Nine Months Sales Report
Compagnie de Saint-Gobain
30 October 2001
CONSOLIDATED SALES FOR THE NINE MONTHS TO SEPTEMBER 30, 2001: up 7.6%
Net consolidated sales of the Saint-Gobain Group for the first 9 months of
2001 were up 7.6% year-on-year (12.8% excluding Essilor), to EUR 22,932
million, from EUR 21,302 million for the same period of 2000.
Based on a comparable Group structure and excluding Essilor, sales were up
2.2% in euros and 1.9% in local currencies.
These figures are attributable to mixed trends in the third quarter. At the
end of August, the Group had posted sales growth of 15.7% excluding Essilor
and 2.9% on a like-for-like basis, revenues fully in line with its forecasts
for the second half. In September, however, sales contracted by 3% on a
comparable structure and in local currencies. The decrease was strongest in
High-Performance Materials (Ceramics & Plastics and Abrasives) and
Reinforcements, as a result of the slowdown in industrial output and capital
expenditure affecting both the United States and Europe, particularly since
the events of September 11th
The breakdown of sales by business sector, division and geographic area is as
follows:
Changed
Sales, 9 Sales, 9 Change Change based on
months to months to based on based on comparable
Sept. Sept. 30, actual comparable structure
30, 2001 2000 structure structure and in
(in EUR (in EUR in euros local
millions) millions) currencies
BUSINESS SECTORS AND DIVISIONS
GLASS (1) 8,906 8,405 6.0% 4.5% 4.3%
Flat Glass 3,323 3,076 8.0% 5.5% 7.0%
Insulation & 2,481 2,391 3.8% -0.1% -0.9%
Reinforcements
Containers 3,109 2,945 5.6% 7.2% 5.6%
HIGH-PERFORMANCE 3,080 3,991 -22.8% -2.6% -3.7%
MATERIALS (1)
Ceramics, 3,080 3,013 +2.2% -2.6% -3.7%
High-Perf.
Plastics and
Abrasives
Essilor* 0 978 - - -
HOUSING 11,132 9,017 23.4% 1.8% 1.8%
PRODUCTS (1)
Building 2,469 2,353 4.9% 3.3% 1.8%
Materials
Building 7,450 5,475 36.0% 2.2% 2.5%
Materials
Distribution
Pipe 1,369 1,322 3.6% -0.7% 0.4%
INTERNAL SALES -186 -111 - - -
(INTER-SECTOR)
GROUP 22,932 21,302 7.6% 2.2% 1.9%
GEOGRAPHIC AREAS
France 6,813 6,369 7.1% 5.3% 5.3%
Other European 9,712 8,001 21.2% 0.9% 1.4%
countries
North America 5,530 5,208 6.2% 1.8% -3.3%
Rest of the 1,716 1,527 12.4% -0.7% 10.9%
world
Essilor* 0 978 - - -
INTERNAL SALES -839 -781 - - -
GROUP 22,932 21,302 7.6% 2.2% 1.9%
(1) including inter-division eliminations
* accounted for by the equity method from July 1 to November 15, 2000, at
which date the Group disposed of its entire stake in the company.
Group sales in third-quarter 2001 remained on a par with those of the same
period in 2000, on a like-for-like basis, as higher sales prices practically
offset declining volumes. For the first nine months of 2001, prices rose
3.7%, while volumes slipped 1.8%, with a 6.8% drop for the month of
September alone.
The Glass Sector recorded the Group's strongest growth, in line with its
first-half performance. Demand remains strong in Automotive Flat Glass and
Containers, but has slowed down in operations related to the building
industry in Europe and fallen in Reinforcements. The business sector as a
whole continues to enjoy high prices, especially in Flat Glass and
Reinforcements.
The High-Performance Materials and Plastics Sector experienced a new decrease
in sales in the third quarter of the year. In addition to the continuing
decline in the global electronics market, the Ceramics and Plastics division
recorded, in the third quarter, a slowdown in most industrial markets,
particularly those related to equipment and capital expenditure. The
Abrasives division, which had already suffered from the downturn in U.S.
manufacturing output in the first half, saw a significant contraction in its
European sales in the third quarter.
The Housing Products Sector posted higher sales in the third quarter,
particularly in the Building Materials and Pipe divisions. The Building
Materials Distribution division experienced vigorous sales in France and the
United Kingdom, but was hampered in Germany by the continuing slowdown in the
building industry.
By geographic area, sales trends for the third quarter show that France
continued to record strong activity levels, but the German market declined
sharply. In the United States, the Insulation and Building Materials
divisions continued to grow, boosted by a healthy construction market. In
Ceramics & Plastics, Abrasives and Reinforcements, however, volumes fell
abruptly due to the drop in manufacturing-industry demand.
Outlook: Last January, the Group had set as its objective a 10% increase in
net income excluding capital gains, 'provided there (was) no new and
significant deterioration in the economic environment.' As a result of the
slowdown in activity experienced in September, particularly in areas related
to capital expenditure, added to the high level of uncertainty surrounding
the world economy, the Group now sets as its objective for the full year 2001
growth of between 1% and 5% in its net income excluding capital gains.
Investor Relations Department
Tel.: Florence TRIOU-TEIXEIRA +33 (0)1 47 62 45 19
- mailto : florence.triou@saint-gobain.com
Tel.: Claire MOSES +33 (0)1 47 62 32 36
- mailto : claire.moses@saint-gobain.com
Fax:+33 (0)1 47 62 50 62