22nd Apr 2008 17:12
Compagnie de Saint-Gobain22 April 2008 April 22, 2008 FIRST-QUARTER 2008 SALES > UP 1.5% AT CONSTANT EXCHANGE RATES* > UP 0.9% LIKE-FOR-LIKE Saint-Gobain's consolidated sales for first-quarter 2008 came in at €10,301million, compared with €10,447 million in the same year-ago period. Thisrepresents a decline of 1.4% on an actual structure basis, but a rise of 0.9%like-for like (on a constant structure and exchange rate basis) and of 1.5% atconstant exchange rates*. At a constant number of working days, organic growth for the Group would havebeen slightly above 3.0%, despite the very high comparison basis withfirst-quarter 2007 (up 8.0% on a like-for-like basis compared to the prior-yearperiod). Changes in Group structure represent 0.5% growth in sales. The impact of theDesjonqueres and Reinforcements & Composites divestments in 2007 was more thanoffset by the contribution from acquisitions, in particular Maxit and Norandex(consolidated as of March 1, 2008 and September 1, 2007, respectively). Theexchange rate impact was a negative 2.8%, in particular as a result of thefurther slide in the value of the US dollar and pound sterling against the euro. Like-for-like, consolidated sales moved up €96 million, or 0.9%. Sales pricesremained on an upward trend (+2.6%), while volumes fell back slightly (-1.7%),as expected, due to fewer working days than for the same period 2007. All of the Group's business sectors reported a rise in like-for-like sales overthe quarter, with the exception of Construction Products (CP), which saw a 0.4%dip in sales. This was fueled by a downturn in the Interior Solutions businessin the US, not entirely offset by vigorous 4.9% growth in Exterior Solutions. On the whole, residential construction remained on track in western Europeancountries. In the United States, however, in line with the economic scenario setout by the Group at the beginning of the year, residential construction marketscontinued to lose ground and are not yet showing any tangible signs of levelingoff. (*) Based on average exchange rates for first-quarter 2007. As anticipated, household consumption, industrial output and capital spendingheld up very well in both the United States and Europe. Emerging countries and Asia remained buoyant and once again posted double-digitgrowth. * * * Sales trends by business sector and major geographic area are as follows: Q1 2008 Q1 2007 % change on an % change on a % change actual comparable like-for-like sales sales structure basis structure (• millions) (• millions) basis BY BUSINESS SECTOR Flat Glass 1,399 1,369 +2.2% +1.5% +3.0% High-Performance Materials 1,036 1,241 -16.5% -4.5% +0.5% Construction Products (1) 2,730 2,720 +0.4% -4.1% -0.4%Interior Solutions 1,578 1,680 -6.1% -6.9% -3.7%Exterior Solutions 1,159 1,047 +10.7% +0.6% +4.9% Building Distribution 4,637 4,424 +4.8% -0.8% +1.1% Packaging 797 955 -16.5% +0.2% +4.5% Internal sales and other (298) (262) GROUP 10,301 10,447 -1.4% -1.9% +0.9% BY GEOGRAPHIC AREA France 3,250 3,277 -0.8% +2.4% +2.4%Other western European countries 4,699 4,725 -0.6% -3.5% -0.7%North America 1,263 1,473 -14.3% -17.3% -6.2%Emerging countries and Asia-Pacific 1,630 1,533 +6.3% +11.5% +11.8% Internal sales (541) (561) ----- ----- ----- GROUP 10,301 10,447 -1.4% -1.9% +0.9% (1) Including inter-division eliminations. Performance of Group sectors Activity in the Flat Glass sector (+3.0% like-for-like) continued to be drivenby construction markets in Europe, Asia and emerging countries. There was afurther rise in volumes and sales prices and the product mix continued toexpand. Demand for automotive glass also remained strong worldwide. High-Performance Materials achieved 0.5% like-for-like growth, mainly as aresult of the 2.8% growth in Ceramics, Plastics & Abrasives. Sales recorded by the Construction Products (CP) sector gained 0.4% on areported basis but lost 0.4% like-for-like. The impact of changes in Groupstructure (-4.5%) stemming from Saint-Gobain's acquisition of Norandex and Maxit(consolidated as of September 1, 2007 and March 1, 2008, respectively) offsetthe negative exchange rate impact (-3.7%) resulting chiefly from the fall in thevalue of the US dollar. - Hit by a further weakening of its US operations, Interior Solutions saw sales fall by 6.1% on a reported basis and by 3.7% like-for-like, despite the resilience of Europe and sustained business momentum in emerging countries. - In contrast, sales for the Exterior Solutions business surged 10.7% on a reported basis and 4.9% like-for-like, buoyed by a vigorous performance from Pipe and Mortars. Exterior Fittings businesses in the United States remained stable over the quarter. Building Distribution delivered the Group's best sales growth on a reportedbasis at 4.8%, powered by acquisitions (5.6%) and organic growth (1.1%), despitea very high comparison basis (organic growth of 11.0% in first-quarter 2007) .Growth continued to be powered by France and Scandinavia, with the UnitedKingdom reporting a slight downturn. Packaging delivered 4.5% organic growth, amid robust demand especially in Europeand emerging countries. * * * Sales analysis by geographic area The breakdown of sales by geographic area is in line with the trends observed infourth quarter 2007. - France (29.5% of Group sales in first-quarter 2008) posted a 2.4% rise in sales on a like-for-like basis, while other western European countries (43.9% of Group sales) saw like-for-like sales shed 0.7%. The expected slowdown in Spain and softening market conditions in the United Kingdom were not entirely offset by good performances from Germany - up on the first quarter despite the unfavorable basis for comparison -, Scandinavia and Benelux. - In North America (11.9% of Group sales), business continued on a downward trend with a fall of 6.2% in like-for-like sales fueled by the ongoing crisis in residential construction markets. - Asia and emerging countries (14.7% of Group sales) continued to post vigorous growth, coming in at 11.8% on a like-for-like basis. Latin America and Asia turned in particularly robust performances, delivering organic growth of 15.4% and 16.2%, respectively. * * * Update on asbestos claims in the United States Some 1,000 claims were filed against CertainTeed in the first quarter of 2008,versus 2,000 in the same period of 2007. After taking into account around 2,000settlements made during the period, the number of outstanding claims at March31, 2008 declined to approximately 73,000 from 74,000 claims outstanding atDecember 31, 2007. * * * Outlook The Group is confident in its ability to adapt and withstand more challengingeconomic conditions, and therefore confirms its objectives for 2008: - modest growth in operating income at constant exchange rates (average exchange rates for 2007) and recurring net income*, - a solid financial structure and continuing high levels of free cash flow. * excluding capital gains, asset write-downs, and the Flat Glass fines (EuropeanCommission) * * * Forthcoming results announcements: - Final results for first-half 2008: July 24, 2008, 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 15Vivien Dardel Tel.: +33 1 47 62 44 29 Fax: +33 1 47 62 50 62 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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