Saint-Gobain: H1 2010: Sharp Upswing in Results
COURBEVOIE, France, July 29, 2010 /PRNewswire-FirstCall/ --
FIRST-HALF 2010 H1 2010 Change
KEY FIGURES (EURm) H1-10/H1-09
Sales 19,529 +4.3%
Operating income 1,445 +55.4%
Recurring net income (1) 580 +176.2%
Net income (2) 501 +291.4%
Free cash flowcubed 987 +79.5%
H1 2010: ROLL-OUT OF ACTION PLAN
- Sales prices +0.1% over the first half; +0.8% over the second
quarter
- Costs scaled back EUR450m over the first half; EUR600m over the year
- Free cash flowcubed after operating WCR: EUR1.9bn over 12 months
- EUR1.8bn of net debt paid down over 12 months; gearing ratio cut to
51%
- Expansion in Asia and emerging countries and in energy efficiency
markets
2010 OBJECTIVES:
- Strong growth in operating income (at constant exchange rates), with
second-half operating income slightly above the first half
- Free cash flowcubed: EUR1.4bn versus EUR1.0bn.
1. Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
2. Attributable to equity holders of the parent.
3. Excluding the tax effect of capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
Operating performance
After a first quarter affected by very cold winter weather in Europe, trading rebounded sharply overall in the second quarter of 2010, with the Group reporting 3.9% organic growth. This reflects both a significant upturn in sales volumes, which rose 3.1% after slipping 1.7% in the first quarter, boosted by a positive 1.4% impact due to the rise in the number of working days, and upward trends in prices, which gained 0.8% after falling 0.7% in the first quarter. All of the Group's Business Sectors and activities contributed to the upswing, reporting a gradual improvement in market conditions as from March. In the second quarter as in the first, organic growth continued to be driven overall by emerging countries and Asia, along with businesses related to industrial output (each reporting double-digit organic growth in the three months to June 30). Most of the Group's businesses linked to construction markets in Europe and North America also reported a relative improvement in trading over the second quarter, in terms of both volumes and sales prices, partly due to a favorable basis for comparison. Household consumption remained stable over the first half. Overall, the Group's organic growth for first-half 2010 came in at 1.0% (including a positive 0.9% volume impact and a positive 0.1% price effect).
Thanks to the cost savings achieved, Saint-Gobain's operating margin widened significantly, to 7.4% versus 5.0% for first-half 2009, with a positive contribution from all of the Group's major geographic areas.
1) Performance of Group Business Sectors
Innovative Materials delivered the Group's best organic growth performance, at 13.8%. Trading for the Sector gained momentum in the second quarter compared to the first (up 17.0% versus 10.4%). The rebound in markets linked to industrial output intensified over the three months to June 30, both in North America and Western Europe. The Business Sector was also buoyed by very strong growth in Asia and emerging countries throughout the first half. Together with the positive impact of the Group's restructuring programs, this helped drive a very significant rise in the Sector's operating margin to 10.4% from 2.7% in first-half 2009.
- Flat Glass reported a 10.1% rise in like-for-like sales over the first
half, following on from the 9.6% increase in the three months to March
30. This was powered by the strong rally in the global automotive
market and robust growth in Asia and emerging countries, which
accounted for 40% of the business' sales. In contrast, sales of Flat
Glass for the building industry in Western Europe continued to be hit
by sluggish construction markets, though they showed a relative
improvement in the second quarter. Despite the steep price increases
for commodity products (float glass) in Europe in first-half 2010,
sales prices for construction glass and for Flat Glass as a whole
remained slightly under 2009 levels, due mainly to the time-lag in
passing float glass price increases onto processed products. The
operating margin was up sharply, at 7.8% of sales versus 0.6% of sales
for first-half 2009.
- High-Performance Materials (HPM) like-for-like sales surged 19.1%
during the six months to June 30, powered by a 26.3% rise in the second
quarter. This reflects the increased pace of recovery in worldwide
industrial output over the three months to June 30, particularly in
North America and to a lesser extent in Europe. Although trading for
the business remained significantly below its pre-crisis level, the
strong upsurge in the operating margin owing to enhanced operating
leverage puts it virtually back to its first-half 2008 level, at 13.5%
of sales compared with 5.5% of sales in first-half 2009.
Like-for-like sales for Construction Products (CP) remained stable over first-half 2010, with the 2.9% sales advance in the second quarter fully offsetting the 3.3% drop in sales over the three months to March 30 due to very poor weather conditions. The Business Sector's operating margin continued on an upward trend, at 10.1% versus 9.1% in first-half 2009, thanks mainly to the cost savings achieved.
- Like-for-like sales for the Interior Solutions business slipped 3.6%
over the first half, but edged up 0.9% in the three months to June 30.
This chiefly reflects the relative improvement in market conditions
across North America and all of Europe over the last few months.
Markets in Asia and Latin America continued to enjoy vigorous growth
throughout the first half. Despite the sales price increases
implemented in the US during the second quarter, prices on average
remained slightly below the same year-ago period. Operating margin
remained stable, at 6.8% versus 6.7% in first-half 2009.
- Like-for like sales in the Exterior Solutions business rose 3.4% over
the first half, and 4.5% over the second quarter, buoyed by brisk
trading conditions in Asia and Latin America, and strong sales of
exterior products in the US, which offset the sales decline in Europe.
The rise in sales prices observed in the first quarter also gathered
pace in the three months to June 30, against a backdrop of rising raw
material costs. As a result, and thanks to the impact of restructuring
efforts, the operating margin continued to improve, up from 11.2% to
13%.
Building Distribution continued to be affected by persistently tough conditions on European construction markets throughout the first half and by very slack trading in the first two months of the year due to harsh winter weather. First-half sales for the Sector therefore fell 4.1% but were virtually flat in the second quarter (down 0.1%). This stability reflects widely contrasting trends across Europe: while trading recovered in the UK, Scandinavia and Germany, there was a further decline in Southern and Eastern Europe as well as in the Netherlands, and a more moderate slowdown in France. The Business Sector's operating margin improved, up to 2.4% of sales from 1.4% of sales in the year-earlier period, owing mainly to the cost savings achieved.
Packaging continued to report robust trading conditions and earnings, which remained broadly stable year-on-year. The Sector's operating margin narrowed slightly, to 12.9% of sales versus 13.4% of sales in first-half 2009, due to a more significant reduction in its inventories than in first-half 2009.
2) Analysis by geographic area
The analysis of trading by geographic area reveals a sharp contrast between (i) the Americas and Asia (27% of consolidated sales), which delivered overall double-digit growth in the first half, and (ii) Western and Eastern Europe, which continued to underperform first-half 2009, despite a slight 0.5% sales advance in the second quarter. However, profitability improved significantly across all regions, buoyed chiefly by the impact of cost reduction programs.
- In France and other Western European countries, like-for-like sales
fell 1.9% and 1.7%, respectively, over the first half, although organic
growth was respectively 1.1% and 1.7% in the second quarter. The strong
rebound in markets related to industrial output over the period as a
whole, and the gradual improvement in construction markets as from
March, failed to wholly offset the impact of cold winter weather in the
first two months of the year. The operating margin improved, in both
France and other Western European countries.
- North America posted organic growth of 11.4% over first-half 2010
(16.3% in the second quarter), bolstered by a sharp rally in businesses
linked to industrial output and a robust performance from all other
businesses except Interior Solutions, which suffered from continuing
weakness in construction markets. The region's operating margin, which
was also boosted by the restructuring measures completed, continued to
improve, up to 12.0% of sales versus 8.8% of sales in the same year-ago
period.
- Organic growth in emerging countries and Asia also picked up pace
during the second quarter, at 10.4% versus 8.3% in the three months to
March 30, reflecting both bullish conditions in Asia and Latin America
and the relative improvement in Central and Eastern European economies
- particularly Poland - in the second quarter as compared to the first.
The operating margin came in at 9.1% of sales, versus 4.5% one year
earlier.
Analysis of the interim consolidated financial statements for first-half 2010
The interim consolidated financial statements set out below were authorized for issue by the Board of Directors on July 29, 2010:
H1 2009 H1 2010 %
EURm EURm change
Sales and ancillary revenue 18,715 19,529 +4.3%
Operating income 930 1,445 +55.4%
Non-operating costs (264) (193) -26.9%
EBITDA (op. inc. + operating 1,686 2,220 +31.7%
depreciation/amortization)
Capital gains and losses on disposals and (65) (51) -21.5%
exceptional
asset write-downs
Business income 601 1,201 +99.8%
Net financial expense (412) (387) -6.1%
Income tax (53) (279) n.m.
Share in net income of associates 2 3 +50.0%
Income before minority interests 138 538 +289.9%
Minority interests (10) (37) +270.0%
Recurring net income(1) 210 580 +176.2%
Recurring1 earnings per share(2) (in EUR) 0.41 1.09 +165.9%
Net income (attributable to equity holders of 128 501 +291.4%
the parent)
Earnings per share (2) (in EUR) 0.25 0.94 +276.0%
Operating depreciation and amortization 756 775 +2.5%
Cash flow from operations(3) 1,079 1,431 +32.6%
Cash flow from operations excluding capital 1,064 1,419 +33.4%
gains tax(4)
Capital expenditure 514 432 -16.0%
Free cash flow (excluding capital gains tax)(4) 550 987 +79.5%
Investments in securities 164 36 -78.0%
Net debt 10,890 9,081 -16.6%
1 Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
2 Calculated based on the number of shares outstanding at June 30 (530,786,373 shares in 2010 versus 512,893,494 shares in 2009). Based on the weighted average number of shares outstanding (509,735,208 shares in first-half 2010 versus 439,305,156 shares in first-half 2009), recurring earnings per share comes out at EUR1.14 (EUR0.48 in first-half 2009), and earnings per share comes out at EUR0.98 (EUR0.29 in first-half 2009).
3 Excluding material non-recurring provisions.
4 Excluding the tax effect of capital gains and losses on disposals, asset write-downs and material non-recurring provisions.
Sales increased 4.3%, powered by a strong 3.0% positive currency impact. This reflects the appreciation of most other currencies against the euro, particularly Scandinavian currencies and currencies of the main emerging countries in which the Group operates - especially the Brazilian real. On a constant exchange rate basis*, sales therefore climbed 1.3%. Changes in the scope of consolidation had a mild 0.3% positive impact on sales. Like-for-like (constant Group structure and exchange rates), Group sales rose 1.0%, including a positive 0.9% volume impact and a positive 0.1% price effect.
Thanks chiefly to the cost savings achieved, the Group's operating income increased sharply compared to both first-half 2009 (up 55% or 50% at constant exchange rates*), and the six months to December 31, 2009 (up 12.4%). This fueled a steep rise in the operating margin, which climbed to 7.4% of sales (10.7% excluding Building Distribution), versus 5.0% of sales (7.6% excluding Building Distribution) in first-half 2009 and 6.7% (9.1% excluding Building Distribution) in the six months to December 31, 2009.
EBITDA (operating income + operating depreciation and amortization) moved up 31.7%. The consolidated EBITDA margin came in at 11.4% of sales (16.2% excluding Building Distribution), versus 9.0% (13.3% excluding Building Distribution) in first-half 2009.
Non-operating costs fell 26.9% to EUR193 million (EUR264 million in first-half 2009), thanks to lower restructuring costs. They also include a EUR37.5 million accrual to the provision for asbestos-related litigation involving CertainTeed in the United States (unchanged from first-half 2009).
The net balance of capital gains and losses on disposals and exceptional asset write-downs was a negative EUR51 million, including EUR58 million in exceptional asset write-downs. Most of these write-downs relate to restructuring plans and site closures initiated during the period.
Business income totaled EUR1,201 million for the period, twice the figure for first-half 2009 after taking into account the items mentioned above (non-operating costs, capital gains/losses on disposals and exceptional asset write-downs).
Net financial expense fell slightly to EUR387 million from EUR412 million in first-half 2009. This chiefly reflects the net debt reduction. The average cost of net debt in the first half of 2010 came out at 5.5%, versus 5.4% in the six months to June 30, 2009.
Income tax rose sharply from EUR53 million to EUR279 million, reflecting chiefly the rise in pre-tax income and, to a lesser extent, the business tax reform introduced in France as of January 1, 2010, which led the Group to reclassify the new CVAE ("Cotisation sur la Valeur Ajoutee des Entreprises") tax as income tax.
Recurring net income (excluding capital gains and losses, exceptional asset write-downs and material non-recurring provisions) leapt 176.2% year-on-year, to EUR580 million. Based on the number of shares outstanding at June 30, 2010 (530,786,373 shares versus 512,893,494 shares at June 30, 2009), recurring earnings per share came out at EUR1.09, up 165.9% on first-half 2009 (EUR0.41).
Net income surged 291.4% year-on-year to EUR501 million. Based on the number of shares outstanding at June 30, 2010 (530,786,373 shares versus 512,893,494 shares at June 30, 2009), earnings per share was EUR0.94, up 276% on first-half 2009 (EUR0.25).
Capital expenditure retreated 16.1% to EUR432 million (EUR514 million in the six months to June 30, 2009), accounting for 2.2% of sales (2.7% of sales in first-half 2009). Most of these investments (58%) related to energy efficiency (Flat Glass - including Solar Power - and Construction Products), and to selective growth projects in Asia and emerging countries.
Cash flow from operations totaled EUR1,431 million in first-half 2010, up 32.6% on the same period in 2009. Before the tax impact of capital gains and losses on disposals and asset write-downs, cash flow from operations climbed 33.4% to EUR1,419 million, up from EUR1,064 million in first-half 2009.
* Based on average exchange rates for first-half 2009.
Free cash flow (cash flow from operations less capital expenditure) jumped 77.0% to EUR999 million. Before the tax impact of capital gains and losses on disposals and asset write-downs, free cash flow was up 79.5% to EUR987 million, or 5.0% of sales (2.9% of sales in first-half 2009). Consequently, the Group has already virtually achieved its initial target of EUR1 billion in free cash flow for full-year 2010.
The difference between EBITDA and capital expenditure increased 52.6% to EUR1,788 million in first-half 2010, versus EUR1,172 million in the year-earlier period, representing 9.2% of sales (6.3% in first-half 2009).
After seven years of continuous improvements, operating working capital requirements (WCR) were further cut by 2 days (to 45 days' sales at June 30, 2010), despite the negative impact of the "LME" ("Loi de Modernisation Financiere") in France and the depreciation of the euro. This represents a cash gain of EUR421 million over 12 months.
Investments in securities totaled EUR36 million (down 78% on first-half 2009), and primarily related to acquisitions in solar power and energy efficiency as well as in emerging countries for the High-Performance Materials Sector.
Net debt stood at EUR9.1 billion at June 30, 2010, down EUR1.8 billion, or 16.6%, on June 30, 2009 (EUR10.9 billion) on the back of the strong free cash flow generated and the improvements in working capital requirements unlocked over the last 12 months. Net debt came out at 51% of shareholders' equity, compared with 67% at June 30, 2009. The net debt to EBITDA ratio came out at 2.1X, versus 2.7X a year earlier.
Update on asbestos claims in the US
Some 2,000 claims were filed against CertainTeed in the six months to June 30, 2010, as in first-half 2009. During the same period, 2,000 claims were settled (versus 3,000 in first-half 2009), bringing the total number of outstanding claims to 64,000 at June 30, 2010, stable compared to December 31, 2009.
A total of USD 96 million in indemnity payments were made in the United States over the 12 months to June 30, 2010, versus USD 77 million in the year to December 31, 2009.
Strong capacity to adapt to changes in the Group's markets
In a persistently fragile economic climate marked by sharply contrasting trends from one country to the next, in first-half 2010 Saint-Gobain again demonstrated its strong capacity to adapt to changes in its markets. The Group continued to scale back costs in businesses and/or countries still affected by lackluster markets, while leveraging development opportunities in businesses and countries enjoying fast-paced growth.
In the first half of 2010, Saint-Gobain:
- continued to give clear operating priority to sales prices,
which inched up 0.1% over the period and 0.8% in the second quarter.
- extended its cost cutting program across all of its
businesses:
- EUR450 million in additional cost savings were unlocked in
first-half 2010 compared with the six months to June 30, 2009,
including EUR400 million carried over from second-half 2009 and
EUR50 million regarding the program launched at the beginning of
2010 targeting additional savings of EUR200 million over the year;
- for full-year 2010, the Group confirms its target of EUR600
million in additional cost savings compared to 2009, bringing the
total cost savings realized in 2008, 2009 and 2010 to EUR2.1
billion.
- continued to optimize free cash flow generation, by:
- maintaining a tight rein on operating working capital
requirements (WCR), which fell by EUR421 million (a reduction of 2
days' sales) over the 12 months to June 30, 2010;
- generating EUR1,456 million in free cash flow over the 12
months to June 30, 2010 (excluding the tax impact of capital gains
and losses on disposals, exceptional asset write-downs and material
non-recurring provisions).
Accordingly, over the 12 months to end-June, the Group
exceeded its all-time high recorded at June 30, 2009 (EUR1,797 million),
and generated EUR1,877 million in free cash flow after operating WCR.
- curbed investment expenditure (capex and investments in
securities), which totaled EUR468 million, representing a reduction of
31% year-on-year.
- continued to reorganize its HPM portfolio, by selling its
"Advanced Ceramics" business** on very favorable financial terms, while
carrying out various acquisitions in emerging countries.
- Thanks to these measures, coupled with the payment of 72% of
the 2009 dividend in stock, the Group paid down EUR1.8 billion in net
debt (over one year) and strengthened its balance sheet: the gearing
ratio has been cut to 51% versus 67% at June 30, 2009.
- The Group's development in fast-growing businesses and
countries also continued apace in first-half 2010, accounting for 58% of
its capital expenditure.
In the second half of the year, the Group will continue to resolutely pursue its policy of adapting to change on an ongoing basis.
Outlook and objectives for full-year 2010
After broadly encouraging trading conditions in the six months to June 30, 2010 - and especially in the second quarter - the Group expects the global economic climate to remain fragile in second-half 2010, with varying trends from one country to the next. However, the overall improvement observed since the beginning of the year should continue, with:
- ongoing vigorous growth in Latin America and Asia.
Conditions should remain broadly challenging in most Eastern European
countries, with the exception of Poland, which should confirm and
accelerate its return to growth.
- continuing strong momentum in North America for Group
businesses related to industrial output and household consumption. In
construction, market conditions should remain fragile, but improve on the
whole.
- consolidation of the relative improvement observed since
March in Western European residential construction markets. However,
trends will continue to vary widely from one country to the next
(recovery in the UK, Scandinavia and Germany; further decline in Southern
Europe; relative stabilization in France). Industrial markets are
expected to remain healthy.
For the Group as a whole, these trends should help confirm the slight pick-up in sales volumes and ongoing improvement in operations in the second half, despite a higher comparison basis, especially in the fourth quarter.
Along the lines of the achievements of the six months to June
30, the Group will continue to pursue its action plan priorities, and:
- continue to give priority to sales prices, following the
0.8% rise in the second quarter.
- continue to demonstrate its ability to adapt to changing
market conditions. In particular, in the second half of the year it will
complete its EUR200 million cost cutting program for 2010, resulting in
EUR600 million more cost savings than in 2009.
- pursue R&D efforts.
- maintain strict financial discipline.
** with effect from second-half 2010.
- lastly, thanks to its enhanced financial structure and
financial potential, it will stand ready to leverage any growth
opportunities that arise in its markets, through a highly selective
investment policy (capex and investments in securities) focused on Asia
and emerging countries, energy efficiency and solar power. This policy
will be intensified in the second half of 2010 as compared with the
first.
Accordingly, for full-year 2010, the Group:
- is confirming its objective of strong growth in operating
income at constant exchange rates (2009 exchange rates), with operating
income for second-half 2010 slightly above the first half.
- is raising its free cash flow target of above EUR1 billion
(already achieved in first-half 2010) to EUR1.4 billion, despite a higher
level of capital expenditure in the second half.
Forthcoming results announcement
- Sales for the first nine months of 2010: October 21, 2010, after close
of trading on the Paris Bourse.
* * *
Appendix 1: Results by business sector and geographic area
Change on Change on Change on
I. SALES H1 2009 H1 2010 an actual a a
comparablecomparable
(in EUR (in EUR structure structure structure
m) m) basis basis and
currency
basis
By sector and division:
Innovative Materials (1) 3,802 4,535 +19.3% +18.9% +13.8%
Flat Glass 2,198 2,537 +15.4% +15.8% +10.1%
High-Performance Materials 1,611 2,010 +24.8% +23.4% +19.1%
Construction Products (1) 5,233 5,422 +3.6% +3.1% +0.0%
Interior Solutions 2,539 2,535 -0.2% -0.7% -3.6%
Exterior Solutions 2,710 2,903 +7.1% +6.5% +3.4%
Building Distribution 8,445 8,322 -1.5% -1.8% -4.1%
Packaging 1,744 1,760 +0.9% +0.9% -0.2%
Internal sales and misc. -509 -510 n.m. n.m. n.m.
Group Total 18,715 19,529 +4.3% +4.0% +1.0%
(1) including intra-sector
eliminations
By geographic area:
France 5,895 5,786 -1.8% -1.9% -1.9%
Other Western European 8,099 8,161 +0.8% +0.7% -1.7%
countries
North America 2,501 2,846 +13.8% +12.7% +11.4%
Emerging countries and 2,948 3,631 +23.2% +21.7% +9.6%
Asia
Internal sales -728 -895 n.m. n.m. n.m.
Group Total 18,715 19,529 +4.3% +4.0% +1.0%
H1 2009 H1 2010 Change on H1 2009 H1 2010
(in EUR (in EUR (in % of (in % of
m) m) sales) sales)
II. OPERATING INCOME an actual
structure
basis
By sector and division:
Innovative Materials 101 471 +366.3% 2.7% 10.4%
Flat Glass 13 199 +1430.8% 0.6% 7.8%
High-Performance Materials 88 272 +209.1% 5.5% 13.5%
Construction Products 474 549 +15.8% 9.1% 10.1%
Interior Solutions 171 173 +1.2% 6.7% 6.8%
Exterior Solutions 303 376 +24.1% 11.2% 13.0%
Building Distribution 116 197 +69.8% 1.4% 2.4%
Packaging 233 227 -2.6% 13.4% 12.9%
Miscellaneous 6 1 n.m. n.m. n.m.
Group Total 930 1,445 +55.4% 5.0% 7.4%
By geographic area:
France 316 358 +13.3% 5.4% 6.2%
Other Western European 260 415 +59.6% 3.2% 5.1%
countries
North America 221 342 +54.8% 8.8% 12.0%
Emerging countries and 133 330 +148.1% 4.5% 9.1%
Asia
Group Total 930 1,445 +55.4% 5.0% 7.4%
H1 2009 H1 2010 Change on H1 2009 H1 2010
(in EUR (in EUR (in % of (in % of
m) m) sales) sales)
III. BUSINESS INCOME an actual
structure
basis
By sector and division:
Innovative Materials -58 382 +758.6% -1.5% 8.4%
Flat Glass -98 153 +256.1% -4.5% 6.0%
High-Performance Materials 40 229 +472.5% 2.5% 11.4%
Construction Products 420 483 +15.0% 8.0% 8.9%
Interior Solutions 139 122 -12.2% 5.5% 4.8%
Exterior Solutions 281 361 +28.5% 10.4% 12.4%
Building Distribution 71 160 +125.4% 0.8% 1.9%
Packaging 218 217 -0.5% 12.5% 12.3%
Miscellaneous -50 (a) -41 (a) n.m. n.m. n.m.
Group Total 601 1,201 +99.8% 3.2% 6.1%
By geographic area:
France 282 310 +9.9% 4.8% 5.4%
Other Western European 101 336 +232.7% 1.2% 4.1%
countries
North America 121(a) 257(a) +112.4% 4.8% 9.0%
Emerging countries and 97 298 +207.2% 3.3% 8.2%
Asia
Group Total 601 1,201 +99.8% 3.2% 6.1%
(a) after asbestos-related charge (before tax) of
EUR37.5m in H1 2009 and in H1 2010
H1 2009 H1 2010 Change on H1 2009 H1 2010
(in EUR (in EUR (in % of (in % of
m) m) sales) sales)
IV. CASH FLOW an actual
structure
basis
By sector and division:
Innovative Materials 123 463 +276.4% 3.2% 10.2%
Flat Glass 41 235 +473.2% 1.9% 9.3%
High-Performance Materials 82 228 +178.0% 5.1% 11.3%
Construction Products 332 403 +21.4% 6.3% 7.4%
Building Distribution 80 149 +86.3% 0.9% 1.8%
Packaging 260 250 -3.8% 14.9% 14.2%
Miscellaneous 284 (a) 166 (a) n.m. n.m. n.m.
Group Total 1,079 1,431 +32.6% 5.8% 7.3%
By geographic area:
France 299 229 -23.4% 5.1% 4.0%
Other Western European 359 500 +39.3% 4.4% 6.1%
countries
North America 235(a) 290(a) +23.4% 9.4% 10.2%
Emerging countries and 186 412 +121.5% 6.3% 11.3%
Asia
Group Total 1,079 1,431 +32.6% 5.8% 7.3%
(a) after asbestos-related
charge (after tax) of
EUR23m in H1 2009 and in
H1 2010
H1 2009 H1 2010 Change on H1 2009 H1 2010
(in EUR (in EUR (in % of (in % of
m) m) sales) sales)
V. CAPITAL EXPENDITURE an actual
structure
basis
By sector and division:
Innovative Materials 209 151 -27.8% 5.5% 3.3%
Flat Glass 150 116 -22.7% 6.8% 4.6%
High-Performance Materials 59 35 -40.7% 3.7% 1.7%
Construction Products 135 97 -28.1% 2.6% 1.8%
Interior Solutions 88 43 -51.1% 3.5% 1.7%
Exterior Solutions 47 54 +14.9% 1.7% 1.9%
Building Distribution 67 63 -6.0% 0.8% 0.8%
Packaging 96 114 +18.8% 5.5% 6.5%
Miscellaneous 7 7 n.m. n.m. n.m.
Group Total 514 432 -16.0% 2.7% 2.2%
By geographic area:
France 106 77 -27.4% 1.8% 1.3%
Other Western European 170 133 -21.8% 2.1% 1.6%
countries
North America 73 66 -9.6% 2.9% 2.3%
Emerging countries and 165 156 -5.5% 5.6% 4.3%
Asia
Group Total 514 432 -16.0% 2.7% 2.2%
H1 2009 H1 2010 Change on H1 2009 H1 2010
(in EUR (in EUR (in % of (in % of
m) m) sales) sales)
IV. EBITDA an actual
structure
basis
By sector and division:
Innovative Materials 335 715 +113.4% 8.8% 15.8%
Flat Glass 156 352 +125.6% 7.1% 13.9%
High-Performance Materials 179 363 +102.8% 11.1% 18.1%
Construction Products 731 811 +10.9% 14.0% 15.0%
Interior Solutions 336 341 +1.5% 13.2% 13.5%
Exterior Solutions 395 470 +19.0% 14.6% 16.2%
Building Distribution 257 336 +30.7% 3.0% 4.0%
Packaging 344 344 +0.0% 19.7% 19.5%
Miscellaneous 19 14 n.m. n.m. n.m.
Group Total 1,686 2,220 31.7% 9.0% 11.4%
By geographic area:
France 505 547 +8.3% 8.6% 9.5%
Other Western European 535 687 +28.4% 6.6% 8.4%
countries
North America 347 466 +34.3% 13.9% 16.4%
Emerging countries and 299 520 +73.9% 10.1% 14.3%
Asia
Group Total 1,686 2,220 +31.7% 9.0% 11.4%
Appendix 2: Sales by business sector and
geographic area - Second Quarter
Change on Change on Change on
SALES Q2 2009 Q2 2010 an actual a a
comparablecomparable
(in EUR (in EUR structure structure structure
m) m) basis basis and
currency
basis
By sector and division:
Innovative Materials (1) 1,938 2,429 +25.3% +24.8% +17.0%
Flat Glass 1,148 1,344 +17.1% +17.3% +10.5%
High-Performance Materials 793 1,089 +37.3% +35.4% +26.3%
Construction Products (1) 2,777 3,009 +8.4% +7.8% +2.9%
Interior Solutions 1,259 1,344 +6.8% +5.3% +0.9%
Exterior Solutions 1,526 1,674 +9.7% +9.7% +4.5%
Building Distribution 4,534 4,659 +2.8% +2.6% -0.1%
Packaging 943 973 +3.2% +3.1% -0.1%
Internal sales and misc. -258 -278 n.m. n.m. n.m.
Group Total 9,934 10,792 +8.6% +8.3% +3.9%
(1) including intra-sector
eliminations
By geographic area:
France 3,074 3,108 +1.1% +1.1% +1.1%
Other Western European 4,343 4,539 +4.5% +4.4% +1.7%
countries
North America 1,273 1,597 +25.5% +24.1% +16.3%
Emerging countries and 1,609 2,022 +25.7% +24.7% +10.4%
Asia
Internal sales -365 -474 n.m. n.m. n.m.
Group Total 9,934 10,792 +8.6% +8.3% +3.9%
Appendix 3: Consolidated balance sheet
(in EUR millions) June 30, 2010 Dec 31, 2009
ASSETS
Goodwill 11,413 10.740
Other intangible assets 3,098 2.998
Property, plant and equipment 13,718 13.300
Investments in associates 130 123
Deferred tax assets 902 676
Other non-current assets 272 312
Non-current assets 29,533 28.149
Inventories 5,941 5.256
Trade accounts receivable 6,265 4.926
Current tax receivable 119 333
Other accounts receivable 1,341 1.202
Assets held for sale 151
Cash and cash equivalents 1,488 3.157
Current assets 15,305 14.874
Total assets 44,838 43.023
Liabilities and Shareholders' equity
Capital stock 2,123 2.052
Additional paid-in capital and legal reserve 5,779 5.341
Retained earnings and net income for the year 9,841 10.137
Cumulative translation adjustments 48 (1,340)
Fair value reserves (63) (75)
Treasury stock (205) (203)
Shareholders' equity 17,523 15.912
Minority interests 343 302
Total equity 17,866 16.214
Long-term debt 7,873 8.839
Provisions for pensions and other employee benefits , 574 2.958
Deferred tax liabilities 892 921
Provisions for other liabilities and charges 2,280 2.169
Non-current liabilities 14,619 14.887
Current portion of long-term debt 1,416 1.880
Current portion of provisions for other
liabilities and charges 530 518
Trade accounts payable 5,616 5.338
Current tax liabilities 124 108
Other accounts payable 3,349 3.086
Liabilities held for sale 38
Short-term debt and bank overdrafts 1,280 992
Current liabilities 12,353 11,922
Total equity and liabilities 44,838 43,023
Appendix 4: Consolidated cash flow statement
(in EUR millions) H1 2010 H1 2009
Net income attributable to equity holders of
the parent 501 128
Minority interests in net income 37 10
Share in net income of associates, net of dividents (1)
received
Depreciation, amortization and impairment of assets 830 823
Gains and losses on disposals of assets (9) (2)
Unrealized gains and losses arising from changes in 32 88
fair value and share-based payments
Changes in inventories (416) 240
Changes in trade accounts receivable and payable,
and other accounts receivable and payable (1,011) (785)
Changes in tax receivable and payable 211 (93)
Changes in deferred taxes and provisions for other (106) (127)
liabilities and charges
Net cash from operating activities 68 282
Purchases of property, plant and equipment [ H1-2010:
(432), H1-2009: (514) ] and intangible assets (451) (538)
Acquisitions of property, plant and equipment in
finance leases (3) (12)
Increase (decrease) in amounts due to suppliers of (152) (242)
fixed assets
Acquisitions of shares in consolidated companies [
H1-2010: (33), H1-2009: (162) ], net of debt acquired (70) (152)
Acquisitions of other investments (3) (2)
Increase in investment-related liabilities 21 25
Decrease in investment-related liabilities (13) (35)
Investments (671) (956)
Disposals of property, plant and equipment and 45 36
intangible assets
Disposals of shares in consolidated companies, net of 13 1
net debt divested
Disposals of other investments and other divestments 9 6
Divestments 67 43
Increase in loans and deposits (27) (23)
Decrease in loans and deposits 20 33
Net cash used in investing activities / divestments (611) (903)
Issues of capital stock 509 1,922
Minority interests' share in capital increases of 2 1
subsidiaries
(Increase) decrease in treasury stock (4) (6)
Dividends paid (509) (486)
Dividends paid to minority shareholders of consolidated
subsidiaries and increase (decrease) in dividends
payable 100 148
Net Cash from (used in) financing activities 98 1,579
Increase (decrease) in net debt (445) (958)
Net effect of exchange rate changes on net debt (87) (91)
Net effect from changes in fair value on net debt 5 (78)
Net debt at beginning of period (8,554) (11,679)
Net debt at end of period (9,081) (10,890)
Analyst / Investor Relations
Florence Triou-Teixeira +33-1-47-62-45-19
Etienne Humbert +33-1-47-62-30-49
Vivien Dardel +33-1-47-62-44-29
Press Relations
Sophie Chevallon +33-1-47-62-30-48
SOURCE Saint-Gobain
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article