 |
|
 |
1999 NET INCOME
|
Earnings per share up 15,64 %
At its meeting of March 30, 2000, the Board of Directors of Saint-Gobain reviewed the Group's consolidated financial statements for 1999.
The Group's consolidated financial statements for the year ended December 31, 1999 reflect the full consolidation of Essilor and processing companies in the Flat Glass Division from January 1, 1999 for the first time. For added clarity, key consolidated figures for 1999 are also presented in Appendix 1 excluding the consolidation of Essilor and Flat Glass processing subsidiaries.
The key consolidated figures, which confirm the estimates published in January, are as follows:
 |
Year ended
Dec. 31, 1999 |
Year ended
Dec. 31, 1998 |
| In millions |
FF |
Euro |
FF |
Euro |
| Sales |
150,555 |
22,952 |
116,901 |
17,821 |
| Operating income |
15,179 |
2,314 |
11,647 |
1,776 |
| Dividend income |
171 |
26 |
378 |
58 |
| Interest and other financial charges, net |
(2,152) |
(328) |
(1,959) |
(300) |
| Non-operating costs |
(1,253) |
(191) |
(926) |
(141) |
| Income before tax and before results of sales of non-current assets |
11,945 |
1,821 |
9,140 |
1,393 |
| Results of sales of non-current assets |
2,998 |
457 |
2,585 |
394 |
| Income taxes |
(5,084) |
(775) |
(3,868) |
(589) |
| Amortization of goodwill |
(932) |
(142) |
(668) |
(102) |
| Share in net results of associated companies |
184 |
28 |
567 |
86 |
| Net income before minority interests |
9,111 |
1,389 |
7,756 |
1,182 |
| Minority interests |
(1,069) |
(163) |
(560) |
(85) |
| Net income |
8,042 |
1,226 |
7,196 |
1,097 |
Earnings per share
(in French Francs and euros) |
92.16 |
14.05 |
79.69 |
12.15 |
Net income excluding
capital gains |
5,792 |
883 |
5,184 |
790 |
| Resources from operations (cash flow) |
15,481 |
2,360 |
12,540 |
1,912 |
| Capital expenditure on plant and equipment |
11,230 |
1,712 |
8,450 |
1,288 |
| Acquisition of investments |
16,274 |
2,481 |
13,608 |
2,075 |
| Net indebtedness |
41,365 |
6,306 |
25,489 |
3,886 |
These satisfactory performances, which are slightly higher than the Group's 1999 objectives, 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 as a result of these factors as well as cost-reduction programs 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 full consolidation of Essilor and, to a lesser extent, to the acquisition of Furon. On a comparable structure basis, however, this sector is slightly behind 1998, as a result of the slowdown in the Industrial Ceramics Division.
In the Housing Products Sector, the Group's successful development policy and the buoyant building market in France and the United States more than offset the sharp drop in activity in the Pipe Division, leading to a significant rise in both sales and operating income.
Group sales increased by 28.8% on an actual structure basis. On a comparable structure basis, sales were up 1.5% in euro and 2.4% in local currencies. Excluding the consolidation of Essilor and Flat Glass processing subsidiaries, sales rose 11.5%. Selling prices rose slightly, driven by the recovery in the Flat Glass, Insulation and Building Materials Divisions throughout the year. Sales volumes, however, expanded only modestly on average in relation to 1998. In Europe, the fall-off in activity in Industrial Ceramics and Pipes had a negative impact on first-half sales, but the second half brought a recovery. 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 33.7%; North America 25.5%; rest of the world 7.3%.
Operating income increased 30.3% and represented 10.1% of sales, against 10% in 1998. Excluding the consolidation of Essilor and Flat Glass processing subsidiaries, operating income rose 12.3% and represented 10% of sales. Profitability improved in France and in the Americas and Asia, but declined slightly in other European countries.
Income before tax and before profit on sales of non-current assets rose 30.7%, due to the improvement in operating income. Dividend income fell 55% as a result of the disposal of cross-shareholdings, while net interest charges and non-operating costs both increased.
Profit on sales of non-current assets amounted to Euro 457 million (FF 2,998 million), mainly from the sale on April 30, 1999 of 4.7 million Vivendi shares.
Net income amounts to Euro 1,226 million (FF 8,042 million), up 11.8% relative to 1998. Based on the total number of shares outstanding at December 31, 1999 (87,236,750 shares), earnings per share amounted to Euro 14.05 (FF 92.16) against Euro 12.15 (FF 79.69) for 1998 (90,295,788 shares).
Excluding net profit on sales of non-current assets, net income totaled Euro 883 million (FF 5,792 million), against Euro 790 million (FF 5,184 million) in 1998, an increase of 11.8%. Based on the total number of shares outstanding at December 31, 1999 (87,236,750 shares), earnings per share amounted to Euro 10.12 (FF 66.38) against Euro 8.75 (FF 57.40) for 1998 (90,295,788 shares), an increase of 15.66%.
Cash flow from operations was Euro 2,360 million (FF 15,481 million), up 23.4%. This represents 10.3% of sales against 10.7% in 1998. Before the tax charge of Euro 122 million (FF 800 million) on profit from sales of non-current assets, cash flow from operations amounts to Euro 2,482 million (FF 16,281 million).
Capital expenditure totaled Euro 1,712 million (FF 11,230 million) against Euro 1,288 million (FF 8,450 million) for 1998. It represented 7.5% of sales against 7.2% in 1998.
Investments in securities amounts to Euro 2,481 million (FF 16.3 billion).
Net indebtedness amounts to Euro 6.3 billion (FF 41.3 billion) at December 31, 1999, representing 54.6% of shareholders' equity, including non-voting participating securities.
General Meeting
The Board of Directors also reviewed the accounts of Compagnie de Saint-Gobain, the parent (holding) company. Net income amounts to Euro 574 million (FF 3,764 million) for the year ended December 31, 1999, against Euro 594 million (FF 3,896 million) for 1998.
At the General Meeting of the Company's shareholders, called for June 29, 2000, the Board will recommend the distribution of Euro 304.8 million, against Euro 268.4 million last year. The dividend per share would therefore amount to Euro 3.6, an 12.5% increase over last year. To this would be added a tax credit of Euro 1.80 per share, giving a total of Euro 5.4 per share. The dividend will be paid entirely in cash as from July 3, 2000.
In addition, the Board has decided to recommend that the Shareholders appoint Daniel Bernard, Chairman and Chief Executive Officer of Carrefour, as Director.
Outlook:
The Board has noted a satisfactory success of the Public Offer on Meyer International.
The Group has observed a satisfactory trend since the beginning of the year in all of its businesses.
The Group therefore confirms its objective for the year 2000 of an increase of 15% of its net income per share, excluding capital gains.
APPENDIX 1: KEY CONSOLIDATED FIGURES FOR THE YEAR 1999 BEFORE THE CONSOLIDATION OF ESSILOR AND THE FLAT GLASS PROCESSING SUBSIDIARIES |
|
1999
|
1998
|
Evolution
|
|
M. Euros
|
M. Francs
|
M. Euros
|
M. Francs
|
(%)
|
| Net Sales |
19,878 |
130,391 |
17,821 |
116,901 |
11.5% |
| Operating Income |
1,995 |
13,086 |
1,776 |
11,647 |
12.3% |
| Dividend Income |
38 |
249 |
58 |
378 |
-34.5% |
| Interest and other financial charges, net |
-280 |
-1,836 |
-300 |
-1,959 |
-6.7% |
| Non-operating costs |
-180 |
-1,181 |
-141 |
-926 |
27.7% |
| Income before tax and before capital gains |
1,573 |
10,318 |
1,393 |
9,140 |
12.9% |
| Capital gains |
458 |
3,004 |
394 |
2,585 |
16.2% |
| Income taxes |
-694 |
-4,552 |
-589 |
-3,868 |
17.8% |
| Amortization of goodwill |
-114 |
-747 |
-102 |
-668 |
11.8% |
| Group's share in net results of associated companies |
95 |
623 |
86 |
567 |
10.5% |
| Net income before minority interests |
1,318 |
8,646 |
1,182 |
7,756 |
11.5% |
| Minority interests in consolidated companies |
-76 |
-499 |
-85 |
-560 |
-10.6% |
| Net income |
1,242 |
8,147 |
1,097 |
7,196 |
13.2% |
| Earnings per share (in E. and FF) |
14.24 |
93.41 |
12.15 |
79.69 |
17.2% |
| Net income excluding capital gains |
900 |
5,904 |
790 |
5,184 |
13.9% |
| Earnings per share excluding capital gains (in E. and FF) |
10.32 |
67.69 |
8.75 |
57.40 |
17.9% |
| Cash flow from operations |
2,052 |
13,460 |
1,912 |
12,540 |
7.3% |
| Capital expenditure on plant and equipment |
1,472 |
9,656 |
1,288 |
8,450 |
14.3% |
| Investments in securities |
2,481 |
16,274 |
2,075 |
13,608 |
19.6% |
| Net indebtedness |
5,789 |
37,973 |
3,886 |
25,489 |
49.0% |
APPENDIX 2:
RESULTS BY BUSINESS SECTOR, DIVISION AND MAIN GEOGRAPHIC AREA
(in millions of euros)
|
| I. SALES |
1999
|
1998
|
Evolution on a
real structure basis
|
Evolution on a com.
structure & currency basis
|
| GLASS(1) |
10,217
|
8,171
|
25.0%
|
+2,90%
|
| Flat Glass |
3,718
|
2,270
|
63.8%
|
+0,70%
|
| Insulation & Reinforcements |
2,864
|
2,488
|
15.1%
|
+6,80%
|
| Containers |
3,640
|
3,416
|
6.6%
|
+1,30%
|
| HIGH PERFORMANCE MATERIALS(1) |
4,726
|
2,762
|
71.1%
|
-1,70%
|
| Ceramics & High Performance Plastics & Abrasives |
3,006
|
2,762
|
11.0%
|
-1,70%
|
| Essilor |
1,662
|
-
|
|
|
| HOUSING PRODUCTS(1) |
8,157
|
7,001
|
16.5%
|
+1,30%
|
| Building Materials |
2,625
|
2,233
|
17.6%
|
+4,80%
|
| Building Distribution |
4,078
|
3,325
|
22.6%
|
+8,40%
|
| Pipe |
1,605
|
1,573
|
2.1%
|
-19,90%
|
| INTERNAL SALES |
-148
|
-113
|
31.0%
|
|
| GROUP |
22,952
|
17,821
|
28.8%
|
+1,50%
|
|
| MAIN GEOGRAPHIC AREAS |
|
| France |
7,966
|
6,953
|
14.6%
|
-1,10%
|
| Other European countries |
8,021
|
5,494
|
46.0%
|
+4,20%
|
| North America |
6,058
|
4,512
|
34.3%
|
+8,10%
|
| Rest of the world |
1,729
|
1,547
|
11.8%
|
-19,50%
|
| INTERNAL SALES |
-822
|
-685
|
20.0%
|
|
| GROUP |
22,952
|
17,821
|
28.8%
|
+1,50%
|
| (1) Y including inter-division sales |
(2) excluding currency effect on a comparable basis =+3,9%) |
|
| II OPERATING INCOME |
1999
|
1998
|
Evolution on a
real structure basis
|
| GLASS |
1,053
|
809
|
30.2%
|
| Flat Glass |
328
|
204
|
60.8%
|
| Insulation & Reinforcements |
358
|
273
|
31.1%
|
| Containers |
367
|
332
|
10.5%
|
| HIGH PERFORMANCE MATERIALS |
594
|
325
|
82.8%
|
| Ceramics & High Performance Plastics & Abrasives |
365
|
325
|
12.3%
|
| Essilor |
229
|
-
|
|
| HOUSING PRODUCTS |
664
|
640
|
3.8%
|
| Building Materials |
283
|
250
|
13.2%
|
| Building Distribution |
252
|
193
|
30.6%
|
| Pipe |
129
|
197
|
-34.5%
|
| OTHER |
3
|
2
|
50.0%
|
| GROUP |
2,314
|
1,776
|
30.3%
|
|
| MAIN GEOGRAPHIC AREAS |
|
|
|
| France |
767
|
614
|
24.9%
|
| Other European countries |
668
|
512
|
30.5%
|
| North America |
686
|
459
|
49.5%
|
| Rest of the world |
193
|
191
|
1.0%
|
| GROUP |
2,314
|
1,776
|
30.3%
|
|
| III. CASH FLOW |
1999
|
1998
|
Evolution on a
real structure basis
|
| GLASS |
1,273
|
1,029
|
23.7%
|
| Flat Glass |
408
|
279
|
46.2%
|
| Insulation & Reinforcements |
389
|
323
|
20.4%
|
| Containers |
476
|
427
|
11.5%
|
| HIGH PERFORMANCE MATERIALS |
554
|
288
|
92.4%
|
| Ceramics & High Performance Plastics & Abrasives |
315
|
288
|
9.4%
|
| Essilor |
239
|
-
|
|
| HOUSING PRODUCTS |
690
|
668
|
3.3%
|
| Building Materials |
306
|
267
|
14.6%
|
| Building Distribution |
241
|
202
|
19.3%
|
| Pipe |
143
|
199
|
-28.1%
|
| OTHER |
-157
|
-73
|
115.1%
|
| GROUP |
2,360
|
1,912
|
23.4%
|
|
| MAIN GEOGRAPHIC AREAS |
|
| France |
598
|
563
|
6.2%
|
| Other European countries |
819
|
649
|
26.2%
|
| North America |
644
|
447
|
44.1%
|
| Rest of the world |
299
|
253
|
18.2%
|
| GROUP |
2,360
|
1,912
|
23.4%
|
|
| IV. CAPITAL EXPENDITURE |
|
|
1999
|
1998
|
Evolution on a
real structure basis
|
|
| GLASS |
995
|
837
|
18.9%
|
| Flat Glass |
389
|
203
|
91.6%
|
| Insulation & Reinforcements |
345
|
264
|
30.7%
|
| Containers |
261
|
370
|
-29.5%
|
| HIGH PERFORMANCE MATERIALS |
266
|
131
|
103.1%
|
| Ceramics & High Performance Plastics & Abrasives |
137
|
131
|
4.6%
|
| Essilor |
129
|
-
|
|
| HOUSING PRODUCTS |
393
|
318
|
23.6%
|
| Building Materials |
159
|
135
|
17.8%
|
| Building Distribution |
145
|
107
|
35.5%
|
| Pipe |
89
|
76
|
17.1%
|
| OTHER |
58
|
2
|
|
| GROUP |
1,712
|
1,288
|
32.9%
|
|
| MAIN GEOGRAPHIC AREAS |
|
| France |
439
|
316
|
38.9%
|
| Other European countries |
667
|
453
|
47.2%
|
| North America |
378
|
366
|
3.3%
|
| Rest of the world |
228
|
153
|
49.0%
|
| GROUP |
1,712
|
1,288
|
32.9%
|
|
|
