PARIS, April 28, 2015 /PRNewswire/ --
First-quarter 2015 sales
Sales stable at €9,859 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
€9,859 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.
Change on
Change on a
an actual comparable
Sales Sales structure structure Like-for-like
EURm Q1 2014 Q1 2015 basis basis change
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 €400 million (calculated on
the 2014 cost base) thanks to its ongoing cost
cutting program;
- pursueacapital expenditure
program of under
€1,600 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.
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
(http://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
http://www.saint-gobain.com.
Analyst/Investor relations Press relations
Gaetano Terrasini +33-1-47-62-32-52
Vivien Dardel +33-1-47-62-44-29 Sophie Chevallon +33-1-47-62-30-48
Marine Huet +33-1-47-62-30-93 Susanne Trabitzsch +33-1-47-62-43-25
SOURCE Saint-Gobain