1st Quarter Results
25 April 2003 - 5:00PM
UK Regulatory
RNS Number:3684K
Compagnie de Saint-Gobain
24 April 2003
press
release
FIRST QUARTER 2003 SALES: UP 2.6% ON A LIKE-FOR-LIKE BASIS
Net consolidated sales of the Saint-Gobain Group for the first quarter of 2003
amounted to Euro6,986 million, compared with Euro7,296 million for the same period in
2002, representing a contraction of 4.2% on an actual structure basis, or 5.8%
on a comparable structure basis. This decline is entirely due to currency
effects - which had an 8.2% negative impact during the period - and especially
the sharp falls in the value of the US dollar and the Brazilian real. On a
comparable structure and exchange rate basis (like-for-like), sales were up
2.6%. Sales volumes increased by 1.2%, while prices remained firm, rising by
1.4%.
The majority of the Group's divisions contributed to this performance, which was
achieved against a backdrop of challenging economic conditions, testifying to
Saint-Gobain's growth capacity, boosted by an expanding presence in emerging
countries.
Sales trends by business sector, division and geographic area are as follows:
Q1 2003 Q1 2002 Change Change based Change based on
sales sales based on on comparable comparable
actual structure in structure and
(in EUR (in EUR structure euros exchange rates
millions) millions) (like-for-like)
SECTORS & DIVISIONS
GLASS (1) 2,777 2,916 -4.8% -5.4% +3.9%
Flat Glass 1,069 1,100 -2.8% -2.9% +5.7%
Insulation & Reinforcements 774 820 -5.6% -7.5% +1.5%
Containers 936 1,000 -6.4% -6.4% +3.8%
HIGH-PERFORMANCE MATERIALS (1) 835 955 -12.6% -10.5% +3.6%
Ceramics & Plastics and Abrasives 835 955 -12.6% -10.5% +3.6%
HOUSING PRODUCTS (1) 3,448 3,500 -1.5% -4.7% +1.4%
Building Materials 671 754 -11% -12.5% +3.4%
Building Materials Distribution* 2,486 2,450 +1.5% -2.7% +0.8%
Pipe 358 359 -0.3% -0.3% +3.3%
INTERNAL SALES (74) (74) ------ ------ -----
GROUP 6,986 7,296 -4.2 % -5.8% +2.6%
GEOGRAPHIC AREAS
France 2,401 2,271 +5.7% +1.5% +1.5%
Other European Countries 2,943 2,997 -1.8% -2.8% +0.0%
North America 1,452 1,759 -17.5% -16.2% +2.6%
Rest of the world 496 561 -11.6% -14.7% +26.6%
INTERNAL SALES (306) (292) ---- ---- -----
GROUP 6,986 7,296 -4.2 % -5.8% +2.6%
* Within the Housing Products Sector, the Pipe Division's distribution
operations were transferred, as from January 1, 2002, to the Building Materials
Distribution Division, in order to set up a European organization for sales of
materials in engineering markets. Excluding the Pipe distribution operations,
Building Materials Distribution sales would be up 1.4% on a comparable structure
and exchange rate basis.
(1) including inter-division eliminations
With the exception of Reinforcements, all of the Group's divisions enjoyed
moderate sales growth in first quarter 2003, particularly in terms of prices.
The Glass Sector reported the Group's strongest like-for-like growth in the
period, for the bulk of its businesses. Robust sales for the Flat Glass Division
in Brazil and the European automotive market offset the downturn felt in the
European construction market. The Insulation Division reaped the benefits of the
healthy US residential construction market, while Containers reported a further
increase in both volumes and prices, particularly in the United States and
Germany. Reinforcements faced downward price pressure and, despite a sharp
improvement in volumes, was the only division to report a slight contraction in
sales over the period.
After two years of declining sales, the High-Performance Materials Sector showed
the first signs of a recovery in its main markets for Ceramics & Plastics as
well as for Abrasives.
Like-for-like growth in the Housing Products Sector was slightly below the Group
average, due to the lower contribution, during the quarter, from the Building
Materials Distribution Division. This was mainly due to the reorganization of
Pipe Distribution operations as well as to a further downturn in the
construction market in Germany and, to a lesser extent, a slowdown in the
interior decoration market in France, which had a direct impact on Lapeyre's
sales. Business in the Sector's other divisions was buoyant, boosted by the
strong US residential construction market for the Building Materials Division
and deliveries under the Abu Dhabi contract for the Pipe Division.
By geographic area, moderate like-for-like growth was reported in France and the
United States. In the rest of Europe the picture was mixed, with the downturn
continuing in Germany, but Spain, Italy and the United Kingdom reporting strong
performances. At the same time, demand was still buoyant in emerging countries,
particularly in Latin America.
Asbestos claims in the United States: some 22,000 new claims were received by
Certain Teed in first-quarter 2003, including 14,000 in the State of
Mississippi. As announced at the beginning of 2003, there was an exceptional
surge of claims in Mississippi prior to the end of last year, following a new
law more favorable to defendants. Most of the claims received during the first
quarter 2003 in Mississippi were filed prior to January 1st, 2003, when the new
law became fully applicable. Excluding this exceptional surge, the number of new
claims filed is not on a general upward trend.
At the same time, 9,000 claims were settled, and several thousand transferred to
an inactive docket. As a result, there were approximately 114,000 outstanding
claims at March 31, 2003.
The average individual cost of settlement came to US$ 2,100, on a par with the
trend of the prior period.
Over the next few months, the number of new claims filed in Mississippi should
reduce significantly and newly introduced or expected amendments to legislation
in other States could also have a positive impact on the future rate of new
claims filed.
Outlook:
The Group's moderate organic growth in first-quarter 2003 is in line with the
objectives announced for the year as a whole. Nevertheless, the Group is feeling
the negative impact of currency effects and the increase in the cost of energy
and certain raw materials. As the international economic situation is still
highly uncertain, it is too early to tell, at this stage, whether or not these
negative factors will be corrected by the end of the year.
April 24, 2003.
Next results announcements:
- First-half 2003 results: July 24, 2003, after the close of the stock market.
Investor Relations Department
Tel. : Florence TRIOU-TEIXEIRA +33 1 47 62 45 19 - mailto: florence.triou@saint-gobain.com
Tel. : Alexandre ETUY +33 1 47 62 37 15 - mailto: alexandre.etuy@saint-gobain.com
Fax : +33 1 1 47 62 50 62
This information is provided by RNS
The company news service from the London Stock Exchange
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