TIDMCOD
RNS Number : 0812R
Compagnie de Saint-Gobain
24 October 2019
PRESS RELEASE
Paris, October 24, 2019, at 5:45pm
Sales for the first nine months of 2019
Organic growth at 3.4% for the nine-month period
2019 objectives confirmed
-- Organic growth at 3.4% for the nine-month period and at 3.1% in Q3
-- Volumes up 1.4% for the nine-month period and up 1.7% in Q3
-- Prices up 2.0% for the nine-month period and up 1.4% in Q3 in
a less inflationary cost environment
-- Positive currency impact of 0.7% for the nine-month period
and of 1.0% in Q3; positive Group structure impact of 0.2% for the
nine-month period and of 0.3% in Q3
-- 8.5 million shares bought back at the end of September 2019
Click on, or paste the following link into your web browser, to
view the announcement in full.
http://www.rns-pdf.londonstockexchange.com/rns/0812R_2-2019-10-24.pdf
Consolidated sales for the first nine months of 2019 were
EUR32,471 million compared to EUR31,130 million for the first nine
months of 2018.
The currency impact was positive at 0.7% over the nine-month
period and 1.0% in the third quarter, resulting mainly from the
appreciation of the US dollar against the euro, despite the
depreciation of the Nordic krona.
The Group structure impact added 0.2% to growth over the
nine-month period and 0.3% in the third quarter, reflecting the
integration of acquisitions in new niche technologies and services
(Kaimann in technical insulation), in Asia and emerging countries
(Join Leader in adhesives), and to consolidate our strong positions
(Hunter Douglas in specialty ceilings). The acceleration in our
divestment program is only partially reflected in the nine-month
period given the deconsolidation dates, in particular for the Pipe
business in Xuzhou, China, the silicon carbide business, glazing
installation operations in the UK and glass processing in Sweden
and Norway. After the recent finalization of new divestments, the
Group is deconsolidating its Distribution business in Germany,
Optimera in Denmark and K par K in France for the fourth quarter of
2019.
Like-for-like sales rose 3.4% over the nine-month period and
3.1% in the third quarter. Despite a less supportive market
overall, volumes were up 1.4% in the nine-month period, including a
rise of 1.7% in the third quarter with a positive 1.5% calendar
impact. Prices contributed 2.0% to growth over the nine-month
period and 1.4% in the third quarter in a less inflationary
environment for raw material and energy costs and with a higher
prior-year comparison basis.
The acceleration in the Group's transformation within the scope
of its new organization continues apace:
- Divestments completed or signed by Saint-Gobain to date in
order to enhance its growth and profitability profile represent
sales of over EUR3.1 billion. The Group is continuing its
divestment program even though the initial target of over EUR3
billion in sales divested by the end of the year has already been
met. The full-year operating margin impact is more than 40 basis
points, ahead of the target of the "Transform & Grow" program
of a gain of 40 basis points in the operating margin.
- The program to unlock EUR250 million in additional cost
savings by 2021 thanks to the new organization is producing results
faster than initially expected, allowing for an accelerated
timetable: over EUR80 million in cost savings for 2019 (versus an
initial target of over EUR50 million), of which EUR35 million in
first-half 2019, and overall savings of EUR150 million in 2020
(versus EUR120 million initially).
Segment performance (like-for-like sales)
High Performance Solutions (HPS) sales rose 0.9% over the
nine-month period and 0.8% in the third quarter in hesitant
industrial markets.
- Mobility sales grew slightly in an automotive market
environment that remained difficult but benefited from an easier
comparison basis in third-quarter 2018. The differentiating
strategy prioritizing high value-added products, in particular
those destined for electric vehicles, continues to pay off.
- Activities serving Industry reported a small decrease in sales
in the quarter in a slightly more uncertain environment in most
regions.
- Activities serving the Construction industry continued to rise
on both the Americas and European markets, buoyed by gains in
market share, good trends in external thermal insulation solutions
(ETICS) and recent acquisitions.
- Life Sciences continued to enjoy a strong growth dynamic.
Northern Europe advanced 3.0% over the nine-month period and
1.9% in the third quarter with a favorable calendar effect.
Distribution progressed, along with the industrial businesses and
especially Gypsum, while Building Glass stabilized.
Sales in Nordic countries continued to rise, particularly in
Distribution, benefiting from their exposure to the renovation
market, albeit at a slower pace than in the first half of the year.
The UK contracted amid a difficult economic environment,
particularly in Distribution in the third quarter. Sales in Germany
were up slightly despite a slowdown in volumes in the quarter;
Eastern Europe continued to advance.
Southern Europe - Middle East & Africa increased 4.2% over
the nine-month period and 3.7% in the third quarter with a
favorable calendar impact. Distribution continued to drive growth;
industrial businesses progressed, particularly Insulation, Gypsum
and Mortars, along with Building Glass to a lesser extent. Pipe
continued its successful efforts to improve competitiveness in a
difficult export market.
France had a good quarter, buoyed by a construction market where
renovation remained supportive and despite a lower contribution
from new construction; Distribution continued to grow, along with
Insulation which reported further double-digit growth on the back
of strong demand for energy-efficiency renovation. Other European
countries posted further growth, led by Spain. The Middle East and
Africa declined once again, particularly in Turkey in a very tough
environment.
The Americas posted 3.8% organic growth over the nine-month
period, including 6.1% in the third quarter.
North America rallied in the quarter on a weaker comparison
basis in terms of volumes but a much more difficult basis for
comparison in terms of pricing. Exterior Products posted strong
volume-driven growth, while prices decreased after the sharp rise
in the prior-year period. The pricing environment was favorable in
Insulation, but remained challenging in Gypsum, while volumes
improved slightly overall. After a good first half, Latin America
saw a significant slowdown in the quarter with weak overall growth,
particularly in Brazil in Building Glass in a more uncertain
macroeconomic environment.
Asia-Pacific delivered 5.8% organic growth over the nine-month
period and 4.7% in the third quarter, led by Gypsum and Mortars in
particular. Glass declined owing to lower plant utilization rates
given the contraction in the automotive market.
India posted robust growth, especially in Gypsum which continued
to deliver double-digit growth and in Building Glass to a lesser
extent. Regarding other Asian countries, China recorded a good
quarter, notably benefiting from the start-up of a new plaster
plant in the first half and strong growth in Mortars. South-East
Asia was driven by higher volumes but continued to face a fiercely
competitive environment putting pressure on sales prices.
Strategic priorities and outlook for 2019
The Group expects the following trends for the fourth
quarter:
- High Performance Solutions: in more hesitant markets, the
automotive sector is expected to remain difficult in Europe and
China but against an easier comparison basis;
- Northern Europe: less favorable trends overall, with a
particularly difficult environment in the UK; deconsolidation of
the Distribution business in Germany;
- Southern Europe - Middle East & Africa: overall growth
expected for the region, with a lower contribution from new
construction and a solid renovation market, in particular in
France;
- Americas: stabilization in North America and a more uncertain environment in Latin America;
- Asia-Pacific: further growth.
The Group's action priorities as defined in February remain:
- its focus on sales prices;
- its cost savings program with the aim of unlocking additional
savings for the year of around EUR300 million (calculated on the
2018 cost base), in addition to more than EUR80 million in 2019 as
part of the "Transform & Grow" program;
- its property, plant and equipment and intangible assets
investments program close to the 2018 level, with a focus on growth
capex outside Western Europe and also on productivity and continued
digital transformation;
- its commitment to invest in R&D to support its differentiated, high value-added strategy;
- its focus on high levels of free cash flow generation.
Saint-Gobain confirms its objectives for full-year 2019 and for
the second half expects a like-for-like increase in operating
income compared to second-half 2018.
Glossary:
Indicators of organic growth and like-for-like changes in
sales/operating income reflect the Group's underlying performance
excluding the impact of:
-- changes in Group structure, by calculating indicators for the
year under review based on the scope of consolidation of the
previous year (Group structure impact);
-- changes in foreign exchange rates, by calculating the
indicators for the year under review and those for the previous
year based on identical foreign exchange rates for the previous
year (currency impact);
-- changes in applicable accounting policies.
Operating income: see Note 4 to the financial statements in the
interim financial report, available by clicking here:
https://www.saint-gobain.com/en/finance/regulated-information/half-yearly-financial-report
EBITDA = operating income plus operating depreciation and
amortization, less non-operating costs excluding Sika
Free cash flow = EBITDA less depreciation of right-of-use
assets, plus net financial expense excluding Sika, plus income tax,
less investments in property, plant and equipment and intangible
assets excluding additional capacity investments, plus changes in
working capital requirement.
Financial calendar
- 2019 results: February 27, 2020, after close of trading on the
Paris Bourse.
Analyst/Investor relations Press relations
+33 1 47 62 44 +33 1 47 62 30
29 10
+33 1 47 62 35 +33 1 47 62 51
Vivien Dardel 98 Laurence Pernot 37
Floriana Michalowska +33 1 47 62 30 Patricia Marie +33 1 47 62 43
Christelle Gannage 93 Susanne Trabitzsch 25
------------------------ ------------------ -------------------------------------------- -----------------
A conference call will be held at 6:30pm (Paris time) on October
24, 2019: dial +33 (0) 1 72 72 74 03 followed by the code
32825992#.
Important disclaimer - forward-looking statements:
This press release contains forward-looking statements with
respect to Saint-Gobain's financial condition, results, business,
strategy, plans and outlook. Forward-looking statements are
generally identified by the use of the words "expect",
"anticipate", "believe", "intend", "estimate", "plan" and similar
expressions. Although Saint-Gobain believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions as at the time of publishing this document,
investors are cautioned that these statements are not guarantees of
its future performance. Actual results may differ materially from
the forward-looking statements as a result of a number of known and
unknown risks, uncertainties and other factors, many of which are
difficult to predict and are generally beyond the control of
Saint-Gobain, including but not limited to the risks described in
Saint-Gobain's registration document available on its website
(www.saint-gobain.com). Accordingly, readers of this document are
cautioned against relying on these forward-looking statements.
These forward-looking statements are made as of the date of this
document. Saint-Gobain disclaims any intention or obligation to
complete, update or revise these forward-looking statements,
whether as a result of new information, future events or
otherwise.
This press release does not constitute any offer to purchase or
exchange, nor any solicitation of an offer to sell or exchange
securities of Saint-Gobain.
For further information, please visit www.saint-gobain.com
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0812R_1-2019-10-24.pdf
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
QRTPGGGAUUPBGAC
(END) Dow Jones Newswires
October 25, 2019 07:18 ET (11:18 GMT)
Grafico Azioni Compagnie De Saint-gobain (LSE:COD)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Compagnie De Saint-gobain (LSE:COD)
Storico
Da Apr 2023 a Apr 2024
