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[March 2004]
Imerys 2003 Results
Imerys said that in 2003, despite unfavourable trends in several external factors (particularly exchange rates and energy costs), it substantially improved its main financial indicators. Net income from recurring operations grew for the 12th year in a row; operating margin improved further, from 12.6% in 2002 to 13.6% in 2003; and financial debt was reduced again, from 78.8% of shareholders' equity as of 31 December 2002 to 69.9% as of 31 December 2003.
Chairman Gerard Buffiere stated: "In 2003, our net income from recurring operations improved for the 12th straight year. We successfully focused our efforts on cost control and improvements of return on invested capital. Imerys is structurally stronger after two years with an unfavourable macroeconomic environment and enters 2004 with confidence".
In Specialty Minerals, the business group's main end markets were contrasted, with dynamic business in most construction-related segments in Europe and the USA, an improvement in floor tiles but continued poor conditions in tableware in Europe and a general decline in the automotive sector.
In Building Materials, despite difficult weather conditions early in the year, the French clay roof tiles market grew in 2003 thanks to a dynamic renovation sector. Clay products also continued to win market share from concrete in building bricks.
In the Refractories & Abrasives business, several of the main end markets remained poor in refractories - particularly steel - while conditions were difficult in abrasives.
In Pigments for Paper, Imerys noted that printing and writing paper markets grew overall in 2003 but with significant differences between geographical zones.
Group consolidated sales were down 4.7% at €2.7292 billion, a decrease more than entirely explained by currencies depreciation, which had a negative impact of €228.8 million. The impact of changes in group structure, on the other hand, was very limited (+0.5%) and took into account two items with opposing effects. These were the contribution to sales of acquisitions made in 2002, for the largest part, but also in 2003, set against the negative impact of minor divestments or shutdowns carried out in calcium carbonates in North America in 2002 and in Specialty Minerals and Refractories & Abrasives in 2003.
At comparable Group structure and exchange rates, group sales increased by 2.8%. This growth resulted from improvement in both sales volumes, up 1.8%, and the price/mix component, up 1%, in all four business groups.
Operating income was up 2.8% to €371.7 million. This positive current trend was obtained thanks to the impact of higher sales volumes (contributing improved income up €34.3 million); improved price/mix component (contributing an extra €27.2); and actions taken on production costs and overheads, which were maintained very much under control.
ENDS