Saint-Gobain: First-Quarter 2014 Sales Sales at €9,874 million powered by good organic growth PR Newswire PARIS, April 29, 2014 PARIS, April 29, 2014 /PRNewswire/ -- oOrganic growth at 6.8%, driven partly by favorable weather conditions in Europe 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 Saint-Gobain, said: "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 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 BUSINESS SECTOR Innovative 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 High-Performance Materials 1,014 1,018 0.4% (0.6%) 5.4% 1,014 Construction 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 Packaging (Verallia) 835 822 (1.6%) (1.6%) 2.2% 835 Internal sales and misc. (234) (241) --- --- --- (236) GEOGRAPHIC AREA 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 emerging countries. 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 market. 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 €207million. 2014 outlook 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 organic growth. 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 solutions. 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. Financial calendar First-half 2014 results: July 30,2014, after close of trading on the Paris Bourse. Analyst/Investor relations Gaetano Terrasini +33-1-47-62-32-52 Vivien Dardel +33-1-47-62-44-29 Press relations Sophie Chevallon +33-1-47-62-30-48 Susanne Trabitzsch +33-1-47-62-43-25 SOURCE Saint-Gobain
Saint-Gobain: First-Quarter 2014 Sales
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