3rd Quarter Results
29 October 2003 - 11:04PM
UK Regulatory
RNS Number:4367R
Compagnie de Saint-Gobain
29 October 2003
SALES FOR THE FIRST NINE MONTHS OF 2003:
- UP 3.8% AT CONSTANT EXCHANGE RATES
- UP 2.2% LIKE-FOR-LIKE
Consolidated sales for the Saint-Gobain Group came to Euro22,236 million for the
first nine months of 2003, representing a contraction of 3.0% on an actual
structure basis and 4.6% on a comparable structure basis. As for the first six
months of the year, the decline in sales is entirely due to currency effects -
which had a 6.6% negative impact during the period - and especially the sharp
falls in the value of the US dollar, pound sterling and Brazilian real against
the euro. At constant exchange rates (based on average rates for the first nine
months of 2002), sales for the first nine months of 2003 were up 3.8% on an
actual structure basis and 2.2% on a comparable structure basis.
The like-for-like increase was due to a 1.1% rise both in prices and sales
volumes.
Sales trends by business sector, division and geographic area are as follows:
2003 sales 2002 sales Change Change Change
(9 months) (9 months) based on based on based on
(in Euro m) (in Euro m) actual comparable comparable
structure structure structure and
in euros local
currencies
SECTORS & DIVISIONS
GLASS (1) 8,460 8,946 -5.4% -6.2% +1.0%
Flat Glass 3,188 3,308 -3.6% -4.3% +1.8%
Insulation and Reinforcements 2,326 2,505 -7.1% -8.9% -1.4%
Containers 2,954 3,141 -6.0% -6.0% +2.3%
HIGH-PERFORMANCE MATERIALS (1) 2,447 2,770 -11.7% -11.1% +0.7%
Ceramics & High. Perf. Plastics and
Abrasives 2,447 2,770 -11.7% -11.1% +0.7%
HOUSING PRODUCTS (1) 11,548 11,426 +1.1% -1.8% +3.5%
Building Materials 2,228 2,427 -8.2% -8.3% +4.0%
Building Materials Distribution 8,400 8,196 +2.5% -1.3% +1.9%
Pipe 1,141 1,013 +12.6% +11.5% +15.7%
INTERNAL SALES (INTER-SECTOR) (219) (215) ----- ----- -----
GROUP 22,236 22,927 -3.0% -4.6% +2.2%
GEOGRAPHIC AREAS
France 7,415 7,085 +4.7% +2.0% +2.0%
Other European countries 9,724 9,817 -0.9% -2.9% +0.2%
North America 4,410 5,289 -16.6% -15.1% +1.7%
Rest of the world 1,623 1,654 -1.9% -6.4% +20.4%
INTERNAL SALES (936) (918) ---- ---- ----
GROUP 22,236 22,927 -3.0% -4.6% +2.2%
(1) including inter-division eliminations
The overall like-for-like trends seen in first-half 2003 continued into the
third quarter of the year, with the divisions serving the new construction,
renovation and consumer markets enjoying vigorous demand both in the United
States and Europe (excluding Germany). High Performance Materials sales held
firm during the period and the Pipe Division continued along the growth track,
spurred by major distant export contracts. Overall, prices held up well in all
divisions, with the sole exception of Insulation and Reinforcements.
The Glass Sector reported moderate like-for-like growth for the period, as the
robust performance turned in by Flat Glass and Containers was partly offset by a
contraction in volumes and prices for the Reinforcements Division. Momentum was
strong in volume terms in most of the Insulation Division's markets for the
third quarter, although sales prices were eroded during the period.
In line with its first-half performance, sales for the High-Performance
Materials sector held firm during the third quarter compared with the same
period in 2002. The Sector is still not seeing any significant sign of a
recovery in corporate capital spending, either in the United States or in
Europe.
For the second quarter in a row the Housing Products Sector recorded the Group's
highest level of organic growth thanks to a 15.7% sales surge from the Pipe
Division, driven by major distant export contracts. The Building Materials
Division saw a significant upturn in sales volumes in the United States and
Europe during the third quarter.
Meanwhile, fueled by both organic growth and acquisitions, the Building
Materials Distribution Division continued to expand despite a downturn in the
German and Dutch markets.
By geographic area, sales remained strong in France during third-quarter 2003
and held relatively firm in other European countries. In the United States,
volumes increased for the Insulation and Building Materials Divisions thanks to
the buoyant construction market. For the other Divisions, the first-half trends
observed in the United States continued into the third quarter. Demand remained
high in emerging countries with double digit sales growth once again reported
during the quarter.
Asbestos claims in the United States: some 6,000 new claims were received by
Certain Teed during third-quarter 2003, including less than 1,000 in the State
of Mississippi. The surge in litigation in Mississippi observed during the
latter part of 2002 and the first half of 2003 has clearly come to an end, and
the monthly number of new claims received in the other States during the quarter
was less than half the number recorded in the second quarter of the year.
At the same time, 15,000 claims were settled, representing practically the same
number as in the second quarter of the year.
These developments resulted in a decrease in the number of outstanding claims
compared with end-June 2003, to 114,000 at September 30, 2003.
The average individual cost of settlement has remained flat since the beginning
of the year, at about US$ 2,100.
The fall-off in new claims filed during the 3rd quarter provides a clear
indication that the favorable trend observed in the first half of the year is
set to continue. It is encouraging to note that no exceptional surge in claims
has occurred to date in the States that are considering legislation or rules
that would make them less plaintiff-friendly venues for asbestos cases (Texas,
Ohio and Michigan).
In addition, on July 11, 2003, the US Senate Judiciary Committee approved a bill
sponsored by Senator Hatch to set up a federal trust fund to compensate asbestos
victims, providing a possible national solution, at some point in the future,
for all current and future asbestos claims.
Outlook: in light of the sharp rise in the euro against most other currencies
observed since the beginning of the year, operating income and net income for
the full year will be down on 2002. At constant exchange rates (i.e. based on
average 2002 exchange rates), the Group is still aiming for a modest increase in
operating income.
October 28, 2003.
Next results announcement
> Estimated 2003 results: Thursday, January 29, 2004 after the close of trading.
Investor Relations Department
Ms. Florence TRIOU-TEIXEIRA Tel.: +33 1 47 62 45 19 - mailto:
florence.triou@saint-gobain.com
Mr. Alexandre ETUY Tel.: +33 1 47 62 37 15 - mailto:
alexandre.etuy@saint-gobain.com
Fax: +33 1 47 62 50 62
This information is provided by RNS
The company news service from the London Stock Exchange
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