Glaverbel Group: Good third quarter thanks to processing activities

Date: 22 October 2001

The slowdown in the economy put a brake on the Group's growth during the third quarter. The weaker economy resulted in a fall in demand for clear raw glass, without however affecting price levels.

Nevertheless, this was offset by the continuing recovery of the Automotive Division, the good performance of the Industries Division and the further growth in glass with high added value. The latter was due in particular to the new production capacity recently installed in the Czech Republic.

The performance indicators for the third quarter remain higher than those for the corresponding period in 2000.

There has been no significant change in the Group's consolidation scope compared with the first nine months of 2000.

The consolidated sales for the third quarter amount to EUR 417.8 million, compared with EUR 395 million one year previously, an increase of 5.8%. In cumulative terms at the end of September, sales amount to EUR 1.3 billion, compared with EUR 1.2 billion, an increase of 7.5%.

The operating result (EBIT) for the third quarter amounts to EUR 46.6 million, or about the same level as for the corresponding period in 2000 (EUR 46.7 million). In cumulative terms at the end of September, the operating result comes to EUR 173.8 million, compared with EUR 129.2 million in 2000, an increase of 34.5%. It is also worth noting that the Automotive Division is well on the way to recovery, having more than doubled its EBIT thanks to a three-year plan for improving its performance.

The net result, Group's share for the third quarter amounts to EUR 25 million, compared with EUR 24 million in 2000, up by 4.2%. The cumulative figure at the end of September stands at EUR 95.5 million, as against EUR 73.7 million in 2000, an increase of 29.6%.

Faced with the slowdown in demand, the Group has taken measures to reduce its production capacity, by delaying the startup of new facilities (Moustier No. 4 float line, which started on 16 October), and by reducing the amount of clear float glass drawn from most of its 15 furnaces. These measures represent a decrease in the supply of glass equivalent to the production of one furnace. Barring a further deterioration in the European economy, the Glaverbel Group confirms that for 2001 as a whole it should achieve its objective of 20% growth in its net result.