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[Nov 2006]
Nine-Month Figures from Saint-Gobain
The Saint-Gobain Group delivered consolidated sales of €30.925 billion 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).
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 billion.
Organic growth for the first nine months 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 first-half 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 1 March 2005 and 1 August 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 favourable trading environment in the UK.
High-Performance Materials generated sustained like-for-like sales growth (3.8% over the nine months to 30 September 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 in the US market in recent months.
The Group confirmed 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.
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ENDS