Saint Gobain Or Regulatory News (COD)

26 Apr 2007 17:20

Compagnie de Saint-Gobain26 April 2007 April 26, 2007 press release FIRST-QUARTER 2007 SALES: - UP 7.2% ON A REPORTED BASIS - UP 8.0% LIKE-FOR-LIKE Consolidated first-quarter sales for the Saint-Gobain Group came in at €10,447million, compared with €9,745 million in the same year-ago period, representinga rise of 7.2% on an actual structure basis and 9.0% at constant exchange rates. The perimeter evolution accounted for 1.0% of sales, with the contribution frombolt-on acquisitions (mainly in the Construction Products and BuildingDistribution sectors) being slightly above that from disposals (chiefly Synflexwithin the High-Performance Materials sector and Calmar within the Packagingsector). The currency effect had a negative -1.8% impact, mainly as a result ofthe decline in the US dollar. Like-for-like consolidated sales climbed 8.0%(*) or €772 million, with a stronggrowth coming both from volumes (+4.3%) and prices (+3.7%). All of the Group's business sectors reported an increase in like-for-like sales. Businesses related to the construction market in Europe delivered robust growth,with strong showings from most of Western Europe, notably Germany, SouthernEurope (Spain and Italy), the Nordic countries and France. Emerging countriescontinued to turn in a very strong performance, especially Eastern Europe, wheresales were boosted by particularly favorable weather conditions. In line with the scenario announced early this year, the slowdown in the US onlyaffected the residential construction sector, and is largely offset by theGroup's performance in all other geographic regions. (*) Based on average exchange rates for first-quarter 2006. Sales trends by business sector and geographic area break down as follows: Q1 2007 sales Q1 2006 % change on % change on a % change an actual comparable like-for-like (in millions sales structure structure of euros) (in millions basis basis of euros) BY BUSINESS SECTOR Flat Glass 1,369 1,218 +12.4% +12.5% +14.2% High-Performance Materials (1) 1,241 1,301 -4.6% -2.7% +1.9%Ceramics & Plastics and Abrasives 916 948 -3.4% -0.7% +4.4%Reinforcements 328 356 -7.9% -7.8% -4.4% Construction Products (1) 2,720 2,630 +3.4% +2.0% +4.7%Building Materials 586 635 -7.7% -8.4% -3.3%Insulation 685 600 +14.3% +8.0% +10.0%Gypsum 1,000 956 +4.6% +6.0% +8.4%Pipe 461 446 +3.4% +1.4% +2.2% Building Distribution 4,424 3,810 +16.1% +11.3% +11.0% Packaging 955 1,011 -5.6% +4.0% +7.2% Internal sales and other (262) (225) -------- ------ ----- GROUP 10,447 9,745 +7.2% +6.2% +8.0% BY GEOGRAPHIC AREA France 3,277 3,024 +8.4% +7.4% +7.4%Other western European countries 4,725 4,113 +14.9% +11.6% +11.0%North America 1,473 1,819 -19.0% -15.1% -7.3%Emerging countries and Asia-Pacific 1,533 1,307 +17.3% +14.5% +19.6% Internal sales (561) (519) ----- ----- ----- GROUP 10,447 9,745 +7.2% +6.2% +8.0% (1) Including inter-division eliminations. Performance of Group business sectors The Flat Glass sector delivered the Group's best organic growth performance, at+14.2% on a like-for-like basis. This reflects a sharp volume increase in theConstruction market in emerging countries and Europe, which is also feeling thepositive effects of a surge in demand for energy efficient glass. The veryfavorable price trends that commenced on European building markets mid-2006continued. The automotive flat glass business also performed well across theglobe. Within the High-Performance Materials sector, the Ceramics, Plastics andAbrasives divisions reported healthy organic growth of +4.4% while the sales ofReinforcements business was down. Overall, the High-Performance Materials sectorrecorded a moderate +1.9% growth in like-for-like sales. The Construction Products (CP) sector posted +4.7% like-for-like growth, Europeand emerging countries more than offsetting the downturn in housing starts inthe US. - Gypsum and Insulation businesses benefited from favorable regulatory and fiscal measures promoting home improvement (in particular measures designed to encourage energy efficiency), reporting respectively strong internal growth of +8.4 % and +10% amid a vigorous trading environment in Europe and emerging countries. - In the Building Materials division (down -3.3% like-for-like), the exterior products business in the United States was hit by the overall slowdown in the housing market, which was not fully offset by the very robust performance achieved by the mortars business in Europe and emerging countries. - Pipe registered a solid rise in business across its principal geographic segments. Building Distribution delivered the Group's strongest growth on a reportedbasis, at +16.1% overall (around +5% of which was due to acquisitions and +11%to organic growth). All countries, but particularly Germany, central Europe,Scandinavia and France, contributed to this vigorous performance, on the back offavorable weather conditions at the start of the year. Growth on the UK marketwas more moderate. Organic growth for the Packaging business came in at +7.2% thanks to a strongprice effect and buoyant sales volumes in Europe, while Latin America and NorthAmerica businesses advanced at a more moderate pace. * * * Sales analysis by geographic area The breakdown of sales by geographic area is in line with the trends observed insecond-half 2006. Based on constant Group structure and exchange rates: - Sales in France (29.8% of total Group turnover in the first quarter of 2007) continued to perform well, up +7.4% like-for-like. Sales in other western European countries (42.9% of total Group Turnover) also picked up pace (average rise of +11% like-for-like), substantiating the vigor of the German economy and the continued growth in Southern Europe. - North America (13.4% of total Group turnover) reported a marked decline in sales (like-for-like down -7.3%) on the back of a significant fall-off in housing starts. This was partially offset by the strength of other sectors of the US economy, especially non-residential construction and industrial investment. - Emerging countries (13.9% of total Group turnover) reported vigorous growth of +19.6% like-for-like. Eastern Europe turned in the most noteworthy performance of the first quarter, its robust structural growth having being boosted by a mild winter. Latin America and Asia also performed well. * * * Update on asbestos claims in the United States New claims filed against CertainTeed during the first quarter 2007 wereapproximately 2,000, which is equivalent to the number of claims which weresettled during the same period. As a consequence, approximately 76,000 claimsremained outstanding at the end of March 2007, similar to the situation at theend of December 2006. At end of March 2007, the average cost of claims settledin the past twelve months or in the process of being settled came to around USD3,200, slightly increasing compared to December 2006 (USD 3,000). * * * Outlook The first three months of the year have confirmed the trend observed insecond-half 2006 and the scenario envisaged at the end of January for 2007,namely a strong trading environment in Europe, which is more than offsetting thehousing slowdown in the United States. The Group expects this trend to continue in the coming months and in thisrespect confirms its objectives* for the year: - a robust increase in operating income at constant exchange rates; - and a double-digit growth in net income excluding capital gains and losses. * These objectives are based on the divestiture of Saint-Gobain Desjonqueres(done on March 29, 2007) and on the assumption that the Reinforcements &Composites business will be deconsolidated in 2007, but do not reflect any othermajor scope adjustments that may occur in 2007. * * * Forthcoming results announcements: - final results for first-half 2007: July 26, 2007, 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