The Saint-Gobain Group delivered consolidated sales of €30,925 million during
the first nine months of 2006, an increase of 20.1% on a reported basis and of
19.1% at constant exchange rates (based on average exchange rates for the first
nine months of 2005).
Oct 24, 2006
The contribution from acquisitions, net of disposals, accounted for an increase of
12.8%. The Gypsum division (formerly BPB) posted a 13.3% rise in sales over the
nine months period, to €2,931 million.
Organic growth for the first nine month came in at 6.3% on a like-for-like basis
(comparable Group structure and exchange rates), fuelled by continuous sales price
rises (up 3.3%) and on-going satisfactory growth in volumes (up 3.0%). The robust
trading performance recorded in the first six months of the year (up 6.3% for firsthalf
2006) continued throughout the third quarter (up 6.2%), enabling the Group to
maintain organic growth for the nine months at the same level as for first-half
2006.
Each of the Group's five business sectors reported a notable advance in like-for-like
sales over the first nine months of 2006.
Businesses related to construction markets, in particular, continued to post overall
healthy growth figures, boosted by the impact of new European regulations on
energy efficiency in the building industry and by the upswing in Germany. In
Europe, vigorous construction markets (new residential and commercial
construction and renovation spending) balanced the impact of the slowdown in US
housing starts, which broadly evolved in line with the Group's economic
assumptions for full-year 2006.
Businesses exposed to household consumption and industrial production markets
remain on the growth track.
The Building Distribution sector posted a sharp increase in sales on a reported
basis (up 13.3% over the first nine months and up 11.9% in the third quarter),
including contributions from recent acquisitions, particularly Sanitas-Troesch and
Optimera, which were consolidated with effect from March 1, 2005 and August 1,
2005, respectively. Organic growth for the nine-month period (5.7%) picked up
pace compared with the first six months of 2006, thanks to a very good third quarter
(+6.3% organic growth), buoyed by brisk business conditions in French and
Scandinavian markets, the upswing in the German market and a more favorable
trading environment in the UK.
High-Performance Materials generated sustained like-for-like sales growth
(3.8% over the nine months to September 30, 2006 and 4.3% over the third
quarter). Sales reported by the Ceramics, Plastics and Abrasives businesses
expanded 3.3% over the first nine months (with a high basis for comparison in
2005), while Reinforcement sales climbed 5%, chiefly in terms of volumes.
The Flat Glass sector notched up a significant rise in sales at comparable
structure and exchange rates (up 5.7% over the first nine months of 2006, and
up 8.8% over the third quarter). This performance was bolstered by strong
construction markets which, in the third quarter, saw significant price rises in
Europe, coupled with robust business levels in Europe and in most emerging
countries. The automotive market continued to present a mixed overall picture.
Like-for-like Packaging sales inched up a moderate 2.9% over the nine-month
period, and 2.0% in the third quarter, reflecting the sustained organic growth of
the Flasks business (4.8% over the nine-month period) and the benefits reaped by
the Bottles & Jars businesses from price increases in both Europe and the US.
The Construction Products (CP) sector continued to register very significant
like-for-like growth (10.3% over the nine-month period and 7.6% in the third
quarter). The interior building solutions businesses (Gypsum and Insulation)
reported very strong overall organic growth figures (12.2% over the nine-month
period), powered by vigorous residential and commercial construction markets,
measures designed to promote energy efficiency, and good price levels. The strong
growth momentum experienced by the Pipe division continued apace, coming in at
14.1%, on the back of robust sales volumes and a healthy order book both in
Europe and for exports. The Building Materials division posted further organic
growth gains in Europe through the Industrial Mortars business, while on-going
sharp increases in sales prices in the US since the beginning of the year more than
offset the fall-off in volumes observed on the US market in recent months.
By geographic area, like-for-like growth remained buoyant in France (5.3% over
the nine first months) and accelerated in other western European countries (5.8%
over the nine-month period, of which 6.2% in the third quarter). The upswing in the
German economy – which currently accounts for 10.7% of Group sales – took hold
and picked up pace, with organic growth of 5.3% over the nine-month period, and of
8.6% in the third quarter. Growth slowed in the United States (16.0% of Group
sales), as anticipated (5.7% over the first nine months of 2006 and 2.2% in the third
quarter).
Emerging countries and Asia-Pacific put in another strong performance,
particularly Eastern Europe and Latin America, with aggregate organic growth of
11.9% over the nine months to September 30, 2006, and of 14% in the third quarter.
Update on asbestos claims in the United States: Some 2,000 new claims were
filed against CertainTeed in the third quarter of 2006. Over the first nine months of
the year, approximately 6,000 new claims were filed, compared with 12,000 in the
same period of last year Since the beginning of the year, 10,000 claims have been
resolved, including 2,000 in the third quarter. The number of claims outstanding at
September 30, 2006 remained stable in relation to end-June 2006, at 86,000. The
average cost per claim settled in the last 12 months or in the process of settlement
came in at USD 2,800, above the end-June 2006 figure due to fewer mass actions
as a proportion of total claims.
Outlook and targets: the Group confirms its targets for full-year 2006:
- an increase of 27% - 28% in operating income at constant exchange rates
(average rates for full year 2005),
- 25% - 26% growth in net income excluding capital gains.
Forthcoming results announcements:
>> Estimated 2006 results: Thursday, January 25, 2007, after close of trading on
the Paris Bourse.
Investor Relations department
Florence Triou-Teixeira Tel.: +33 1 47 62 45 19
Alexandre Etuy Tel.: +33 1 47 62 37 15
Fax: +33 1 47 62 50 62
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