TIDMCOD
RNS Number : 5951L
Compagnie de Saint-Gobain
28 April 2015
Paris, April 28, 2015
First-quarter 2015 sales
Sales stable at EUR9,859 million
-- Organic growth at a negative 1.2% against a high-volume
comparison basis; positive 0.3% price effect in a low-inflation
environment
-- Significant 4.2% positive currency impact; negative 3.2%
Group structure impact related chiefly to the disposal of Verallia
North America
-- Continued upbeat trends in Asia and emerging countries
-- Business in Western Europe dampened by the downturn in the
French market and a tough basis for comparison, particularly in
Germany; good growth in the UK, Scandinavia and Spain
-- Robust construction markets in North America, but Roofing
volumes down due to the absence of stockpiling typically seen at
the beginning of the year
Pierre-André de Chalendar, Chairman and Chief Executive Officer
of Saint-Gobain, said:
"Our figures for the first quarter are in line with our
forecasts, given the tough basis for comparison. Over the rest of
the year, we expect to see a gradual improvement, particularly in
Germany and in Roofing in the US. Construction markets in France
will remain challenging in 2015. In this setting and thanks to our
ongoing cost cutting program, we can confirm our objective of a
further like-for-like improvement in operating income."
Consolidated sales were stable at EUR9,859 million.
Like-for-like (constant Group structure and exchange rates) sales
slipped 1.2%.
Changes in Group structure had a negative 3.2% impact,
essentially reflecting the disposal of Verallia North America
(VNA).
The fall in the value of the euro against certain currencies -
particularly the US dollar and Pound sterling - resulted in a
significant 4.2% positive currency impact.
Volumes were down 1.5% on first-quarter 2014, which had been
boosted by particularly mild winter weather in Europe.
Prices had a positive 0.3% impact amid a small rise in raw
material costs and energy deflation.
EURm Sales Sales Change Change Like-for-like
Q1 2014 Q1 2015 on an actual on a comparable change
structure structure
basis basis
--------- -------------- -----------------
BUSINESS SECTOR
Innovative Materials(1) 2,175 2,385 9.7% 9.8% 2.0%
Flat Glass 1,159 1,285 10.9% 10.8% 5.8%
High-Performance Materials 1,018 1,104 8.4% 8.8% (2.2%)
Construction Products(1) 2,757 2,833 2.8% 3.1% (3.0%)
Interior Solutions 1,452 1,541 6.1% 6.1% 0.9%
Exterior Solutions 1,318 1,307 (0.8%) (0.1%) (7.2%)
Building Distribution 4,361 4,315 (1.1%) (0.8%) (2.6%)
Packaging (Verallia) 822 550 (33.1%) 0.9% 2.5%
Internal sales and misc. (241) (224) --- --- ---
GEOGRAPHIC AREA
France 2,872 2,731 (4.9%) (4.7%) (4.7%)
Other Western European
countries 4,150 4,275 3.0% 3.2% 0.9%
North America 1,436 1,245 (13.3%) 9.0% (9.7%)
Emerging countries and
Asia 1,905 2,087 9.6% 9.4% 4.0%
Internal sales (489) (479) --- --- ---
--------- --------- -------------- ----------------- --------------
GROUP 9,874 9,859 (0.2%) 3.0% (1.2%)
--------- --------- -------------- -----------------
(1) Including inter-division eliminations.
Like-for-like performance of Group Business Sectors
Innovative Materials sales advanced 2.0%.
- Flat Glass continued to rally, up 5.8%. Automotive glass
reported robust growth in all geographic areas except Brazil. The
construction market remains bullish in Asia and emerging countries,
but contracted in Western Europe where prices remained stable.
- High-Performance Materials (HPM) sales declined 2.2%. Asia and
emerging countries reported growth against a tough basis for
comparison. The decline in Ceramics dented performance mainly in
North America, which was hard hit by the collapse in sales of
proppants linked to the shale oil market crisis in the US.
Construction Products (CP) sales were down 3.0%, hurt by
Exterior Products in the US and Interior Solutions in France and
Germany.
- Interior Solutions saw sales edge up 0.9%. Volumes held firm
in Western Europe despite a sharp contraction in the construction
market in France and the base effect in Germany; there was further
downward pressure on prices in a deflationary environment. Asia and
emerging countries confirmed their good performance, except in
Japan. Construction markets remained upbeat in the US.
- Exterior Solutions sales fell 7.2%, hard hit by Exterior
Products in the US. The lack of the usual promotional campaign in
Roofing dragged down volumes but enabled prices to hold firm.
Growth in Mortars was curbed by a tough basis for comparison in
Europe. Pipe continued to rally, buoyed by export contracts.
Building Distribution sales were down 2.6% against a strong
first-quarter 2014, when sales had risen 8.1% on the same
prior-year period. France continued to suffer from a sharp
contraction in new-builds and a sluggish renovation market. Germany
retreated mainly due to a very unfavorable base effect. The UK,
Nordic countries and Brazil posted good growth.
Packaging (Verallia) reported 2.5% organic growth. In Europe,
the 3.4% rise in volumes confirmed the recovery in a competitive
pricing environment. Latin America reported further good sales
growth thanks solely to price trends reflecting the impact of
inflation.
Like-for-like analysis by geographic area
In accordance with the scenario outlined in February:
- France saw sales decline 4.7% as it continued to suffer from a
deteriorating construction market.
- Other Western European countries reported 0.9% sales growth,
affected by a 6.1% decline in Germany against an extremely tough
basis for comparison; the UK, Scandinavia and Spain reported good
growth.
- North America was down 9.7% due to the Roofing and Ceramics
businesses, despite continued good momentum in Interior
Solutions.
- Asia and emerging countries saw sales increase 4.0%: Latin
America and Eastern Europe continued to perform well, while Asia
was down slightly due to Japan.
2015 outlook
After a first quarter characterized by tough 2014 comparatives,
the Group maintains its outlook for 2015 as a whole:
- Western Europe should recover gradually, hampered by the
decline in France and a continuing uncertain outlook in
Germany.
- North America should advance despite a first quarter down on
2014, buoyed by upbeat trends in construction markets; the Roofing
business should gradually improve.
- Our businesses in Asia and emerging countries should deliver good organic growth.
- Household consumption markets should see a slight uptick in Europe.
The Group confirms its action plan priorities:
- keep its priority focus on increasing sales prices amid a
small rise in raw material costs and energy deflation;
- unlock additional savings of EUR400 million (calculated on the
2014 cost base) thanks to its ongoing cost cutting program;
- pursue a capital expenditure program of under EUR1,600 million;
- renew its commitment to invest in R&D in order to support
its differentiated, high value-added strategy;
- pursue the divestment of Verallia, which is continuing as
planned with offers expected in second-quarter 2015
- pursue its plan to acquire a controlling interest in Sika.
In this context, Saint-Gobain expects a further like-for-like
improvement in operating income for 2015 and a continuing high
level of free cash flow.
Financial calendar
First-half 2015 results: July 29, 2015, after close of trading
on the Paris Bourse.
Analyst/Investor relations Press relations
+33 1 47 62
32 52
+33 1 47 62 +33 1 47 62 30
Gaetano Terrasini 44 29 48
Vivien Dardel +33 1 47 62 Sophie Chevallon +33 1 47 62 43
Marine Huet 30 93 Susanne Trabitzsch 25
--------------------- ---------------- -------------------------------------------- -----------------
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 further information, please visit www.saint-gobain.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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