Saint-Gobain: Strong First-Half 2007 Growth

SALES: up 6.0% to EUR21,779 million up 6.9% like-for-like(*) - OPERATING INCOME: up 15.3% to EUR2,093 million up 16.6% like-for-like(*) - RECURRING NET INCOME(**): up 31.2% to EUR1,067 million Net income amounts to EUR465 million, taking into account the EUR650 million provision for the Flat Glass fines (European Commission). (*) based on average exchange rates for first-half 2006 (**) excluding capital gains, asset write-downs and the EUR650 million provision for the Flat Glass fines (European Commission) 2007 TARGETS RAISED - DOUBLE-DIGIT GROWTH IN OPERATING INCOME (at constant exchange rates(***)) - GROWTH IN RECURRING NET INCOME(**) OF AT LEAST +20% (**) excluding capital gains, asset write-downs and the Flat Glass fines (European Commission) (***) based on average exchange rates for 2006 Performance of Group sectors All of the Group's business sectors saw a rise in like-for-like sales (constant Group structure and exchange rates) in the six months to June 30, 2007 (see Appendix 1).

Organic growth for the Group came in at +6.9% (including a +3.7% price impact and a +3.2% volume effect). Business trends observed in the first quarter - which had been boosted by particularly favorable weather conditions - generally held firm over the three months to June 30, 2007.

Vigorous construction markets in Europe, bolstered by the impact of regulations promoting energy efficiency in the building industry, more than offset the significant downturn in the US housing market. Trading momentum remained very strong in Asia and emerging countries (organic growth of 19%), where the swift expansion of the Group continues apace. Demand related to capital spending and industrial output also remained largely robust.

The Flat Glass sector delivered the Group's strongest growth in like-for-like sales, which surged +12.9%. Construction in Europe is on an upward trend, with a high capacity utilization rate, a very favorable pricing environment and vigorous growth in coated glass for thermal insulation. Sales of automotive glass performed well over the first half of the year. The operating margin for the sector jumped to 13.1%, versus 9.1% in the same year-ago period.

High-Performance Materials reported +2.4% like-for-like sales growth, with a +5.1% advance in the Ceramics & Plastics and Abrasives businesses on the back of robust industrial capital spending. The operating margin for these businesses continued to advance, coming in at 14.0% for first-half 2007 compared to 13.8% for the same year-ago period, while the Reinforcements business delivered an improved 6.7% operating margin versus 3.2% for first-half 2006 despite a dip in sales (down -4.5% on a like-for-like basis). Overall, the sector's operating margin represented 12.1% of sales versus 10.8% of sales over the six months to June 30, 2006.

Read the entire story on the source link below.

600450 Saint-Gobain: Strong First-Half 2007 Growth glassonweb.com

See more news about:

Others also read

Sika, the Burkard family and Saint-Gobain have signed agreements which terminate and resolve their dispute to the common benefit of all parties involved and that of their respective shareholders and stakeholders.
Saint-Gobain Acquires Italian Company Logli Massimo
Saint-Gobain strengthens its glass solutions portfolio.
Mr. Pierre-André de Chalendar
Compagnie de Saint-Gobain’s Board of Directors decides to propose the renewal of the Director’s term of office of Mr. Pierre-André de Chalendar and to co-opt Ms. Dominique Leroy, CEO of Proximus, as an independent Director.
Wicona provides innovative structural glazing solutions to One Bedford Avenue
WICONA, the specialist manufacturer of glazing and glass curtain walling, has worked with specialist contractor GLASSOLUTIONS to deliver the glazing and facades package for One Bedford Avenue, a flagship mixed use development in Central London.
Windows, Doors & Facades 2017: A continuing success story
The fair in Dubai is the central meeting place for worldwide manufacturers and distributors of window, door and facade products.
Providing a clear and safer vision: A new glass solution for LNG Carriers
Vetrotech Saint-Gobain, introduces THERMOVIT© PRO A0, an electrically heated glass solution with A0 fire-resistance in line with IGC International Code for Liquefied Natural Gas (LNG) Carriers.

Add new comment