3rd Quarter Results
October 27 2004 - 3:00AM
UK Regulatory
RNS Number:5107E
Compagnie de Saint-Gobain
26 October 2004
October 26, 2004.
Press release
October 26, 2004.
SALES FOR THE FIRST NINE MONTHS OF 2004: UP 7.8%
UP 10.0% AT CONSTANT EXCHANGE RATES
UP 5.1% LIKE-FOR-LIKE
Consolidated sales for the Saint-Gobain Group came to Euro23,969 million for the
first nine months of 2004, representing an increase of 7.8%. At constant
exchange rates (based on average rates for the first nine months of 2003), sales
were up 10.0% on an actual structure basis* and 5.1% on a comparable structure
basis. Volumes expanded by 4.0%, while prices increased by 1.1%.
In the third quarter alone, like-for-like sales rose 4.0% (including a 2.6%
volume effect and a 1.4% price impact) compared with the third quarter of 2003,
which proved to be a high basis for comparison.
In line with the economic scenario anticipated at the end of July, and the
trends observed in the first half of the year, the new businesses
(High-Performance Materials and Building Distribution), as well as emerging
markets in general, continued to drive the Group's overall growth in the third
quarter and during the first nine months of 2004.
* up 7.2% excluding Dahl
Sales trends by business sector, division and geographic area are as follows:
2004 sales 2003 sales Change Change based Change based on
9 months 9 months based on on comparable
(in Euro (in Euro actual comparable structure and
millions) millions) structure structure in local
euros currencies
SECTORS & DIVISIONS
GLASS (1) 8,590 8,460 +1.5% +0.6% +3.7%
Flat Glass 3,269 3,188 +2.5% +1.7% +3.6%
Insulation and Reinforcements 2,435 2,326 +4.7% +3.0% +6.7%
Containers 2,895 2,954 -2.0% -2.4% +1.4%
HIGH-PERFORMANCE 2,629 2,447 +7.4% +5.6% +11.3%
MATERIALS (1) Ce Ceramics & Plastics 2,629 2,447 +7.4% +5.6% +11.3%
and Abrasives 12,990 11,548 +12.5% +4.0% +4.9%
HOUSING PRODUCTS (1) 2,022 2,228* -9.2% +2.6% +9.3%
Building Materials 10,098 8,400 +20.2% +6.0% +5.6%
Building Distribution 1,056 1,141 -7.4% -8.1% -7.9%
Pipe (240) (219) ---- ---- ----
INTERNAL SALES AND MISC. 23,969 22,236 +7.8% +2.8% +5.1%
GROUP
GEOGRAPHIC AREAS 8,028 7,415 +8.3% +4.9% +4.9%
France 10,204 9,196 +11.0% +2.1% +1.5%
Other western European countries 4,393 4,410 - 0.4% +0.1% +10.3%
North America 2,596 2,283 +13.7% +9.2% +15.1%
Emerging countries and Asia-Pacific (1,252) (1,068) ---- ---- ----
INTERNAL SALES 23,969 22,236 +7.8% +2.8% +5.1%
GROUP
(1) including inter-division eliminations
* including Euro268 million from companies divested during 2003.
With the exception of two divisions - Pipe, which saw the completion of its
Abu-Dhabi contract in March, and Containers, which remained stable, - all of the
Group's divisions reported increased like-for-like sales for third-quarter 2004
and the first nine months of the year. Sales of Ceramics & Plastics, Abrasives
and Reinforcements picked up pace in the third quarter, on the back of an upturn
in production and capital spending, particularly in North America and Asia.
The Glass Sector achieved satisfactory organic growth for the first nine months
of 2004, with like-for-like sales up 3.7%, in line with first-half growth of
4.0%. In third-quarter 2004, Reinforcements pushed up its sales prices compared
with the levels achieved in the second quarter of the year. Demand in Insulation
held firm, while Containers reported moderate growth due to a high basis for
comparison provided by third-quarter 2003 performance. Flat Glass continued on
the growth track, particularly in emerging countries and the European automobile
market, but continued to be hit by the downward pressure on sales prices in the
European construction market.
The High-Performance Materials Sector reported the Group's strongest
like-for-like growth for the 9-month period (up to 11.3%). The recovery in the
manufacturing industry and capital spending, which began in the first half of
the year, picked up pace over the last three months.
Like-for-like sales for the Housing Products Sector continued to be in line with
the Group average, despite the sharp contraction reported by Pipe since the last
delivery under the Abu Dhabi contract, at the end of first quarter 2004.
Building Materials - which is smaller in size since the sale of Terreal and
Certain Teed Ventilation in 2003 - continued to benefit from the buoyant
residential construction market in the United States and to a lesser extent, in
Europe. Meanwhile, Building Distribution pursued its expansion drive, both
though organic growth (5.6%) and acquisitions (including the consolidation of
the company Dahl International from May 1, 2004).
By geographic area, like-for-like sales remained robust in France (despite the
contraction in sales reported by the Pipe Division) and particularly in the
United States. Other western European countries, also affected by the fall-back
in Pipe sales, posted moderate growth. Demand remained high in emerging
countries, which continue to drive growth for the Group as a whole.
**************
Asbestos claims in the United States: some 5,000 new claims were filed against
Certain Teed during third-quarter 2004 (less than 200 in the State of
Mississippi), representing practically the same number of claims as were filed
in each of the first two quarters of the year. The number of new claims filed
during the first nine months of 2004 came to 14,000, almost four times less than
the 54,000 new claims in the comparable period of 2003.
At the same time, 6,000 claims were resolved during third-quarter 2004, on a par
with the second quarter of the year. In the first nine months of 2004, 17,000
claims were resolved, compared with 40,000 in the comparable period of 2003.
The number of outstanding claims at September 30, 2004 (approximately 105,000)
was slightly lower than at end-June 2004.
The average cost of claims settled over the last twelve months has risen to US$
3,100 per claim, in line with the trend observed since the beginning of the
year. This increase was due to the lower number of non-serious cases as a
proportion of overall claims settled and claims currently in the process of
being settled.
On September 15, 2004, the Democratic Leader in the United States Senate agreed
with the Republican Majority Leader that the compensation fund for asbestos
victims should amount to US$ 140 billion. The Democrats, however, included in
their response a counter proposal setting out, among other things, a new method
for processing outstanding claims and higher claims values for certain disease
categories. Discussions are still going on, but negotiations regarding the bill
are unlikely to resume until November, as the Senate is in recess until after
the US presidential elections.
**************
Outlook and targets: For full-year 2004, the Group confirms its target of 7%
growth in operating income at constant exchange rates (based on average exchange
rates for 2003), and excluding the positive impact of the Dahl acquisition.
**************
Next results announcement:
>> Estimated 2004 results: Thursday January 27, 2005, 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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