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[February 2008]
IMERYS 2007 Results
The Board of Directors of Imerys, meeting under the chairmanship of Aimery Langlois-Meurinne, examined the definitive financial statements for 2007 as presented by CEO Gérard Buffière. The statements will be put to the Shareholders’ General Meeting on 30 April 2008 for approval.
Throughout 2007, Imerys benefited from healthy markets overall, driven by the rapid development of emerging economies. That vitality also supported demand for industrial goods exported by developed economies (Western Europe and USA), a trend which the group was able to benefit from. Construction markets showed positive trends in France and Europe in general, but recorded a sharp downturn in the USA. The depreciation of the US dollar against the euro increased.
Highlights
In 2007, the group accelerated its development, improving the competitiveness of its existing businesses and implementing an active acquisitions policy which strengthens its positions in emerging economies :
Twelve external growth operations were carried out in 2007, one of which – Astron China – was finalised on 5 February 2008. These operations broadened the group’s minerals portfolio and strengthened its positions in high growth zones, particularly Asia-Pacific. They will contribute to its growth in 2008.
In parallel, as previously announced, capital expenditure was especially high reflecting the group's confidence in its growth strategy, with €367 million (booked capital expenditure) invested to implement major programmes designed to improve industrial performance in kaolins for paper and in Minerals for Filtration, to selectively expand production capacities and to acquire new mineral reserves.
Performance
Imerys further improved in 2007 its operating performance.
The group reported a 3.5% rise in sales compared with 2006, i.e. +4.2% at comparable group structure and exchange rates, with particularly dynamic growth of +22% in emerging economies which now account for 20% of the group’s sales. Current operating income increased by 4.3% thanks to a better product offering and higher sales volumes, i.e. +7.9% at comparable group structure and exchange rates. Net income from current operations grew for the 16th year running with a 2.7% increase. Per share, it increased by 3.0%.
At the Shareholders’ General Meeting on 30 April 2008, the Board of Directors will propose payout of a dividend of €1.90 per share, compared with €1.80 for 2006 (up 5.6%). The total amount of approximately €120 million represents 37.9% of the group's share of net income from current operations. The dividend will be paid on 13 May 2008.
Outlook
Gérard Buffière said: “Imerys is reporting growth in its results for the 16th year in succession. This ability to progress in a volatile environment reflects the Group’s sound business model and its responsiveness.
“2007 was another year of intense mobilization for our people: action plans were implemented to improve competitiveness in our kaolin and filtration activities; significant capital expenditures were dedicated to develop our industrial tool and our mineral reserves; 12 new companies joined us, strengthening our positions in the regions of the world with the most promising growth outlook. We also took advantage of favorable financial market conditions in the 1st half of 2007 to refinance and ensure long-term resources.
“So it is with confidence that we view 2008. In an economic environment that remains uncertain, Imerys is stronger and better equipped than it was at the beginning of 2007 to further improve its performance.
“With that aim in mind, I have decided to modify the organization to leverage product and sales synergies between Performance Minerals and Minerals for Filtration. Moreover, Jérôme Pecresse is appointed Chief Operating Officer of Imerys in order to assist me with our further development.”
ENDS