TIDMCOD
RNS Number : 8334Q
Compagnie de Saint-Gobain
25 October 2011
Paris, October 25, 2011.
Sales for the first nine months of 2011: up 5.4% to EUR31.6 billion.
Organic growth: 5.8%, of which 4.1% in Q3 (after 4.4% in Q2).
----------------------------------------------------------------------
Third-quarter 2011 highlights:
* Sales prices: up 2.9% in Q3 and 2.6% over nine months
(after a rise of 2.8% in Q2)
* Sales volumes: up 1.2% in Q3 and 3.2% over nine
months (after a rise of 1.6% in Q2)
* Double-digit organic growth on energy efficiency
markets in France
* Continuing vigorous growth in Asia and emerging
countries: 7.2% in Q3 and 10.4% over nine months
* 2011 targets confirmed
------------------------------------------------------------------
Pierre-Andre de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain,
commented:
"Overall, the Group's trading performance in the third quarter was in
line with the three months to June 30, thanks mainly to upbeat trends
in sales prices and continuing robust momentum in Asia and emerging
countries as well as in industrial markets. Residential construction
and renovation markets in France, Germany and Scandinavia also continued
to enjoy good growth in the third quarter, driven by energy-efficient
Habitat solutions - particularly in France.
In the fourth quarter, we expect the underlying trends observed over
the past three months to continue, although market conditions will be
more challenging due to an increasingly uncertain economic climate and
a tougher basis for comparison, compounded by fewer working days than
in the same year-ago period.
Consequently, despite a more challenging environment in the last few
months of this year, we confirm our full-year 2011 targets of robust
organic growth and a double-digit rise in operating income*.
We also confirm our free cash flow target of EUR1.3 billion, after a
EUR500 million increase in our capital expenditure focused mainly on
the Group's key growth drivers (emerging countries and energy-efficient
solutions for the Habitat market)."
* At constant exchange rates (average exchange rates for 2010).
Saint-Gobain delivered solid consolidated sales growth over the
first nine months of 2011, up 5.4% year-on-year to EUR31,629
million, compared to EUR30,007 million in the nine months to
September 30, 2010.
The currency impact, which had been positive in the first
quarter, reversed in the three months to June 30 on the back of the
decline in the US dollar against the euro. As a result, currency
fluctuations over the first nine months had a slightly negative
(-0.5%) impact on sales. Changes in Group structure had a virtually
neutral impact (+0.1%), with sales from acquisitions carried out
over the past 12 months almost entirely offset in the nine-month
period by the disposal of Advanced Ceramics at 31 December
2010.
On a constant exchange rate basis* and like-for-like (constant
Group structure and exchange rates), sales growth was virtually
identical, at 5.7% and 5.8%, respectively. Volumes rose 3.2% while
sales prices moved up 2.6%.
In the third quarter, consolidated sales came in 2.6% higher
year-on-year, at EUR10,754 million from EUR10,478 million a year
earlier. This breaks down into a positive 0.2% Group structure
impact, a negative 1.7% currency effect, and organic growth of 4.1%
(including a price impact of 2.9% and a volume effect of 1.2%).
Overall, the Group's organic growth performance in third-quarter
2011 was close to the second quarter, which had reported 4.4%
organic growth, including a price impact of 2.8% and a volume
effect of 1.6%. All business sectors and geographic areas once
again made a positive contribution to the Group's performance.
Sales prices in particular remained upbeat across all sectors and
divisions (despite a tougher basis for comparison than in
first-half 2011), particularly in businesses which saw the sharpest
rise in raw material and energy costs.
As in the second quarter, growth in sales volumes over the three
months to September 30 continued to be powered by vigorous advances
in emerging countries and by industrial markets. Volume growth also
reflects the one-off boost to US renovation resulting from severe
storms early in the year, as well as healthy trading on residential
construction and renovation markets in France, Germany and
Scandinavia.
The Group's advances on construction markets in Western Europe
continued to be spurred by high value-added solutions and
particularly businesses involved in energy-efficient solutions for
the Habitat market (Insulation, Reinforced Thermal Insulation
Glass, etc.), which delivered further robust growth in the quarter
(and double-digit growth in France) on the back of new energy
regulations and especially Thermal Regulation "RT 2012" in
France.
* Based on average exchange rates for the first nine months of
2010.
The table below presents sales trends by business sector and
major geographic area:
Sales for Sales for % change % change % change
the first the first on an actual on a comparable on a like-for-like
nine months nine months structure structure basis
of 2010 of 2011 basis basis
(EURm) (EURm)
----------------------------- ------------- ------------- -------------- ----------------- --------------------
BUSINESS SECTOR
Innovative Materials
(1)
Flat Glass
High-Performance Materials 6,918 7,230 +4.5% +6.3% +7.3%
3,854 4,121 +6.9% +6.6% +6.6%
Construction Products 3,078 3,133 +1.8% +6.2% +8.5%
(1)
Interior Solutions 8,269 8,703 +5.3% +4.4% +5.5%
Exterior Solutions 3,872 4,122 +6.5% +5.4% +6.0%
4,424 4,620 +4.4% +3.7% +5.3%
Building Distribution
12,892 13,763 +6.8% +6.4% +5.8%
Packaging (Verallia)
2,683 2,718 +1.3% +0.4% +2.8%
Internal sales and misc.
(755) (785) ------ ------- -------
GROUP
30,007 31,629 +5.4% +5.3% +5.8%
GEOGRAPHIC AREA
France
Other Western Europe 8,520 8,922 +4.7% +4.7% +4.7%
North America 12,724 13,497 +6.1% +5.9% +4.7%
Emerging countries and 4,287 4,214 -1.7% -0.3% +6.2%
Asia/Pacific 5,831 6,466 +10.9% +10.1% +10.4%
Internal sales (1,355) (1,470) ----- ----- -----
GROUP 30,007 31,629 +5.4% +5.3% +5.8%
----------------------------- ------------- ------------- -------------- ----------------- --------------------
(1) Including inter-division eliminations.
Like-for-like performance of Group business sectors
Innovative Materials continued to report robust growth, over
both the nine months to September 30 (7.3%) and the third quarter
(4.9%, after 5.5% in the second quarter). Emerging countries and
markets related to industrial output continued to perform well.
Sales prices continued to advance across all divisions.
-- Flat Glass posted 6.6% organic growth over the first nine
months of the year (3.4% in the third quarter, after 5.8% in the
second). Sales growth over the three months to September 30 was
chiefly powered by sales volumes in Asia and emerging countries in
both Construction and Automotive Glass markets, while sales volumes
in Western Europe remained stable. Compared to last year, sales
prices increased for both commodity products (float glass) and
processed products, albeit at a slower pace than in the first
half.
-- High-Performance Materials (HPM) delivered the Group's
strongest organic growth, over the nine months to September 30
(8.5%) as well as in the third quarter (7.1%, after 5.5% in the
three months to June 30), with the rise in sales prices picking up
pace over the past three months to curb the impact of spiraling raw
material and energy costs. Sales volumes remained upbeat across all
geographic areas (especially Asia and emerging countries), in
particular in markets linked to industrial output. In contrast,
markets related to capital spending stalled right at the end of the
quarter, after having steadily improved since 2010.
Sales for the Construction Products (CP) sector rose 5.5% over
the nine-month period and 6.9% in the third quarter (after 3.7% in
the three months to June 30). The sharp organic growth in sales
over the three months to September 30 chiefly reflects the surge in
sales volumes in US Interior Solutions and Exterior Solutions
compared to the same period in 2010 (the year-earlier period
provides a particularly weak basis for comparison, with volumes
down 24%). Trading remained bullish in Asia and emerging countries
but more uneven in Western Europe. Sales prices remained upbeat in
all divisions and geographic areas.
-- Interior Solutions reported strong organic growth, over both
the nine months to September 30 (6.0%) and in the third quarter
(5.9%, after 3.9% in the second quarter). Sales volumes were up
across all geographic areas, particularly North America and Asia
and emerging countries. In Western Europe and France in particular,
trading continued to be buoyed by the introduction of stricter
energy performance regulations in the Habitat market. Insulation in
France continued to deliver double-digit growth, at 15.1% in the
first nine months of 2011 and 16.1% in the third quarter.
-- Exterior Solutions also posted strong organic growth over
both the nine months to September 30 (5.3%) and in the third
quarter (7.9%, after 3.9% in the second quarter). Growth gathered
pace over the last three months due mainly to a one-off improvement
in sales volumes on the renovation market in the US (Exterior
Products) following severe storms early in the year, as well as
fairly weak third-quarter 2010 comparatives. In contrast, sales
volumes for Pipe continued to decline, hit by a combination of
budgetary austerity in Europe, economic tightening in China and a
fall in export sales to Middle Eastern countries. Industrial
Mortars reported moderate organic growth in the third quarter,
driven by robust momentum in emerging countries and particularly
Latin America and Eastern Europe. Sales prices remained upbeat,
although the business was unable to fully pass on the sharp rise in
raw material costs.
Building Distribution kept up its good momentum, reporting
organic growth of 5.8% over the nine months to September 30 and
3.0% in the third quarter. Over the past three months, growth
continued to be powered by France, Germany and Scandinavia,
although its pace slowed slightly compared to the second quarter
(4.5%), due to a tougher basis for comparison as well as the
continuing slowdown in the UK and Southern Europe. Sales prices
remained upbeat throughout the nine-month period.
Packaging (Verallia) reported 2.8% organic growth for the
nine-month period (0.0% in the third quarter), buoyed by favorable
trends in sales prices, which gained 2.6% over the nine months to
September 30 as well as in the third quarter. In contrast, sales
volumes were broadly stable over the period (but edged down
slightly in the three months to September 30), with the slowdown in
the US and to a lesser extent in Europe fully offset by strong
growth in Latin America over the first nine months of the year.
Like-for-like analysis by geographic area
The quarter-on-quarter analysis of organic growth by key
geographic area at September 30, 2011 shows continued vigorous
trading in Asia and emerging countries, a strong upturn in North
America, and more moderate growth in France and other Western
European countries.
- In France and other Western European countries, organic growth
came in at 4.7% for the nine months to September 30 (1.6% and 1.8%,
respectively, in the third quarter), driven chiefly by further
advances in businesses related to industrial markets and overall by
upbeat sales prices. The improvement in residential construction
markets in France, Germany and Scandinavia during the first half
continued into the third quarter, but at a slower pace. However,
conditions on residential construction markets remained challenging
in the UK and Southern Europe.
- North America reported organic growth of 6.2% over the first
nine months of the year and 11.0% in the three months to September
30. This was chiefly powered by ongoing solid trading in
High-Performance Materials and to an increase in Construction
Products sales due to the one-off boost in renovation demand
following the severe storms in the US early in the year.
- Asia and emerging countries turned in another bumper growth
performance, at 10.4% over the nine-month period and 7.2% in the
third quarter, despite a slowdown in the Pipe business,
particularly in China and the Middle East.
Update on asbestos claims in the United States
Some 3,000 claims were filed against CertainTeed in the first
nine months of 2011, compared with 4,000 claims in the same period
in 2010. Taking into account around 7,000 claims settled or
transferred to inactive dockets in the nine-month period (versus
13,000 in the first nine months of 2010), the total number of
outstanding claims continued to fall, down to 52,000 at September
30, 2011, versus 54,000 at June 30, 2011 and 56,000 at December 31,
2010.
Outlook and objectives for full-year 2011
After a third-quarter performance broadly in line with the
previous quarter, albeit with markedly uneven results from one
business and region to the next, the Group expects the underlying
trends observed over the past quarter to continue in the three
months to December 31. However, taking into account firstly, the
impact on the Group's markets of the deep uncertainties plaguing
the global economy and secondly, a tougher basis for comparison
(especially in Construction Products), compounded by fewer working
days than in 2010 (one day less), the Group's organic growth could
be lower in the fourth quarter.
In particular,
- growth should remain vigorous in Asia and emerging countries,
despite a tougher basis for comparison and a slight fall-off in
growth.
- sales in Western Europe should remain healthy, with industrial
markets holding firm and very moderate advances overall in
residential construction, thanks to the ongoing development of high
value-added solutions in the Habitat market and particularly those
related to energy efficiency (Insulation, Insulating Glass, etc.).
However, trends should remain highly uneven from one country to the
next, with fresh advances in France, Scandinavia and Germany, the
slowdown in the UK taking hold, and a further decline in Southern
Europe.
- in North America, trading should remain brisk in industrial
markets. However, conditions in the construction market should
toughen once again, with no further boost to renovation resulting
from early-year storms and no longer the benefit of a weak
comparison basis.
- overall, household consumption markets should hold up fairly
well, with bullish growth in emerging countries offsetting the mild
slowdown in mature markets.
Against this backdrop, and following price increases of 2.8% and
2.9%, respectively, in the second and third quarters, the Group
will continue to leverage its price-focused policy and endeavor to
stem the impact of spiraling raw material and energy costs over the
full year.
Given the deep uncertainties currently plaguing the global
economy, Saint-Gobain will also:
- continue to maintain a very tight rein on costs and adopt a
highly disciplined and selective approach in implementing its
development strategy, focused on emerging countries and businesses
linked to energy-efficient solutions for the Habitat market.
- continue to keep a close watch on cash management and on
maintaining a strong balance sheet.
Consequently, despite a tougher and more uncertain trading environment,
the Group is confirming its targets for full-year 2011:
- robust organic growth;
- double-digit growth in operating income (at constant exchange
rates*), despite the rise in raw material and energy costs;
- EUR1.3 billion in free cash flow, after a EUR500 million increase
in capital expenditure;
- a persistently strong balance sheet.
* average exchange rates for 2010.
-------------------------------------------------------------------------------
Forthcoming results announcement:
Results for 2011: February 16, 2012, after close of trading on
the Paris Bourse.
C Analyst/Investor relations Press relations
------------------------------------ -----------------------------
F Florence Triou-Teixeira +33 1 47 Sophie Chevallon +33 1 47
62 45 19 62 30 48
E Vivien Dardel +33 1 47 62 44 29 Susanne Trabitzsch +33 1 47
62 43 25
------------------------------------ -----------------------------
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/8334Q_-2011-10-25.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBLBDGXGDBGBU
Compagnie De Saint-gobain (LSE:COD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Compagnie De Saint-gobain (LSE:COD)
Historical Stock Chart
From Oct 2023 to Oct 2024