable structure. This
increase was achieved thanks to a significant 5.1% rise in sales volumes in most
of the Group's geographic areas, while sales prices held firm.
This performance demonstrates Saint-Gobain's ability to reap the benefits of the
economic recovery currently taking hold, particularly in industrial production
and capital spending.
(*) based on average exchange rates for the first quarter of 2003.
Sales trends by sector, division and geographic area are as follows:
Q1 2004 Q1 2003 Change on an Change on a Change on a
sales sales actual comparable comparable
structure structure basis structure and
basis currency basis
(in Euro millions)(in Euro millions) (in Euro)
BY SECTOR AND DIVISION
GLASS (1) 2,764 2,777 -0.5% -1.2% +3.3%
Flat Glass 1,079 1,069 +0.9% +0.2% +2.8%
Insulation & Reinforcements 772 774 -0.3% -1.4% +4.3%
Containers 916 936 -2.1% -2.6% +3.0%
HIGH-PERFORMANCE MATERIALS (1) 845 835 +1.2% -1.4% +6.8%
Ceramics & Plastics and Abrasives 845 835 +1.2% -1.4% +6.8%
HOUSING PRODUCTS (1) 3,711 3,448 +7.6% +4.3% +6.5%
Building Materials 562 671 -16.2% -2.8% +6.8%
Building Materials Distribution 2,846 2,486 +14.5% +6.8% +7.5%
Pipe 358 358 0.0% -0.8% -0.1%
INTERNAL SALES (108) (74) ------ ------ -----
GROUP TOTAL 7,233 6,986 +3.5% +1.3% +5.1%
BY GEOGRAPHIC AREA
France 2,601 2,401 +8.3% +5.1% +5.1%
Other Western European countries 2,936 2,827 +3.9% +1.8% +2.4%
North America 1,332 1,452 -8.3% -7.4% +7.6%
Emerging countries and the Asia-Pacific 763 655 +16.6% +9.9% +16.3%
region
INTERNAL SALES (398) (348) ----- ----- -----
GROUP TOTAL 7,233 6,986 +3.5% +1.3% +5.1%
(1) Including inter-division eliminations.
Except for the Pipe Division, whose figures were on a par with the prior year,
sales growth was reported across the board in the first quarter of 2004.
Particularly strong performances were achieved by the Group's new businesses
(Building Materials Distribution, Ceramics & Plastics and Abrasives), which are
the main growth drivers, as anticipated at the beginning of the year.
The Glass Sector posted moderate like-for-like sales growth. Business was brisk
for Insulation, Containers and Flat Glass for the automotive industry, in their
principal markets. However, Flat Glass for the European construction industry
and Reinforcements were once again hit by downward pressure on sales prices,
despite a significant upturn in sales volumes.
High-Performance Materials reported the Group's strongest like-for-like growth
(+6.8%). The recovery in the manufacturing industry and capital spending which
began at the end of 2003 in the United States, continued during the first
quarter of the year and picked up pace. Based on the Sector's current order
books this favorable trend should be sustained.
The Housing Products Sector also achieved very strong sales. Building Materials
continued to benefit from the buoyant residential construction market in the
United States, while the Building Materials Distribution Division recorded the
Group's highest organic growth rate (+7.5%), thanks to a significant increase in
sales volumes for all of its brands, including in Germany. Pipe was the only
Division where like-for-like sales did not increase, reflecting the completion
at the end of March of deliveries under the Abu Dhabi contract.
By geographic area, strong like-for-like growth was achieved in France and the
United States. A moderate upturn was felt in other Western European countries,
with a slight recovery observed in Germany. Markets remained extremely buoyant
in emerging countries - particularly in Asia and Eastern Europe - and the Group
achieved double digit growth in these regions.
Asbestos claims in the United States: some 5,000 new claims were filed against
Certain Teed during first-quarter 2004, including 700 in the State of
Mississippi, representing 4 four times less than the number of new claims in the
same period of 2003 (22,000, including 8,000 in Mississippi). At the same time,
5,000 claims were resolved during the period. Therefore, at March 31, 2004 some
108,000 claims were outstanding, unchanged from the December 31, 2003 figure.
The average cost of claims settled over the last twelve months was US$ 2,500 per
claim, up, as expected, on the 2003 average figure of US$ 2,100.
In addition, the Republican leadership of the United States Senate recently
attempted to move forward a debate on proposed legislation to create a national
asbestos trust fund. As expected in the current political climate, on April 22,
2004, the 60 votes required to proceed were not obtained. A mediation process
has been launched at the request of the Senate's Republican and Democrat
leaders, in an attempt to seek an agreement among the various parties involved,
particularly relating to the size of the fund.
Outlook
In the first quarter of 2004, the Group posted satisfactory sales growth despite
the negative impact of currency effects.
For the full year, Saint-Gobain confirms its objective of achieving further
growth - of 4% to 5% - in operating income at constant exchange rates, and of
maintaining strong free cash flow levels.
Next results announcement:
- First-half 2004 results: July 29, 2004, after close of trading on the
Paris Bourse.
Investor Relations Department
Mrs Florence TRIOU-TEIXEIRA Tel. : +33 1 47 62 45 19
Mr. 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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