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[May 2004]
Imerys Confirms Growth Momentum in First Quarter
For the first quarter of 2004, Imerys Group announced consolidated sales of €687.3 million, up 0.5% on the first quarter of 2003. Operating income was €94.1 million, up 11.5% from the €84.4 million recorded in Q1 2003. Net income from recurring operations (before non-recurring items and goodwill amortisation) was €53.9 million, up 14.4%.
Imerys said that the increase in operating income - much greater than the growth in sales - reflected the intrinsic improvement in the group's operating performance and explained the sharp rise in net income from recurring operations. It went on to say that in a market environment which only slightly grew overall, a good commercial performance and continued cost reduction efforts more than offset the negative impact of external factors, such as exchange rates. The trend in sales was positive in every business group, most significantly in Building Materials, which benefitted from an exceptionally favourable basis of comparison (slack French construction market in Q1 2003).
The Building Materials business group's sales improvement of 11.2% reflected the combined impact of sharp growth in sales volumes - both in clay roof tiles and bricks in France and in distribution and slates - and a better price/mix component, particularly thanks to new product development policy.
Refractories & Abrasives saw contrasting markets, with an upturn in refractories - due to a significant drop in imports into Europe and the USA of steel and refractory products, particularly from China - and continued difficult business in abrasives. At comparable perimeter and exchange rates, sales grew by 3.3% over the period, reflecting improvement in the price/mix component and the slight growth in sales volumes.
In Specialty Minerals, demand was healthy overall on performance minerals, particularly in North America, while European fine ceramics markets (porcelain, sanitaryware and floor tiles) were difficult. Overall, sales increased by 3.4% in this business segment.
ENDS