 |
|
 |
SAINT-GOBAIN, 1999 RESULTS (ESTIMATED)
Earnings per share growth: +15.4%
|
The Group's 1999 consolidated financial statements reflect the consolidation of Essilor and Flat Glass processing subsidiaries from January 1, 1999.
The key consolidated figures for 1999 are also presented in Appendix 1 excluding Essilor and Flat Glass processing subsidiaries.
Consolidated net income of the Saint-Gobain Group is estimated at€1,223 million (FF,8,022 million), an increase of 11.5% over 1998. This includes the capital gain arising from the partial unwinding of cross-shareholdings with the Vivendi Group.
Excluding capital gains on disposals, net income amounts to€880 million (FF 5,772 million), an increase of 11.4% over 1998.
Based on the total number of issued shares at December 31, 1999 (87,236,750 shares) and following the cancellation of 5% of share capital on June 24, 1999, earnings per share amount to €14.02 (FF 91.97) an increase of 15.4% over 1998 (€12.15 or FF,79.70).
The key consolidated figures based on current estimates presented to the board of directors at its meeting of January 27, 2000, are as follows :
| |
1999 estimated |
1998 |
| (In millions) |
M€ |
MF |
M€ |
MF |
| Sales |
22,961 |
150,614 |
17,821 |
116,901 |
| Operating income |
2,311 |
15,159 |
1,776 |
11,647 |
| Dividend income |
25 |
164 |
58 |
378 |
| Interest and other financial charges, net |
-330 |
-2,165 |
-300 |
-1,959 |
| Non-operating costs |
-190 |
-2,165 |
-141 |
-926 |
| Income before tax and before profit on sales of non-current assets |
1,816 |
11,912 |
1,393 |
9,140 |
| Profit on sales of non-current assets |
458 |
3,004 |
394 |
2,585 |
| Income taxes |
-780 |
-5,117 |
-589 |
-3,868 |
| Amortization of goodwill |
-140 |
-918 |
-102 |
-668 |
| Share in net results of associated companies |
28 |
184 |
86 |
567 |
| Net income before minority interests |
1,382 |
9,065 |
1,182 |
7,756 |
| Minority interests |
-159 |
-1,043 |
-85 |
-560 |
| Net income |
1,223 |
8,022 |
1,097 |
7,196 |
| Earnings per share (in euros and francs) |
14,02 |
91,97 |
12,15 |
79,69 |
| Net income excluding capital gains |
880 |
5,772 |
790 |
5,184 |
| Resources from operations (cash flow) |
2,325 |
15,251 |
1,912 |
12,540 |
| Capital expenditure on plant and equipment |
1,618 |
10,613 |
1,288 |
8,450 |
| Acquisition of investments |
2,582 |
16,937 |
2,075 |
13,608 |
| Net indebtedness |
6,365 |
41,752 |
3,886 |
25,489 |
These satisfactory performances, which are slightly higher than the objectives fixed by the Group for 1999, stem from the strategy of development and improved profitability implemented by the Group in its three operating sectors : Glass, High Performance Materials and Housing Products (see appendix 2).
The Glass sector felt the benefits of both sustained demand in all its business lines and price increases in the Flat Glass and Insulation Divisions. Profitability shows a good improvement due to the above as well as cost-reduction programmes implemented in recent years.
The High Performance Materials and Plastics sector recorded a strong increase in sales and operating income on an actual structure basis, due to the consolidation of Essilor and, to a lesser extent, the Furon acquisition. On a comparable structure basis, the sector is slightly behind 1998 as a result of the slowdown in the Industrial Ceramics division.
The Housing Product sector recorded significant growth in sales and operating income, despite a large drop in the Pipe Division, due to the Group's development policy and the buoyant building market in France and the United States.
Sales increased by 28.8% on an actual structure basis. Before the consolidation of Essilor and the Flat Glass processing subsidiaries, sales increased by 11.5% and, on a comparable structure basis, by 1.5% in euro and 2.4% in local currencies. Current selling prices are slightly higher driven by the recovery in the Flat Glass, Insulation and Building Materials Divisions throughout 1999. Sales volumes increased slightly on average over 1998: Europe suffered from the negative contribution of the Pipe and Industrial Ceramics Divisions in the first six months of the year, but recovered in the second half. The United States, on the other hand, led the Group's growth in the first half but volume dropped at the end of the year.
The breakdown of sales is as follows : France 33.5% ; other European countries : 33.8% ; Americas and Asia : 32.7%.
Operating income increased 30.1% and represented 10.1% of sales against 10% in 1998. Excluding the consolidation of Essilor and the Flat Glass processing subsidiaries, operating income rose 12% and represented 10% of sales. Profitability improved in France and in Americas/Asia but declined slightly in other European countries.
Income before tax and before profit on sales of non-current assets rose 30% because of the improvement in operating income. Dividend income dropped 57% due to the disposal of cross-shareholdings, while net interest charges and non-operating costs both increased.
Profit on sales of non-current assets amounted to strategy €458 million (FF,3,004 million), mainly from the sale of 4.7 million Vivendi shares on April 30, 1999.
Net income amounts to €1,223 million (FF 8,022 million), up 11.5% over 1998.
Excluding net profit on sales of non-current assets, net income totalled €880 million (FF 5,772 million) against €790 million (FF 5,184 million) in 1998, an increase of 11.4%. Based on the total number of issued shares at December 31, 1999 (87,236,750 shares), earnings per share amounted to €10.09 (FF 66.19), an increase of 15.3% over 1998 (€8.75 or FF 57.40).
Cash flow from operations was €2,325 million (FF 15,251 million), up 22%. This represents 10.1% of sales, against 10.7% in 1998. Before the tax charge on profit from sales of non-current assets of €123 million (FF 807 million), cash flow from operations amounts to €2 448 million (FF 16,058 million).
Capital expenditure totalled €1 618 million (FF 10,613 million), against €1,288 million (FF 8,450 million) in 1998, an increase of 26%. It represents 7% of sales against 7.2% in 1998. Excluding the consolidation of Essilor and Flat Glass processing subsidiaries, capital expenditure was €1,382 million, an increase of 7% over 1998.
Investments in securities amounted to €2,582 million (FF 16,937 million), including €475 million for the Furon acquisition, 526 million (FF 3,450 million) for the acquisition of the balance of Poliet shares and €14 million (FF 4,684 million) for the buy-back of 4,544,000 Compagnie de Saint-Gobain shares.
Net indebtedness amounts to €6.4 billion (FF 42 billion) at December 31, 1999 representing a gearing ratio of around 57%.
The analysis by geographical area shows continuing good performances mainly in North and South America, and in France.
Outlook : The Saint-Gobain Group has set an objective for the year 2000 of an increase in net income, excluding capital gains, of at least 10%.
APPENDIX 1: KEY CONSOLIDATED FIGURES FOR THE YEAR 1999 (ESTIMATED) BEFORE THE CONSOLIDATION OF ESSILOR AND THE FLAT GLASS PROCESSING SUBSIDIARIES
|
| |
1999 (estimated) |
1998 |
Evolution (%) |
| |
M. of€E. |
M. of F.F. |
M. of E. |
M. of F.F. |
|
| Net Sales |
19,878 |
130,391 |
17,821 |
116,901 |
11.5% |
| Operating Income |
1,991 |
13,060 |
1,776 |
11,647 |
12.1% |
| Dividend Income |
37 |
243 |
58 |
378 |
-36,2% |
| Interest and other financial charges, net |
-279 |
-1,830 |
-300 |
-1,959 |
-7,0% |
| Non-operating costs |
-182 |
-1,194 |
-141 |
-926 |
29,1% |
| Income before tax and before capital gains |
1,567 |
10,279 |
1,393 |
9,140 |
12,5% |
| Capital gains |
458 |
3,004 |
394 |
2,585 |
16,2% |
| Income taxes |
-695 |
-4,559 |
-590 |
-3,868 |
17,8% |
| Amortization of goodwill |
-114 |
-748 |
-102 |
-668 |
11,8% |
| Group's share in net results of associated companies |
95 |
623 |
86 |
567 |
10,5% |
| Net income before minority interests |
1,311 |
8,600 |
1,182 |
|
|
| Minority interests in consolidated companies |
-73 |
-479 |
-85 |
|
|
| Net income |
1,238 |
8,121 |
1,097 |
|
|
| Earnings per share (in€E. and FF) |
14.19 |
93.08 |
12.15 |
|
|
| Net income excluding capital gains |
895 |
5,871 |
790 |
|
|
| Earnings per share excluding capital gains (in E. and FF) |
10.26 |
67.30 |
8.75 |
|
|
| Cash flow from operations |
2,045 |
13,414 |
1,912 |
|
|
| Capital expenditure on plant and equipment |
1,382 |
9,065 |
1,288 |
|
|
| Investments in securities |
2,446 |
16,045 |
2,073 |
|
|
| Net indebtedness |
5,843 |
38,328 |
3,886 |
|
|
APPENDIX 2: RESULTS BY BUSINESS SECTOR, DIVISION AND MAIN GEOGRAPHIC AREA (in millions of euros)
|
| I. SALES |
1998 |
1999 (estimated) |
Evolution on a real structure basis & in euros |
Evolution on a comp. struct. & currency basis |
| BUSINESS SECTORS AND DIVISIONS |
|
|
|
|
| GLASS(1) |
8,171 |
10,220 |
+25,1% |
+3,9% |
| Flat Glass |
2,270 |
3,721 |
+56,1% |
+5,3% |
| Insulation & Reinforcements |
2,488 |
2,864 |
+15,1% |
+5,5% |
| Containers |
3,416 |
3,640 |
+6,6% |
+1,6% |
| HIGH PERFORMANCE MATERIALS(1) |
2,762 |
4,729 |
+71,2% |
-2,1% |
| Ceramics & High Performance Plastics & Abrasives |
2,762 |
3,066 |
+11,0% |
-2,1% |
| Essilor |
0 |
1,665 |
n.a. |
n.a. |
| HOUSING PRODUCTS(1) |
7,001 |
8,158 |
+16,5% |
+2,6% |
| Building Materials |
2,233 |
2,625 |
+17,6% |
+7,5% |
| Building Distribution |
3,325 |
4,077 |
+22,6% |
+8,3% |
| Pipe |
1,573 |
1,606 |
+2,1% |
-18,1% |
| INTERNAL SALES |
-112 |
-146 |
n.a. |
n.a. |
| GROUP |
17,822 |
22,961 |
+28,8% |
+2,4% |
| MAIN GEOGRAPHIC AREAS |
|
|
|
|
| France |
6,953 |
7,967 |
+14,6% |
-1,1% |
| Other European countries |
5,493 |
8,016 |
+45,9% |
+4,1% |
| America/Asia |
6,024 |
7,755 |
+28,7% |
+3,8% |
| INTERNAL SALES |
-648 |
-778 |
+20,1% |
n.a. |
| GROUP |
17,822 |
22,961 |
+28,8% |
+2,4% |
| |
|
|
|
|
(1) including inter-division sales
|
| II . OPERATING INCOME |
1 998 |
1999 (estimated) |
Evolution on a real structure |
| BUSINESS SECTORS AND DIVISIONS |
|
|
|
| GLASS |
809 |
1,052 |
+29,9% |
| Flat Glass |
204 |
328 |
+60,8% |
| Insulation & Reinforcements |
273 |
358 |
+31,1% |
| Containers |
332 |
366 |
+10,2% |
| HIGH PERFORMANCE MATERIALS |
325 |
593 |
+82,5% |
| Ceramics & High Performance Plastics & Abrasives |
325 |
365 |
+12,3% |
| Essilor |
0 |
228 |
n.a. |
| HOUSING PRODUCTS |
640 |
663 |
+3,6% |
| Building Materials |
250 |
282 |
+12,8% |
| Building Distribution |
193 |
252 |
+30,6% |
| Pipe |
197 |
129 |
-34,5% |
| OTHER |
2 |
3 |
n.a. |
| GROUP |
1,776 |
2,311 |
+30,1% |
| MAIN GEOGRAPHIC AREAS |
|
|
|
| France |
614 |
768 |
+25,1% |
| Other European countries |
513 |
658 |
+28,3% |
| America/Asia |
650 |
885 |
+36,2% |
| GROUP |
1,776 |
2,311 |
+30,1% |
| III. CASH FLOW |
1 998 |
1999 (estimated) |
Evolution on a real structure |
| BUSINESS SECTORS AND DIVISIONS |
|
|
|
| GLASS |
1,029 |
1,274 |
+23,8% |
| Flat Glass |
279 |
409 |
+46,6% |
| Insulation & Reinforcements |
323 |
390 |
+20,7% |
| Containers |
427 |
475 |
+11,2% |
| HIGH PERFORMANCE MATERIALS |
288 |
524 |
+81,9% |
| Ceramics & High Performance Plastics & Abrasives |
288 |
314 |
+9,0% |
| Essilor |
0 |
210 |
n.a. |
| HOUSING PRODUCTS |
668 |
684 |
+2,4% |
| Building Materials |
267 |
303 |
+13,5% |
| Building Distribution |
202 |
238 |
+17,8% |
| Pipe |
199 |
143 |
-28,1% |
| OTHER |
-73 |
-157 |
n.a. |
| GROUP |
1,912 |
2,325 |
+21,6% |
| MAIN GEOGRAPHIC AREAS |
|
|
|
| France |
563 |
580 |
+3,0% |
| Other European countries |
649 |
815 |
+25,6% |
| America/Asia |
700 |
930 |
+32,9% |
| GROUP |
1,912 |
2,325 |
+21,6% |
| IV. CAPITAL EXPENDITURE ON PLANT AND EQUIPMENT |
1 998 |
1999 (estimated) |
Evolution on a real structure |
| GLASS |
839 |
975 |
+16,2% |
| Flat Glass |
203 |
365 |
+79,8% |
| Insulation & Reinforcements |
264 |
351 |
+33,0% |
| Containers |
369 |
259 |
-29,8% |
| HIGH PERFORMANCE MATERIALS |
131 |
262 |
+100,0% |
| Ceramics & High Performance Plastics & Abrasives |
131 |
132 |
+0,8% |
| Essilor |
0 |
130 |
n.a. |
| HOUSING PRODUCTS |
319 |
380 |
+19,1% |
| Building Materials |
135 |
150 |
+11,1% |
| Building Distribution |
107 |
147 |
+37,4% |
| Pipe |
76 |
83 |
+9,2% |
| OTHER |
-1 |
1 |
n.a. |
| GROUP |
1,288 |
1,618 |
+25,6% |
| MAIN GEOGRAPHIC AREAS |
|
|
|
| France |
319 |
473 |
+48,3% |
| Other European countries |
457 |
634 |
+38,7% |
| America/Asia |
519 |
511 |
-1,5% |
| GROUP |
1,288 |
1,618 |
+25,6% |
|
|
