Saint Gobain Or Regulatory News (COD)

24 Oct 2006 17:17

Compagnie de Saint-Gobain24 October 2006 October 24, 2006. Press release SALES FOR THE FIRST NINE MONTHS OF 2006: • UP 20.1% ON A REPORTED BASIS • UP 6.3% LIKE-FOR-LIKE The Saint-Gobain Group delivered consolidated sales of €30,925 million duringthe first nine months of 2006, an increase of 20.1% on a reported basis and of19.1% at constant exchange rates (based on average exchange rates for the firstnine months of 2005). The contribution from acquisitions, net of disposals, accounted for an increaseof 12.8%. The Gypsum division (formerly BPB) posted a 13.3% rise in sales overthe nine months period, to €2,931 million. Organic growth for the first nine month came in at 6.3% on a like-for-like basis(comparable Group structure and exchange rates), fuelled by continuous salesprice rises (up 3.3%) and on-going satisfactory growth in volumes (up 3.0%). Therobust trading performance recorded in the first six months of the year (up 6.3%for first-half 2006) continued throughout the third quarter (up 6.2%), enablingthe Group to maintain organic growth for the nine months at the same level asfor first-half 2006. Each of the Group's five business sectors reported a notable advance inlike-for-like sales over the first nine months of 2006. Businesses related to construction markets, in particular, continued to postoverall healthy growth figures, boosted by the impact of new Europeanregulations on energy efficiency in the building industry and by the upswing inGermany. In Europe, vigorous construction markets (new residential andcommercial construction and renovation spending) balanced the impact of theslowdown in US housing starts, which broadly evolved in line with the Group'seconomic assumptions for full-year 2006. Businesses exposed to household consumption and industrial production marketsremain on the growth track. Sales trends by business sector, division and geographic area are as follows: Sales for Sales for Change Change based Change based the first the first based on on on nine months nine months actual comparable comparable of 2006 of 2005 structure structure structure and exchange rates (in • (in • (%) (%) (%) millions) millions)SECTORS & DIVISIONS Building Distribution sector 12,883 11,370 13.3% 6.0% 5.7%High-Performance Materials sector (1) 3,745 3,623 3.4% 5.6% 3.8% Ceramics & Plastics and Abrasives 2,706 2,668 1.4% 4.9% 3.3% Reinforcements 1,050 969 8.4% 6.9% 5.0%Flat Glass sector 3,716 3,460 7.4% 7.5% 5.7%Packaging sector 3,094 2,990 3.5% 4.2% 2.9%Construction Products sector (1) 8,198 4,740 72.9% 11.6% 10.3% Gypsum 2,931 n.a. n.a. 13.3% 12.2% Building Materials 2,087 2,082 0.2% 6.1% 4.0% Insulation 1,872 1,612 16.1% 13.1% 12.2% Pipe 1,333 1,060 25.8% 15.2% 14.1%Internal sales and misc. (711) (440) ------ ------ -----GROUP 30,925** 25,743** 20.1% 7.3% 6.3%*GEOGRAPHIC AREASFrance 9,296 8,524 9.1% 5.3% 5.3%Other western European countries 13,604 11,025 23.4% 5.7% 5.8%North America 5,309 4,430 19.8% 7.8% 5.7%Emerging countries and Asia-Pacific 4,316 3,168 36.2% 17.6% 11.9%Internal sales and misc. (1,600) (1,404) ----- ----- -----GROUP 30,925** 25,743** 20.1% 7.3% 6.3%* * 5.8% excluding BPB's organic growth ** including ancillary revenue of €197 million for the first nine months of2006, compared with €181 million for the year-earlier period (1) including inter-division eliminations The Building Distribution sector posted a sharp increase in sales on a reportedbasis (up 13.3% over the first nine months and up 11.9% in the third quarter),including contributions from recent acquisitions, particularly Sanitas-Troeschand Optimera, which were consolidated with effect from March 1, 2005 and August1, 2005, respectively. Organic growth for the nine-month period (5.7%) picked uppace compared with the first six months of 2006, thanks to a very good thirdquarter (+6.3% organic growth), buoyed by brisk business conditions in Frenchand Scandinavian markets, the upswing in the German market and a more favorabletrading environment in the UK. High-Performance Materials generated sustained like-for-like sales growth (3.8%over the nine months to September 30, 2006 and 4.3% over the third quarter).Sales reported by the Ceramics, Plastics and Abrasives businesses expanded 3.3%over the first nine months (with a high basis for comparison in 2005), whileReinforcement sales climbed 5%, chiefly in terms of volumes. The Flat Glass sector notched up a significant rise in sales at comparablestructure and exchange rates (up 5.7% over the first nine months of 2006, and up8.8% over the third quarter). This performance was bolstered by strongconstruction markets which, in the third quarter, saw significant price rises inEurope, coupled with robust business levels in Europe and in most emergingcountries. The automotive market continued to present a mixed overall picture. Like-for-like Packaging sales inched up a moderate 2.9% over the nine-monthperiod, and 2.0% in the third quarter, reflecting the sustained organic growthof the Flasks business (4.8% over the nine-month period) and the benefits reapedby the Bottles & Jars businesses from price increases in both Europe and the US. The Construction Products (CP) sector continued to register very significantlike-for-like growth (10.3% over the nine-month period and 7.6% in the thirdquarter). The interior building solutions businesses (Gypsum and Insulation)reported very strong overall organic growth figures (12.2% over the nine-monthperiod), powered by vigorous residential and commercial construction markets,measures designed to promote energy efficiency, and good price levels. Thestrong growth momentum experienced by the Pipe division continued apace, comingin at 14.1%, on the back of robust sales volumes and a healthy order book bothin Europe and for exports. The Building Materials division posted furtherorganic growth gains in Europe through the Industrial Mortars business, whileon-going sharp increases in sales prices in the US since the beginning of theyear more than offset the fall-off in volumes observed on the US market inrecent months. By geographic area, like-for-like growth remained buoyant in France (5.3% overthe nine first months) and accelerated in other western European countries (5.8%over the nine-month period, of which 6.2% in the third quarter). The upswing inthe German economy - which currently accounts for 10.7% of Group sales - tookhold and picked up pace, with organic growth of 5.3% over the nine-month period,and of 8.6% in the third quarter. Growth slowed in the United States (16.0% ofGroup sales), as anticipated (5.7% over the first nine months of 2006 and 2.2%in the third quarter). Emerging countries and Asia-Pacific put in another strong performance,particularly Eastern Europe and Latin America, with aggregate organic growth of11.9% over the nine months to September 30, 2006, and of 14% in the thirdquarter. ************** Update on asbestos claims in the United States: Some 2,000 new claims were filedagainst CertainTeed in the third quarter of 2006. Over the first nine months ofthe year, approximately 6,000 new claims were filed, compared with 12,000 in thesame period of last year Since the beginning of the year, 10,000 claims havebeen resolved, including 2,000 in the third quarter. The number of claimsoutstanding at September 30, 2006 remained stable in relation to end-June 2006,at 86,000. The average cost per claim settled in the last 12 months or in theprocess of settlement came in at USD 2,800, above the end-June 2006 figure dueto fewer mass actions as a proportion of total claims. ************** Outlook and targets: the Group confirms its targets for full-year 2006: - an increase of 27% - 28% in operating income at constant exchangerates (average rates for full year 2005), - 25% - 26% growth in net income excluding capital gains. ************** Forthcoming results announcements: >> Estimated 2006 results: Thursday, January 25, 2007, after close of trading onthe 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