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First quarter 1999 consolidated sales
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Net consolidated sales of the Saint-Gobain Group for the first quarter of 1999 amounted to 4,400 million (FF 28,862 million), a 4.5% increase relative to the 4,210 million (FF 27,618 million) for the same period in 1998. Based on a comparable structure, sales decreased by 4.8% in euro and 0.7% in local currencies.
These results need to be put in perspective in making comparisons with the very good first quarter of 1998, which benefited from favourable weather conditions and record-breaking business volumes in the Pipe division.
The breakdown of sales by operating sector, division and major geographical area is as follows:
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Q1 Sales, 1998
(in millions of euro)
|
Q1 Sales, 1999
(in millions of euro)
|
Change based
on actual structure
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Change based on
comparable structure
and exchange rates
|
| Glass (1) |
1,957
|
2,041
|
4.3%
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2.5%
|
| Flat Glass |
565
|
551
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-2.6%
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4.4%
|
| Insulation and Reinforcements |
590
|
637
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7.9%
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3.0%
|
| Packaging |
803
|
854
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6.4%
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0.8%
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| High Performance Materials (1) |
731
|
658
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-9.9%
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-6.3%
|
Ceramics, High Performance
Plastics and Abrasives |
731
|
658
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-9.9%
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-6.3%
|
| Housing (1) |
1,540
|
1,728
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12.2%
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-1.5%
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| Building Materials |
483
|
540
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11.7%
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11.0%
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| Specialised Distribution |
703
|
894
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27.1%
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6.9%
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| Pipe |
366
|
333
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-9.0%
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-26.9%
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| INTERNAL SALES |
-18
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-27
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| Total Group sales |
4,210
|
4,400
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4.5%
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-0.7%
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| SALES BY GEOGRAPHICAL AREA |
|
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| France |
1,678
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1,681
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0.2%
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-7.8%
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| Other European countries |
1,269
|
1,465
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15.5%
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1.3%
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| Americas and Asia |
1,418
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1,411
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-0.5%
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5.5%
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| INTERNAL SALES |
-155
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-157
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| Total Group sales |
4,210
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4,400
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4.5%
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-0.7%
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(1) including inter-division eliminations
The Glass Sector recorded a satisfactory level of demand both in Europe and in the United States, thanks namely to vigorous growth in the building industry.
The High Performance Materials Sector was adversely affected by the slowdown in electro-fused ceramics and refractories, part of the Industrial Ceramics Division, which began in the second half of 1998. Sales of the Ceramics and Abrasives Division nevertheless remained stable compared with the fourth quarter of 1998.
The Housing Sector showed mixed results: on the one hand, sales of the Building Materials and Specialised Distribution Divisions rose significantly, driven by strong activity in the USA and France; on the other, the Pipe Division's sales slid back sharply, mainly due to a large drop in activity in Brazil and to lower purchases by oil-exporting countries. Orders did, however, increase in the course of the quarter, therefore better performance can be expected in the second half year.
Outlook:
With buoyant growth in the European building industry and sustained activity in North America, the Group confirms its objective of 15% growth in earnings per share in 1999, excluding non-recurring capital gains and after the 5% capital reduction which will be submitted for approval at the next Shareholders' General Meeting.
04/05/99
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