Compagnie de Saint-Gobain Coronavirus pandemic update (1674H)
23 March 2020 - 6:34PM
UK Regulatory
TIDMCOD
RNS Number : 1674H
Compagnie de Saint-Gobain
23 March 2020
PRESS RELEASE
March 23, 2020, at 8:00 am
SAINT-GOBAIN PUTS IN PLACE NECESSARY MEASURES TO ADAPT
TO THE CORONAVIRUS PANDEMIC
Saint-Gobain's businesses are disrupted in the countries
impacted by the coronavirus, with very different situations from
one country to another.
Since the start of the health crisis in China, the Group has
taken the necessary measures to ensure the health of its employees,
customers, suppliers and other stakeholders. It is cooperating with
the authorities in each country where it is present.
In terms of its business activity, Saint-Gobain is quickly
adapting to the evolution in demand, aiming for operational
continuity, depending on the health situation and on government
decisions in each country, whilst reducing costs (reduction of
teams, partial unemployment or stoppages) and prioritizing the
health of its stakeholders:
- In our distribution activities, which mostly serve trade
professionals rather than the general public, the Group has
adjusted its service offering to customers over the last few days,
with new procedures in terms of orders for collection, delivery and
via online and telephone orders; in particular, certain brands in
France that were closed for a few days have progressively
recommenced business;
- In our manufacturing activities, sites have made the necessary
adjustments given the impacts of the crisis on the value chain, in
particular in the automotive market. The operation of our factories
is continuously adapted as the situation evolves, in a very
flexible manner within the new organization. In this respect, all
of our Chinese factories have restarted operations, following the
rapid improvement in demand.
Given the context, Saint-Gobain is taking all necessary actions
to limit the effects of the pandemic on its operating profit and
cash as much as possible:
- Much greater decrease in capital expenditure than the EUR200m
reduction initially planned for 2020 versus 2019 by deferring all
possible projects that were scheduled in the coming months;
- Adaptation of cost structure and postponement of expenses,
using local measures where appropriate, in particular unemployment
and partial unemployment;
- Ever tighter monitoring of working capital evolution.
The Group has a very solid financial position and has the
necessary cash and financing in place to cope with the consequences
of the pandemic. As of December 31, 2019 the Group's cash and cash
equivalents stood at EUR5.0 billion. In addition, the financing
sources available to the Group have recently been further
reinforced given the current context:
- A new syndicated credit line of EUR2.5 billion, in addition to
the confirmed and undrawn back-up credit lines of EUR4.0
billion;
- Access to the new Pandemic Emergency Purchase Program (PEPP)
launched by the European Central Bank on March 18, 2020.
At the publication of its 2019 results Saint-Gobain set out its
outlook for 2020 subject to the impact of the coronavirus. Given
the pandemic, the guidance for 2020 is no longer valid and it is
not currently possible to evaluate its impact on the Group's
businesses.
The Group will provide an update at the publication of its
first-quarter 2020 sales on April 23.
ABOUT SAINT-GOBAIN
Saint-Gobain designs, manufactures and distributes materials and
solutions which are key ingredients in the wellbeing of each of us
and the future of all. They can be found everywhere in our living
places and our daily life: in buildings, transportation,
infrastructure and in many industrial applications. They provide
comfort, performance and safety while addressing the challenges of
sustainable construction, resource efficiency and climate
change.
EUR42.6 billion in sales in 2019
Operates in 68 countries
More than 170,000 employees
For more information about Saint-Gobain
Visit www.saint-gobain.com
and follow us on Twitter @saintgobain
Analyst/Investor relations Press relations
+33 1 47 62 +33 1 47 62 30
44 29 10
+33 1 47 62 +33 1 47 62
Vivien Dardel 35 98 Laurence Pernot 51 37
Floriana Michalowska +33 1 47 62 Patricia Marie +33 1 47 62
Christelle Gannage 30 93 Susanne Trabitzsch 43 25
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