Saint-Gobain: First-Quarter 2014 Sales
Sales at €9,874 million powered by good organic growth
PARIS, April 29, 2014
PARIS, April 29, 2014 /PRNewswire/ --
oOrganic growth at 6.8%, driven partly by favorable weather conditions in
oSales prices remain upbeat, gaining 1.2%
oNegative currency impact of 3.7%
oOngoing gradual improvement in our Western European markets except in
France; continued vigorous momentum in Asia and emerging countries
oMarkets in North America robust, but affected by harsh winter weather
Pierre-André de Chalendar, Chairman and Chief Executive Officer of
"Good first-quarter trading reflects favorable trends in our markets as well
as the positive weather impact in Europe. In view of this and thanks to the
roll-out of our action plan priorities, we can confirm our objective of a
clear like-for-like improvement in operating income."
Consolidated sales came in at €9,874million, up2.6%, or 6.8% like-for-like
(constant exchange rates and Group structure).
Exchange rates continued to have a negative impact (-3.7%), especially in
industrial Business Sectors, due to the depreciation of certain currencies
(mainly in Latin America, the US and Scandinavia).
Changes in Group structure had a slightly negative impact of -0.5%.
Volumes climbed 5.6%, buoyed by upward trends on our markets and a very
favorable basis for comparison in terms of weather conditions in Europe.
Working days had a slightly positive impact of around 0.7%.
Thanks to the Group's priority focus on sales prices, the price effect was a
positive 1.2%, including 1.8% for industrial Business Sectors amid low raw
material and energy cost inflation.
Change on a
Sales an actual comparable Sales
Q1 2013 Sales structure structure Like-for-like Q1 2013
EURm Restated* Q1 2014 basis basis change Published
Materials 2,175 2,175 0.0% (0.5%) 4.9% 2,211
Flat Glass 1,163 1,159 (0.3%) (0.3%) 4.5% 1,200
Materials 1,014 1,018 0.4% (0.6%) 5.4% 1,014
Products 2,736 2,757 0.8% 2.1% 7.4% 2,754
Interior Solutions 1,367 1,452 6.2% 6.2% 10.9% 1,367
Exterior Solutions 1,381 1,318 (4.6%) (2.1%) 3.9% 1,399
Building Distribution 4,110 4,361 6.1% 6.6% 8.1% 4,110
(Verallia) 835 822 (1.6%) (1.6%) 2.2% 835
Internal sales and
misc. (234) (241) --- --- --- (236)
France 2,790 2,872 2.9% 2.8% 2.8% 2,803
Other Western European
countries 3,798 4,150 9.3% 9.2% 10.2% 3,804
North America 1,552 1,436 (7.5%) (5.4%) (1.4%) 1,556
Emerging countries and
Asia 1,908 1,905 (0.2%) 0.6% 14.5% 1,943
Internal sales (426) (489) --- --- --- (432)
GROUP 9,622 9,874 2.6% 3.1% 6.8% 9,674
* 2013 figures restated to reflect the impacts of the amended IFRS 11.
^[^1^] Including inter-division eliminations.
^[^2^] Including Verallia North America, which will be deconsolidated with
effect from April 11, 2014.
Like-for-like performance of Group Business Sectors
Innovative Materials sales advanced 4.9%.
oFlat Glass confirmed its recovery (up 4.5%), driven by brisk automotive
markets in all regions. The construction market in Western Europe improved
slightly in volume terms, although sales prices do not yet reflect the
increases currently being implemented. Asia and emerging countries
continued to enjoy very strong momentum.
oHigh-Performance Materials(HPM) delivered 5.4% organic growth powered by
Asia and emerging countries as well as Western Europe, across all of its
businesses. North America was down slightly due to the decline in Ceramics
and the negative impact of harsh winter weather.
Construction Products(CP) sales rose 7.4%, buoyed by Europe and by Asia and
oInterior Solutions reported a 10.9% rise in sales and had a very good
quarter in all of its regions. The US remained on an upward trend in terms
of both prices (particularly for plasterboard) and volumes, spurred by
good momentum in construction markets. Asia and emerging countries put in
another very good performance. Volumes were up in all Western European
countries, aided by favorable weather conditions.
oExterior Solutions posted a 3.9% increase in sales, bolstered by strong
growth in Industrial Mortars in all of its regions and healthy trading in
Pipe. US Exterior Products reported gains in March, after a very tough
start to the year caused by the harsh winter weather.
Building Distribution sales rallied strongly, up 8.1%, boosted by much better
weather than in first-quarter 2013 and by the gradual improvement in most
construction markets in Europe. The UK, Germany, Nordic countries and Eastern
Europe delivered a strong first-quarter performance. France was up only
slightly against weak first-quarter 2013 comparatives. Solid renovation
activity offset the sharp contraction in new-builds. Brazil contributed to the
Business Sector's good growth.
Packaging(Verallia) delivered 2.2% organic growth, driven mainly by volumes
both in Europe and in Latin America. Sales prices are upbeat in Latin America
in a highly inflationary environment but fell slightly in some European
countries due to competitive pressure. The Group's North American business -
whose sale was finalized on April 11, 2014 and which will be deconsolidated
with effect from that date - performed in line with first-quarter 2013.
Like-for-like analysis by geographic area
In accordance with the scenario described in February:
oIn France (up 2.8%), sales were lifted by improved renovation activity and
by the favorable weather impact, but continued to suffer from a
contraction in the market for new-builds.
oIn otherWesternEuropean countries, sales climbed 10.2%, with the rise
amplified by better weather conditions. All countries reported gains,
particularly Germany, the UK and to a lesser extent Scandinavia.
oNorth America reported a 1.4% fall in sales. Harsh winter weather hit
Exterior Products and certain industrial businesses particularly hard.
Interior Solutions continued to report vigorous trading in a buoyant
oAsiaand emerging countries posted 14.5% sales growth and continued to
deliver an excellent performance in all regions, despite fears of a
slowdown in certain countries.
Update on asbestos claims in the US and on the automotive glass fine
Some 1,000 claims were filed against CertainTeed in the first quarter of 2014,
on a par with the same period in 2013. At the same time, around 1,000 claims
were settled, also in line with 2013. As a result, the total number of
outstanding claims is stable compared with end-2013, at 43,000.
Further to the decision of the General Court of the European Union to reduce
the automotive glass fine from €880 million to €715 million, the Group decided
it would pay the fine, leading to a write-back of the provision for
The first quarter confirms that the uptrends first seen in the second half of
2013 should continue throughout 2014:
oIn Western Europe, after a first quarter boosted by very favorable weather
conditions, our markets should continue to improve gradually, led by
growth in the UK and Germany.
oIn North America, after a first-quarter performance affected by harsh
winter weather, the Group will benefit from good momentum in the
construction market and improved industrial markets.
oIn Asiaand emerging countries, our businesses should deliver solid
oLastly, household consumption markets, more challenging in Southern
Europe, could continue to be affected by competitive pressure on prices.
The Group is therefore confirming its action plan priorities for the year:
oincreasing sales prices amid low raw material and energy cost inflation;
opursuing cost cutting measures in order to unlock additional savings of
€450million (calculated on the 2013cost base);
ostepping up capital expenditure to around €1,500 million, the priority
being growth capex outside Western Europe (around €550 million) and
businesses with reduced capital intensity;
omaintaining its commitment to invest in R&D in order to support its
strategy of differentiation and the roll-out of high value-added
Thanks to the roll-out of these measures and to the better trends in our
various markets observed as from the second half of 2013, wecontinue
toexpect a clear improvement in operating incomeon a comparable structure
and currency basis.
First-half 2014 results: July 30,2014, after close of trading on the Paris
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