Final Results
Compagnie de Saint-Gobain
23 March 2007
March 22, 2007
Press release
FINAL RESULTS FOR 2006: CONFIRMATION OF THE FIGURES PUBLISHED AT THE END OF
JANUARY 2007
Strong growth, outperforming targets
- Sales: up 18.5% to €41,596 million; up 18.2% at constant exchange rates* and
up 6.7% like-for-like
- Operating income: up 29.9% to €3,714 million; up 29.8% at constant exchange
rates*
- Net income (excluding capital gains and losses on sales of non-current
assets): up 32.6% to €1,702 million
* average exchange rates for 2005
2007 targets: another year of growth
- Robust increase in operating income, at constant exchange rates**
- Double-digit growth in net income (excluding capital gains and losses on
sales of non-current assets)
** average exchange rates for 2006
2006 DIVIDEND***: €1.7 per share, up 25% on 2005
*** Recommended dividend payable in respect of 2006 to be submitted by the Board
of Directors to the Annual General Meeting on June 7, 2007 for approval.
The Group's 2006 consolidated financial statements were adopted by
Saint-Gobain's Board of Directors at their meeting of Thursday March 22, 2007.
2006 Consolidated financial statements .......................................
The key consolidated data for the Group, as well as the results by business
sector and geographical area set out in the appendix, are the same as the
estimated figures published at the end of January (**), and are summarized
below:
2005 2006 %
In € millions In € millions change
(1) (2) (2)/(1)
Net sales (a) 35,110 (a) 41,596 (a) +18.5%
Operating income 2,860 3,714 +29.9%
Non-operating costs (288) (367) +27.4%
Capital gains and losses and exceptional asset write-downs (21) (27) -28.6%
Dividend income 3 2 -50.0%
Business income 2,554 3,322 +30.1%
Net financial expense (569) (748) +31.5%
Income tax (701) (899) +28.2%
Share in net income of equity investees 10 7 -30.0%
Income before minority interests 1,294 1,682 +30.0%
Minority interests (30) (45) +50.0%
Net attributable income 1,264 1,637 +29.5%
Earnings per share based on the number of shares at
December 31 (in €) 3.66 4.44 +21.3%
Earnings per share excluding capital gains 1,284 1,702 +32.6%
Earnings per share excluding capital gains based on the
number of shares at December 31 (in €) 3.72 4.62 +24.2%
Cash flow from operations 2,735 3,347 +22.4%
Cash flow from operations excluding capital gains tax 2,730 3,374 +23.6%
Depreciation and amortization 1,420 1,717 (b) +20.9%
Capital expenditure 1,756 2,191 +24.8%
Investments in securities (c) 6,991 584 n.m.
Net debt 12,850 11,599 -9.7%
(a) including ancillary revenue of €273 million in 2006, versus €250
million in 2005
(b) including additional amortization of €17 million in 2006 resulting
from the allocation of BPB's acquisition cost to certain items
of property, plant and equipment (gypsum quarries and industrial plants) and
intangible assets such as patents
(c) excluding buy-backs and/or sales of own shares
All of the comments published at the end of January (**) regarding the Group's
consolidated financial statements therefore apply to the final figures.
(**) The press release relating to the Group's estimated 2006 results -
published at the end of January 2007 - is available on the Saint-Gobain website
(www.saint-gobain.com)
Annual General Meeting
The Board of Directors also adopted the accounts of Compagnie de Saint-Gobain,
the parent company.
At the General Meeting of the Company's shareholders called for June 7, 2007,
the Board will recommend a dividend payout of €617 million, representing 36.1%
of net income excluding capital gains on sales of non-current assets and
exceptional asset write-downs, and 37.6% of net income.
The dividend per share would therefore be €1.7, an increase of 25% on 2005.
Based on the closing share price on December 29, 2006 (€63.65), this dividend
would represent a net yield of 2.7%. The dividend will be paid entirely in cash
as from June 21, 2007.
At the General Meeting of June 7, 2007, shareholders will be asked to approve:
- the appointment and renewal of the term of office as director of
Bernard Cusenier, representing current employee and former employee shareholders
of Saint-Gobain (replacing Pierre Kerhuel);
- the renewal of the terms of office as directors of Gerard Mestrallet,
Chairman and CEO of Suez and Denis Ranque, Chairman and CEO of Thales;
- and the appointment as directors of Robert Chevrier, a Canadian
national company administrator (replacing Paul David, who has reached the age
limit applicable to directors) and of Japanese national Yuko Harayama, a member
of the Japanese government's Committee for Science and Technology and executive
advisor to the Chairman of the University of Tohoku in Japan (replacing Sehoon
Lee, who has decided not to seek re-election).
The Board of Directors wishes to thank Pierre Kerhuel, Paul David and Sehoon Lee
for their contribution to its work.
2007 outlook and objectives
The Group confirms its objectives as published at the end of January 2007:
- robust growth in operating income, at constant exchange rates (average
exchange rates for 2006);
- double-digit growth in net income, excluding capital gains and losses
on sales of non-current assets.
These objectives are based on the assumption that Saint-Gobain Desjonqueres and
the Reinforcements & Composites business will be deconsolidated in first-half
2007, but do not reflect any other major scope adjustments that may occur in
2007.
Forthcoming results announcements
- Sales for the first quarter of 2007: April 26, 2007, after close of
trading on the Paris Bourse.
***
Investor Relations Department
Florence Triou-Teixeira Tel.: +33 1 47 62 45 19
Alexandre Etuy Tel.: +33 1 47 62 37 15
Fax: +33 1 47 62 50 62
Appendix 1: Results by Business Sector, Division and
Geographic Area
Change on Change on a Change on a
an actual comparable comparable
I. SALES 2005 2006 structure structure structure and
(in EUR m) (in EUR m) basis basis currency
basis
By sector and division:
Flat Glass 4,680 5,083 +8.6% +9.0% +7.8%
High-Performance Materials (1) 4,880 4,938 +1.2% +3.5% +3.3%
Ceramics & Plastics and Abrasives 3,591 3,589 -0.1% +3.4% +3.3%
Reinforcements 1,306 1,365 +4.5% +3.6% +3.0%
Construction Products (1) 6,694 10,876 +62.5% +8.9% +8.7%
Building Materials 2,733 2,694 -1.4% +2.5% +2.3%
Insulation 2,244 2,542 +13.3% +10.7% +10.4%
Gypsum 263 3,895 n.m. +12.2% +12.1%
Pipe 1,474 1,783 +21.0% +10.1% +9.6%
Building Distribution 15,451 17,581 +13.8% +7.2% +7.0%
Packaging (2) 4,008 4,080 +1.8% +4.0% +3.6%
Internal sales and misc. -603 -962 n.m. n.m. n.m.
GROUP TOTAL 35,110 41,596 +18.5% +7.1% +6.7%
2005 BPB pro forma*
Construction Products (1) 9,986 10,876 +8.9% +8.9% +8.7%
Insulation 2,280 2,542 +11.5% +10.7% +10.4%
Gypsum 3,521 3,895 +10.6% +12.2% +12.1%
Building Distribution 15,593 17,581 +12.7% +7.2% +7.0%
Internal sales and misc. -979 -962 n.m. n.m. n.m.
Group total based on 2005 BPB pro forma 38,168 41,596 +9.0% +7.1% +6.7%
By geographic area:
France 11,438 12,528 +9.5% +5.7% +5.7%
Other western European countries 15,193 18,448 +21.4% +7.1% +7.1%
North America 5,956 6,790 +14.0% +2.6% +3.1%
Emerging countries and Asia 4,443 5,933 +33.5% +16.4% +12.7%
Internal sales -1,920 -2,103 n.m. n.m. n.m.
GROUP TOTAL 35,110 41,596 +18.5% +7.1% +6.7%
2005 BPB pro forma*
France 11,892 12,528 +5.3% +5.7% +5.7%
Other western European countries 16,576 18,448 +11.3% +7.1% +7.1%
North America 6,836 6,790 -0.7% +2.6% +3.1%
Emerging countries and Asia 4,842 5,933 +22.5% +16.4% +12.7%
Internal sales -1,978 -2,103 n.m. n.m. n.m.
Group total based on 2005 BPB pro forma 38,168 41,596 +9.0% +7.1% +6.7%
(1) including intra-sector eliminations
(2) o/w Calmar (sold in july 2006): €313m in 2005;
€183m in 2006
*BPB pro forma information is disclosed solely for those business sectors
affected by the BPB acquisition. Figures for BPB's building merchants' business
are included within the Building Distribution sector.
Change on
II. OPERATING INCOME 2005 2006 an actual 2005 2006
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:
Flat Glass 453 480 +6.0% 9.7% 9.4%
High-Performance Materials 511 500 -2.2% 10.5% 10.1%
Ceramics & Plastics and Abrasives 462 468 +1.3% 12.9% 13.0%
Reinforcements 49 32 -34.7% 3.8% 2.3%
Construction Products 614 1,376 +124.1% 9.2% 12.7%
Building Materials 223 208 -6.7% 8.2% 7.7%
Insulation 292 379 +29.8% 13.0% 14.9%
Gypsum -8 649 n.m. n.m. 16.7%
Pipe 107 140 +30.8% 7.3% 7.9%
Building Distribution 888 1,001 +12.7% 5.7% 5.7%
Packaging (2) 385 376 -2.3% 9.6% 9.2%
Miscellaneous 9 -19 n.m. n.m. n.m.
GROUP TOTAL 2,860 3,714 +29.9% 8.1% 8.9%
2005 BPB pro forma*
Construction Products (1) 1,113 1,376 +23.6% 11.1% 12.7%
Insulation 296 379 +28.0% 13.0% 14.9%
Gypsum 487 649 +33.3% 13.8% 16.7%
Building Distribution 893 1,001 +12.1% 5.7% 5.7%
Group total based on 2005 BPB pro forma 3,364 3,714 +10.4% 8.8% 8.9%
By geographic area:
France 889 970 +9.1% 7.8% 7.7%
Other western European countries 1,090 1,506 +38.2% 7.2% 8.2%
North America 487 701 +43.9% 8.2% 10.3%
Emerging countries and Asia 394 537 +36.3% 8.9% 9.1%
GROUP TOTAL 2,860 3,714 +29.9% 8.1% 8.9%
2005 BPB pro forma*
France 965 970 +0.5% 8.1% 7.7%
Other western European countries 1,335 1,506 +12.8% 8.1% 8.2%
North America 627 701 +11.8% 9.2% 10.3%
Emerging countries and Asia 437 537 +22.9% 9.0% 9.1%
Group total based on 2005 BPB pro forma 3,364 3,714 +10.4% 8.8% 8.9%
* BPB pro forma information is disclosed solely for those business sectors
affected by the BPB acquisition. Figures for BPB's building merchants' business
are included within the Building Distribution sector.
(2) o/w Calmar: €35m in 2005; €28m in 2006
Change on
III. BUSINESS INCOME 2005 2006 an actual 2005 2006
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:
Flat Glass 443 455 +2.7% 9.5% 9.0%
High-Performance Materials 411 416 +1.2% 8.4% 8.4%
Ceramics & Plastics and Abrasives 378 411 +8.7% 10.5% 11.5%
Reinforcements 33 5 -84.8% 2.5% 0.4%
Construction Products 559 1,229 +119.9% 8.4% 11.3%
Building Materials 247 170 -31.2% 9.0% 6.3%
Insulation 278 341 +22.7% 12.4% 13.4%
Gypsum -57 648 n.m. n.m. 16.6%
Pipe 91 70 -23.1% 6.2% 3.9%
Building Distribution 874 979 +12.0% 5.7% 5.6%
Packaging (2) 375 379 +1.1% 9.4% 9.3%
Miscellaneous** -108 -136 n.m. n.m. n.m.
GROUP TOTAL 2,554 3,322 +30.1% 7.3% 8.0%
2005 BPB pro forma*
Construction Products (1) 1,079 1,229 +13.9% 10.8% 11.3%
Insulation 282 341 +20.9% 12.4% 13.4%
Gypsum 459 648 +41.2% 13.0% 16.6%
Building Distribution 879 979 +11.4% 5.6% 5.6%
Group total based on 2005 BPB pro forma 3,079 3,322 +7.9% 8.1% 8.0%
By geographic area:
France 856 883 +3.2% 7.5% 7.0%
Other western European countries 1,012 1,457 +44.0% 6.7% 7.9%
North America ** 302 481 +59.3% 5.1% 7.1%
Emerging countries and Asia 384 501 +30.5% 8.6% 8.4%
GROUP TOTAL 2,554 3,322 +30.1% 7.3% 8.0%
2005 BPB pro forma*
France 924 883 -4.4% 7.8% 7.0%
Other western European countries 1,287 1,457 +13.2% 7.8% 7.9%
North America 441 481 +9.1% 6.5% 7.1%
Emerging countries and Asia 427 501 +17.3% 8.8% 8.4%
Group total based on 2005 BPB pro forma 3,079 3,322 +7.9% 8.1% 8.0%
* BPB pro forma information is disclosed solely for those business sectors
affected by the BPB acquisition. Figures for BPB's building merchants' business
are included within the Building Distribution sector.
** after asbestos-related charge (before tax) of € 95 million in 2006, versus
€ 100 million in 2005.
(2) o/w Calmar: €34m in 2005; €31m in 2006
Change on
IV. CASH FLOW 2005 2006 an actual 2005 2006
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:
Flat Glass 528 529 +0.2% 11.3% 10.4%
High-Performance Materials 446 432 -3.1% 9.1% 8.7%
Ceramics & Plastics and Abrasives 342 363 +6.1% 9.5% 10.1%
Reinforcements 104 69 -33.7% 8.0% 5.1%
Construction Products 559 1,048 +87.5% 8.4% 9.6%
Building Materials 212 204 -3.8% 7.8% 7.6%
Insulation 287 358 +24.7% 12.8% 14.1%
Gypsum -31 368 n.m. n.m. 9.4%
Pipe 91 118 +29.7% 6.2% 6.6%
Building Distribution 667 817 +22.5% 4.3% 4.6%
Packaging (2) 432 402 -6.9% 10.8% 9.9%
Miscellaneous** 103 119 n.m.
GROUP TOTAL 2,735 3,347 +22.4% 7.8% 8.0%
2005 BPB pro forma*
Construction Products 908 1,048 +15.4% 9.1% 9.6%
Insulation 282 358 +27.0% 12.4% 14.1%
Gypsum 323 368 +13.9% 9.2% 9.4%
Building Distribution 672 817 +21.6% 4.3% 4.6%
Miscellaneous 109 119 n.m. n.m. n.m.
Group total based on 2005 BPB pro forma 3,095 3,347 +8.1% 8.1% 8.0%
By geographic area:
France 903 733 -18.8% 7.9% 5.9%
Other western European countries 969 1,446 +49.2% 6.4% 7.8%
North America** 410 573 +39.8% 6.9% 8.4%
Emerging countries and Asia 453 595 +31.3% 10.2% 10.0%
GROUP TOTAL 2,735 3,347 +22.4% 7.8% 8.0%
2005 BPB pro forma*
France 830 733 -11.7% 7.0% 5.9%
Other western European countries 1,252 1,446 +15.5% 7.6% 7.8%
North America 513 573 +11.7% 7.5% 8.4%
Emerging countries and Asia 500 595 +19.0% 10.3% 10.0%
Group total based on 2005 BPB pro forma 3,095 3,347 +8.1% 8.1% 8.0%
* BPB pro forma information is disclosed solely for those business sectors
affected by the BPB acquisition. Figures for BPB's building merchants' business
are included within the Building Distribution sector.
** after asbestos-related charge (before tax) of € 64 million in 2006, versus
€ 68 million in 2005.
(2) o/w Calmar: €36m in 2005; €19m in 2006
Change on
V. CAPITAL EXPENDITURE 2005 2006 an actual 2005 2006
(in EUR m) (in EUR m) structure (in % of sales) (in % of sales)
basis
By sector and division:
Flat Glass 485 448 -7.6% 10.4% 8.8%
High-Performance Materials 271 225 -17.0% 5.6% 4.6%
Ceramics & Plastics and Abrasives 187 161 -13.9% 5.2% 4.5%
Reinforcements 84 64 -23.8% 6.4% 4.7%
Construction Products 355 844 +137.7% 5.3% 7.8%
Building Materials 102 142 +39.2% 3.7% 5.3%
Insulation 145 145 +0.0% 6.5% 5.7%
Gypsum 52 487 n.m. n.m. 12.5%
Pipe 56 70 +25.0% 3.8% 3.9%
Building Distribution 327 315 -3.7% 2.1% 1.8%
Packaging (2) 305 335 +9.8% 7.6% 8.2%
Miscellaneous 13 24 n.m. n.m. n.m.
GROUP TOTAL 1,756 2,191 +24.8% 5.0% 5.3%
2005 BPB pro forma*
Construction Products 667 844 +26.5% 6.7% 7.8%
Gypsum 364 487 +33.8% 10.3% 12.5%
Building Distribution 328 315 -4.0% 2.1% 1.8%
Group total based on 2005 BPB pro forma 2,069 2,191 +5.9% 5.4% 5.3%
By geographic area:
France 391 485 +24.0% 3.4% 3.9%
Other western European countries 574 749 +30.5% 3.8% 4.1%
North America 256 363 +41.8% 4.3% 5.3%
Emerging countries and Asia 535 594 +11.0% 12.0% 10.0%
GROUP TOTAL 1,756 2,191 +24.8% 5.0% 5.3%
2005 BPB pro forma*
France 432 485 +12.3% 3.6% 3.9%
Other western European countries 697 749 +7.5% 4.2% 4.1%
North America 298 363 +21.8% 4.4% 5.3%
Emerging countries and Asia 642 594 -7.5% 13.3% 10.0%
Group total based on 2005 BPB pro forma 2,069 2,191 +5.9% 5.4% 5.3%
* BPB pro forma information is disclosed solely for those business sectors
affected by the BPB acquisition. Figures for BPB's building merchants' business
are included within the Building Distribution sector.
(2) o/w Calmar: €26m in 2005; €9m in 2006
Appendix 2: Consolidated Balance Sheet at December 31, 2006
in EUR millions Dec 31, 2006 Dec 31, 2005 restated (*)
Assets
Goodwill 9,327 9,718
Other intangible Assets 3,202 3,196
Property, plant and equipment 12,769 12,820
Investments in associates 238 139
Deferred tax assets 348 447
Other non-current assets 390 443
Non-current assets 26,274 26,763
Inventories 5,629 5,535
Trade accounts receivable 6,301 5,813
Current tax receivable 66 82
Other accounts receivable 1,390 939
Assets held for sale 548 0
Cash and cash equivalents 1,468 2,080
Currents assets 15,402 14,449
Total assets 41,676 41,212
Liabilities and Shareholders' equity
Shareholders' equity 14,165 11,991
Minority interests 322 327
Total equity 14,487 12,318
Long-term debt 9,877 11,315
Provisions for pensions and other employee benefits 2,203 3,430
Deferred tax liabilities 1,222 1,149
Provisions for other liabilities and charges 936 875
Non-current liabilities 14,238 16,769
Current portion of long-term debt 993 922
Current portion of provisions for other liabilities and 467 680
charges
Trade accounts payable 5,519 4,779
Current tax liabilities 190 216
Other accounts payable 3,336 2,835
Liabilities held for sale 249 0
Short-term debt and bank overdrafts 2,197 2,693
Current liabilities 12,951 12,125
Total equity and liabilities 41,676 41,212
(*) In accordance with IAS 8, at january 1, 2006 shareholders' equity was restated by €274 million.
Of this amount, €208 million relates to the restatement at December 31, 2005 of actuarial gains and
losses of the deferred tax effect. These actuarial differences relate to pension obligations and
are recognized against equity with effect from January 1, 2006, in accordance with the option
available under the revised IAS 19.
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