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[August 2005]
Imerys First Half Figures
Profit from current operations at Imerys was virtually stable in the second quarter of 2005 and rose by 2.8% for the first half of the year, with significant improvement in performance for three of the group's four businesses - more than offsetting the short-term decrease at Pigments for Paper, caused principally by high inflation in variable costs and a strike at Finnish papermakers.
Consolidated sales for H1 2005 totalled 1.4863 billion, up 3.1%. After firm sales growth in Q1 2005 of 9.6%, a decrease of 2.8% was recorded in Q2 due to the divestment of Lariviere. At comparable group structure and exchange rates, sales grew by 3.3%.
Profit from current operations in H1 2005 were 218.4 million, an increase of 2.8%. Operating margin held out well, remaining stable at 14.7%.
The group's share of net income from H1 recurring operations totalled 137.5 million, compared with 124.9 million for the same period in 2004, representing a 10.1% increase.
Within the Specialty Minerals business group, Imerys noted that ceramic markets were stable in Europe, except for the porcelain tableware segment which continues to be affected by the industry's gradual relocation to Asia. In advanced solution businesses - under which Imerys lists graphite, kiln furniture, etc - markets were healthy overall. In the UK, a lot of focus is being put on the reduction of mining and processing costs for the Devon and Cornwall deposits.
Within the Building Materials business group, Imerys reported that a new clay roof tile unit came on stream in June at the Sainte-Foy-l'Argentiere plant in France to meet demand more fully. Development also continued in brick in France, with the Colomiers plant's manufacture of long products and vertical perforated bricks enhancing Building Materials' offering. Additionally, a new brick production line is under construction in Mably with start-up scheduled for the end of the year. In this segment, Imerys disposed of specialised roofing distributor Lariviere on 19 April 2005.
The highlight at Refractories & Abrasives was the acquisition on 1 January 2005 of Lafarge Refractaires, a European leader in the production and sale of acid monolithic refractories. Imerys said that the integration of this acquisition with its Plibrico subsidiary was progressing as expected and the new entity had been renamed Calderys. All industrial and sales teams have been merged and Imerys feels that the combination should generate significant synergy. The acquisition of South Africa's QA Refractories in May enhanced this business group's position in the sector outside Europe.
Imerys has now also confirmed adjustments to its operating structure. World Minerals, acquired just a couple of weeks ago, was consolidated into Imerys accounts as from 15 July 2005. Its integration, together with the other changes in Group structure during the financial year, will lead to an adjustment in operating structures intended to align them with the management structures.
So, a new Materials & Monolithics business group is created, comprised of the (former) Building Materials business group and the Monolithic Refractories division of Refractories & Abrasives - both of these having been managed by Christian Schenck since the acquisition of Lafarge Refractaires.
World Minerals is to be integrated into a new Refractories, Abrasives & Filtration business group. The managers of each of the three divisions will report directly to CEO Gerard Buffiere.
ENDS