Saint Gobain Or Regulatory News (COD)

26 Apr 2005 18:00

Compagnie de Saint-Gobain26 April 2005 Press April 26, 2005release FIRST-QUARTER 2005 SALES: UP 5.1% Consolidated sales for the Saint-Gobain Group in the first quarter of 2005,calculated in accordance with International Financial Reporting Standards(IFRS), came in at €7,633 million, compared with €7,261 million for the sameperiod in 2004 (restated in accordance with IFRS), representing a rise of 5.1%on an actual structure basis and of 5.7% at constant exchange rates.(*) On acomparable structure basis, sales contracted by 1.4%, or by 0.7% stripping outthe currency effects,(*) due to the 3.2% fall in sales volumes, which was notwholly offset by the sharp upswing in sales prices (up 2.5% on average over thequarter). These like-for-like sales compare unfavorably with the particularly robustbusiness levels reported in the first quarter of 2004 - which benefited from thelast deliveries under the Abu Dhabi contract in the Pipe Division - and reflectthe adverse impact of the severe winter on Flat Glass and Building Distribution,the Group's businesses the most exposed to the European new construction andrenovation markets. (*) based on average exchange rates for the first quarter of 2004. Sales trends by business sector, division and geographic area are as follows: Q1 2005 Q1 2004 % change on % change on a % change an actual comparable like-for-like sales sales structure structure restated in basis basis (comparable accordance structure and with currency) (in • IFRS millions) (in • millions) BY SECTOR AND DIVISION Building Distribution 3,227* 2,842 +13.5% -1.9% -1.6%High-Performance Materials (1) 1,166 1,139 +2.4% +0.9% +2.6%Ceramics & Plastics and Abrasives 867 846 +2.5% +1.9% +4.0%Reinforcements 305 303 -0.9% -2.9% -2.5%Flat Glass 1,081 1,087 -0.6% -0.8% -1.7%Packaging 901 938 -3.9% -4.2% -2.6%Construction Products (1) 1,394 1,385 +0.7% -0.8% +0.6%Building Materials 581 561 +3.5% +2.4% +5.2%Insulation 496 476 +4.1% +0.9% +1.8%Pipe 322 352 -8.7% -8.6% -8.6% INTERNAL SALES AND OTHER -136 -130 ------ ------ ----- GROUP TOTAL 7,633** 7,261** +5.1% -1.4% -0.7% BY GEOGRAPHIC AREA France 2,679 2,611 +2.6% +0.0% +0.0%Other western European countries 3,179 2,950 +7.8% -5.5% -5.1%North America 1,358 1,333 +1.9% +1.8% +6.4%Emerging countries and Asia-Pacific 870 767 +13.4% +8.9% +5.5% INTERNAL SALES -454 -400 ----- ----- ----- GROUP TOTAL 7,633** 7,261** +5.1% -1.4% -0.7% * of which €339 million relating to Dahl ** including €52 million of side income (€42 million in Q1 2004)(1) including inter-division eliminations. Overall, sales prices have jumped across most of the Group's Sectors andDivisions, on the back of the price rises implemented throughout 2004 and, forsome businesses, in the first quarter of 2005. Sales volumes dropped back inGroup's operations exposed to the construction market in Europe due to thesevere winter weather in Western and Eastern Europe, and to a reduced number ofworking days - ranging from 1 to 3 depending on the country - compared with thesame period in 2004. Sales for the Pipe Division also struggled with anunfavorable basis for comparison, with first-quarter 2004 benefiting from thelast deliveries made under the Abu Dhabi contract. However, business held firmfor Building Materials and Insulation Divisions, buoyed by a vigorousresidential housing market in the US. High-Performance Materials also deliveredconsistent sales, in line with the forecast economic scenario presented at thebeginning of 2005. The Group's performance in non European emerging countriesand Asia remains strong, with an increase of 5.5% in like-for-like sales(constant Group structure and exchange rates). * * * New businesses: Building Distribution experienced a 13.5% surge in sales, thanks to thecontribution of recent acquisitions to first-quarter revenues, in particularthat of Dahl. Like-for-like sales dipped slightly, reflecting an unfavorablebasis for comparison (with first-quarter 2004 organic growth of 7.5% boosted byfavorable climatic conditions and a higher number of working days), and thefar-reaching impact of the severe winter weather throughout Europe in Februaryand March 2005. Germany, Central Europe and the United Kingdom were the worsthit, while France and Spain achieved moderate first-quarter growth, despitefewer working days. High-Performance Materials reported the Group's strongest like-for-like growth,at 2.6%, thanks mainly to an overall rise in sales volumes and prices forCeramics & Abrasives, which are still enjoying the benefits of the upturn inmanufacturing and capital spending, especially in the US. Sales prices in theReinforcements Division advanced for the first time in two years. Historic businesses: Flat Glass sales retreated slightly, reflecting lower volumes on the Europeanbuilding market compared with the first quarter of 2004, due to the severeweather conditions. Float glass prices were on an upward trend. However, pricesfell back slightly in glass processing for the Building industry and inAutomotive Flat Glass in Europe, the latter being due to an unfavorable productmix. Business remained virtually stable on Europe's automotive market, while itnotched up impressive gains in emerging countries. Packaging saw a slight dip in like-for-like sales, with higher sales pricesacross all its activities more than offset by a drop in sales volumes in theEuropean wine market since last Fall. Construction Products (CP) reported like-for-like results on a par withfirst-quarter 2004, despite the strong fall in Pipe sales, down 8.6% on aconstant structure and exchange rate basis, further to the last deliveries madeunder the Abu Dhabi contract at the end of first-quarter 2004. Sales for theBuilding Materials and Insulation Divisions continued to reap the benefits of abuoyant construction market in the US, which was not affected by any majorclimatic impact. The vigorous sales posted in the US mitigated the impact of thesevere winter weather that hit Europe in the first quarter of 2005. * * * The breakdown of sales by geographic area reveals, on a like-for-like basis,robust business levels in France - with the exception of Pipe - and especiallyin the United States. Growth in other western European countries generallyregistered a slight contraction due to climatic conditions. Emerging countries -particularly Asia and Latin America - remained buoyant. * * * Asbestos claims in the United States: Around 6,000 new claims were filed againstCertainTeed in the first quarter of 2005, including only 50 in the State ofMississippi. This slight increase compared with the same period of 2004 (5,000new claims including 700 in Mississippi) reflects an influx of approximately3,000 mass claims not supported by any medical proof in the State of Kentucky.7,000 claims were resolved in the first quarter of 2005, compared with 5,000 inthe first quarter of 2004, and 3,000 claims were transferred in "inactivedockets". Consequently, the number of outstanding claims at March 31, 2005continued to drop, to around 102,000, compared with 106,000 at December 31,2004. The average cost of settlement over the past 12 months stands at USD 3,000 perclaim, on a par with previous period. Driven by the new Chairman of the US Senate Judiciary Committee, further activenegotiations have taken place during the last few weeks concerning the proposedlegislation to set up a National Asbestos Trust Fund. An amended billco-sponsored by three Democrats and three Republicans is expected to be putbefore the Judiciary Committee in the next few days. * * * Outlook: Saint-Gobain first-quarter performance is not representative offull-year trends, and this is particularly the case in 2005. The Group expectssales volumes to pick up over the next few months and therefore confirms itsfull-year target of 6% growth in operating income (calculated in accordance withIFRS) on a constant exchange rate basis. The Group also aims to maintain strongfree cash flow levels. * * * Forthcoming results announcements: - First-half 2005 results: July 28, 2005, after close of trading on the Paris bourse. Investor Relations Department Florence Triou-Teixeira Tel.: +33 1 47 62 45 19Alexandre 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