TIDMCOD
RNS Number : 4588D
Compagnie de Saint-Gobain
26 April 2017
PRESS RELEASE
Paris, April 26, 2017
First-quarter 2017 sales
EUR9,937 million
Robust organic growth of 7.6%
-- Volumes up 6.0%, with a significant improvement in all
Business Sectors and regions supported by a favorable calendar
impact of around 3%
-- Positive 1.6% price effect amid rising raw material and energy costs
-- Slightly positive currency impact of 0.4%; positive Group structure impact of 0.8%
Pierre-André de Chalendar, Chairman and Chief Executive Officer
of Saint-Gobain, commented:
"The first quarter saw robust trading. The good momentum in
sales volumes observed in 2016 continued at the start of the year
in all Business Sectors and regions. France benefited from the
recovery in new-build activity, while other Western European
countries delivered further growth. North America and emerging
markets had a good start to the year. The Group continued to pursue
its priorities, focusing particularly on sales prices amid a more
inflationary backdrop. We confirm our target of a further
like-for-like increase in operating income for the full year
2017."
On a like-for-like basis sales rose 7.6%, driven by a clear
improvement in volumes (up 6.0%) in all Business Sectors and
regions, also supported by a favorable calendar impact of around
3%. Prices continued their rise from the second half of last year,
up 1.6% over the quarter in a more inflationary cost environment.
All of our regions were able to report a positive price impact,
including France and North America.
On a reported basis, sales came in at EUR9,937 million. The
currency impact was slightly positive, at 0.4%, mainly due to the
depreciation of the euro against the Brazilian real and the US
dollar, partly offset by the fall in the pound sterling.
The positive 0.8% Group structure impact primarily reflects
acquisitions made in Asia and emerging countries (Emix, Solcrom),
in new niche technologies and services (H-Old, Isonat, France
Pare-Brise), and to further strengthen our positions in Building
Distribution.
(a) Including inter-division eliminations.
Like-for-like performance of Group Business Sectors
Innovative Materials sales climbed 6.4%.
- Flat Glass continued to show upbeat growth, with sales up
9.4%, aided partly by the positive calendar impact and once again
led by emerging countries in the construction and automotive
segments. Brazil declined slightly in construction but was up
noticeably in the automotive segment against a more favorable
comparison basis. Construction activity improved in Europe mainly
due to volumes, with the price effect also positive; automotive
glass sales remained at a good level.
- High-Performance Materials (HPM) sales rose 3.0% driven solely
by volumes. All businesses improved except Ceramics, which was
impacted by the strong performance from refractories in the
comparative period of 2016.
Construction Products (CP) sales grew 8.6%.
- Interior Solutions advanced 6.2%, with volume growth supported
by a positive calendar impact, and an increase in prices in a
strong cost inflation environment. Trading in Western Europe and in
Asia and emerging countries improved both in terms of volumes and
prices. North America also progressed.
- Exterior Solutions sales rose 11.8%. Exterior Products were
boosted by a sharp rise in volumes owing mainly to stockpiling by
distributors before the expected price rise and to favorable
weather conditions in the US; prices stabilized over the quarter.
Pipe sales grew slightly, helped by a rise in prices linked to the
hike in raw material costs - particularly in China; volumes were
hit once again by the lack of major export contracts. Mortars
delivered robust growth in Western Europe and continued to be
driven by good momentum in Asia and emerging countries.
Building Distribution sales were up 7.9%, including a favorable
calendar impact of around 3%. Led by new-build activity, trading in
France continued to recover and benefited from a price effect which
moved back into slight positive territory. Nordic countries
confirmed their dynamism, with both Norway and Sweden reporting
strong growth. The UK maintained a good level of growth driven by
prices, Spain and the Netherlands continued to deliver robust
growth, while Germany posted a more modest rise. Tough
macroeconomic conditions continued to affect Brazil.
Like-for-like analysis by region
France (up 4.6%) confirmed its improvement, benefiting from a
dynamic new-build market and a positive calendar impact. Renovation
remained hesitant. The price effect moved back into slight positive
territory.
Other Western European countries (up 8.3%) delivered further
growth, also helped by a favorable calendar impact. Good market
conditions continued to benefit the Nordic countries and the UK,
while Germany saw more moderate growth.
North America reported 8.2% sales growth led by construction.
Industry was up slightly overall, despite contrasting trends
between end-markets.
Asia and emerging countries continued on a strong trajectory,
growing 10.5%. Trading was again robust in all regions, despite
Brazil remaining slightly down.
2017 outlook
After a solid first quarter at a constant number of working days
(the positive impact of around 3% will be reversed in the second
quarter), the Group confirms its outlook for the full year
2017:
- France should continue to benefit from a gradual improvement, led by new-builds;
- Western Europe should deliver organic growth, despite less visibility in the UK;
- North America should continue to advance in construction
markets, excluding the exceptional weather impacts of 2016;
- Asia and emerging countries should see robust growth.
The Group maintains its priorities as defined in February:
- its focus on sales prices amid a stronger uptick in inflation;
- its cost savings program, with the aim of unlocking additional
savings of around EUR270 million (calculated on the 2016 cost
base);
- its capital expenditure program (around EUR1,600 million in
2017), with a focus on growth capex outside Western Europe and also
on productivity and digital transformation;
- its commitment to invest in R&D to support its differentiated, high value-added strategy;
- its focus on high levels of free cash flow generation.
In line with its February objective, the Group is targeting a
further like-for-like increase in operating income in 2017.
Glossary:
Organic growth and like-for-like changes in sales and operating
income reflect the Group's underlying performance excluding the
impact of:
-- changes in Group structure: indicators for the period
concerned are calculated based on the scope of consolidation for
the previous period (Group structure impact);
-- changes in exchange rates: indicators for the period
concerned and those for the previous period are calculated using
exchange rates for the previous period (currency impact);
-- changes in applicable accounting policies.
Operating income: see Note 3 to the financial statements in the
2016 registration document, available by clicking here:
https://www.saint-gobain.com/sites/sgcom.master/files/ddr_2016_va.pdf
Free cash flow: cash flow from continuing operations excluding
the tax impact of capital gains and losses on disposals, asset
write-downs and material non-recurring provisions, less capital
expenditure.
Capital expenditure: investments in property, plant and
equipment.
Financial calendar
- Investor Day: May 17, 2017.
- First-half 2017 results: July 27, 2017, after closing of
trading on the Paris Bourse.
Analyst/Investor relations Press relations
----------------------------------------- ------------------------------------------------------------
+33 1 47 62
44 29
+33 1 47 62 +33 1 47 62
Vivien Dardel 30 93 30 10
Florent Nouveau +33 1 47 62 Charles Hufnagel +33 1 47 62
Floriana Michalowska 35 98 Susanne Trabitzsch 43 25
------------------------ --------------- -------------------------------------------- --------------
A conference call will be held at 6:30pm (Paris time) on April
26, 2017: +33 1 70 77 09 47.
Important disclaimer - forward-looking statements:
This press release contains forward-looking statements with
respect to Saint-Gobain's financial condition, results, business,
strategy, plans and outlook. Forward-looking statements are
generally identified by the use of the words "expect",
"anticipate", "believe", "intend", "estimate", "plan" and similar
expressions. Although Saint-Gobain believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions as at the time of publishing this document,
investors are cautioned that these statements are not guarantees of
its future performance. Actual results may differ materially from
the forward-looking statements as a result of a number of known and
unknown risks, uncertainties and other factors, many of which are
difficult to predict and are generally beyond the control of
Saint-Gobain, including but not limited to the risks described in
Saint-Gobain's registration document available on its website
(www.saint-gobain.com). Accordingly, readers of this document are
cautioned against relying on these forward-looking statements.
These forward-looking statements are made as of the date of this
document. Saint-Gobain disclaims any intention or obligation to
complete, update or revise these forward-looking statements,
whether as a result of new information, future events or
otherwise.
This press release does not constitute any offer to purchase or
exchange, nor any solicitation of an offer to sell or exchange
securities of Saint-Gobain.
For any further information, please visit
www.saint-gobain.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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