Saint-Gobain - First-half 2012: The Group Rolls out a New Action Plan to Address the Deteriorating Economic Climate

Date: 30 July 2012
Source: www.prnewswire.com

Date: 30 July 2012

First-half 2012highlights:  - Organic growth: down 0.8% over the first half, down 2.3% in the second quarter  - Sales prices: up 2.2% over the first half (up 2.6% excluding Flat Glass)  - New cost cutting measures: savings of €170m in the first half; €500m in 2012; full-year impact: €750m  - Sharp improvement in operating WCR[2] over 12 months: down 5.1 days, representing a gain of €340m  - Free cash flow[3] after changes in operating WCR (over 12 months): up 21.0% to €1,367m  - Ongoing strong balance sheet: net debt/EBITDA ratio at 2.1 and net debt/equity at 54%Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain, commented:Besides the impact of one less working day and of very average weather conditions in Europe, trading for the Group in the second quarter was also affected by the general slowdown in the economic environment in Western Europe - which the continued upturn in US construction markets could not wholly offset.

In this tough climate, we maintained our priority focus on sales prices in order to pass on the rise in raw material and energy costs over the full year, and also rolled out a new cost cutting program.

We expect the business trends observed in the second quarter to continue through the second half, although Asia and emerging countries should witness timid growth. Against this backdrop, in the second half of 2012 we are firmly reinforcing our new action plan: focusing on sales prices, stepping up our cost cutting program and scaling back our capital spending and financial investments compared to second-half 2011, while maintaining a tight rein on operating working capital.

Overall, in view of the deterioration in the economic climate since the beginning of 2012,we are now expecting for the year as a whole a measured rise in our sales prices, a limited decline in our volumes, and second-half operating income to be moderately down on our first-half performance. In addition, we confirm our target of maintaining high levels of free cash flow and a strong balance sheet."

 1. Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions.

 2. Working Capital Requirement.

Read more: PR Newswire

600450 Saint-Gobain - First-half 2012: The Group Rolls out a New Action Plan to Address the Deteriorating Economic Climate glassonweb.com

See more news about:

Others also read

MORE...

Wicona Curtain Walling for Glasgow Velodrome
The Emirates Arena and Sir Chris Hoy Velodrome have just been completed, creating a new world class sporting landmark for Scotland.
Construction Employment Declined in Most States in November as Anxiety Over Fiscal Cliff Causes Contractors to Hold Off on Hiring
Hawaii and Texas Top List of 20 States and D.C. Adding Construction Jobs Since November 2011 as Delaware and New York Trail; Vermont and Louisiana Led 19 States with One-Month Gain, D.
SAGE Electrochromics, Inc. Files Patent Infringement Lawsuit in U.S. District Court Against View, Inc.
SAGE Electrochromics, Inc., a world leader in the development and manufacture of dynamic glass, located in Faribault, Minn., today announced it has filed a lawsuit in U.S.
The American Scenario in The Glass Industry
The United States is honoring its role, to the best of its ability, as the world's locomotive, although despite the positive performance of the real estate market, America seems to be recovering slower than expected.
Turkish glass producer to expand operations at home and abroad with the help of EBRD loans
The EBRD is providing loans worth €110 million to Turkish glass manufacturer Trakya Cam A.Ş. that will expand its product range at home and in Bulgaria and also establish a presence on the Russian market, setting new standards in energy efficiency.
Lucintel Identifies APAC as Growth Region for Global Automotive Glass Industry during 2012-2017
Irving, Texas (PRWEB) December 18, 2012 - The global automotive glass industry experienced good growth over the last five years and is expected to grow moderately with a CAGR of 3% over the next five years (2012-2017) to reach revenue of approximately US $17 billion in 2017.

Add new comment