 |
|
 |
SAINT-GOBAIN (ESTIMATED) RESULTS FOR 2000
|
- net sales, up 25.6% to EUR 28.8 billion (FRF 189 billion)
- consolidated net income, up 23.6% to EUR 1.5 billion (nearly FRF 10 billion)
- net income excluding capital gains, up 16.2% to EUR 1 billion (FRF 6.7 billion)
EARNINGS PER SHARE:
EPS, up 26.6% to EUR 17.79
EPS excluding capital gains, up19% to EUR 12.04
KEY EVENTS YEAR 2000 :
- strong organic growth in all three business sectors
- on-going development of Distribution and High Performance Materials
- improved profitability in Glass and High Performance Materials
TARGET FOR 2001:
10% GROWTH IN NET INCOME EXCLUDING CAPITAL GAINS
The Saint-Gobain Group's estimated net income for 2000 climbed 23.6% to an estimated EUR 1,515 million (FRF 9,938 million), including profit on the sale of the Group's entire interest in Essilor in November 2000 and of 4 million Vivendi shares in February 2000.
Net income before profit on sale of non-current assets totals EUR 1,026 million (FRF 6,730 million), an increase of 16.2% compared with 1999. The growth rate target of 15% is achieved, and slightly better despite less buoyant second-half trading condition.
Earnings per share (EPS) rose 26.6% to EUR 17.79 from EUR 14.05 in 1999, based on the 85,213,263 shares outstanding at December 31, 2000 following the cancellation of 5% of capital stock. Excluding profit on sale of non-current assets, EPS stood at EUR 12.04, an increase of 19% compared with 1999.
Based on the estimates presented to the Board of Directors on January 25, 2001, key consolidated figures for 2000 are as follows:
| |
1999 |
2000 est. |
variation |
| Net Sales |
22,952 |
28,825 |
+25.6% |
| Operating Income |
2,314 |
2,691 |
+16.3% |
| Dividend Income |
26 |
25 |
-3.8% |
| Interest and other financial charges, net |
-328 |
-611 |
+86.3% |
| Non-operating costs |
-191 |
-160 |
-16.2% |
| Income before tax and before capital gains |
1,821 |
1,945 |
+6.8% |
| Capital gains |
457 |
583 |
+27.6% |
| Income taxes |
-775 |
-786 |
+1.4% |
| Amortization of goodwill |
-142 |
-185 |
+30.3% |
| Group's share in net results of associated companies |
-28 |
-86 |
+207.1% |
| Net income before minority interests |
1,389 |
1,643 |
+18.3% |
| Minority interests in consolidated companies |
-163 |
-128 |
-21.5% |
| Net income |
1,226 |
1,515 |
+23.6% |
| Earnings per share (in euros) |
14.05 |
17,79 |
+26.6% |
| Net income excluding capital gains |
883 |
1,026 |
+16.2% |
| Earnings per share excluding capital gains (in euros) |
10.12 |
12,04 |
+19.0% |
| Cash flow from operations |
2,36 |
2,625 |
+11.2% |
| Capital expenditure on plant and equipment |
1,712 |
1,679 |
-1.9% |
| Investments in securities |
2,481 |
3,350 |
+35.0% |
| Net debt |
6,306 |
8,296 |
+31.6% |
Essilor was fully consolidated up to June 30, 2000 and was then accounted for by the equity method up to November 15, 2000 when the Group sold its entire interest in this company. Key consolidated data for 1999 and 2000 are also presented – in Appendix 1 – with Essilor accounted for by the equity method up to the date of disposal.
These performances are slightly above the objectives set by the Group for 2000, despite less favorable economic conditions in the second half. They represent the pay-off from the transformation of the business portfolio and the Group's strategy to boost the profitability of its three core businesses, Glass, High-Performance Materials and Housing (see Appendix 2).
Glass Sector sales and earnings were boosted by sustained demand across all business lines and higher Flat Glass and Reinforcements prices.
The High Performance Materials Sector reported only modest growth on an actual structure basis, due to the use of the equity method to account for Essilor in the second half. Excluding Essilor, the Sector turned in a very satisfactory performance, on both an actual and comparable structure basis, thanks to strong performances by the High Performance Ceramics and Plastics division.
Housing Sector profitability contracted sharply, despite robust sales growth, especially in distribution. Significant increases in raw materials and energy costs eroded margins, especially in the Building Materials and Pipe divisions. Building Distribution operating margin was diluted by the Raab-Karcher acquisition, masking a modest improvement in underlying profitability on a comparable basis.
Excluding Essilor, consolidated net sales expanded by 30.8% (25.6% including Essilor). Based on a comparable structure, the growth rates were 11% in euros and 5.5% in local currencies. Sales prices rose 2.1%, reflecting increases in Flat Glass, Reinforcements and Building Materials prices throughout the year 2000. Sales volumes rose sharply in the first half, especially in Europe, but flattened in the second half, due mainly to slacker demand in the United States and Germany.
Out of total sales (excluding Essilor), France contributed 29.6%, the rest of Europe 38.8%, North America 24.2% and the rest of the world 7.4%.
Exluding Essilor, operating income expanded 22.8% (16.3% including Essilor). Operating margin stood at 9.2% (9.3% including Essilor) versus 9.8% in 1999. Excluding both Essilor and the Building Distribution division, operating margin came to 10.6% compared with 10.5% in 1999.
Margins improved in France and the rest of Europe – excluding Building Distribution – as well as in emerging markets, but they contracted in North America due to slower economic growth in the United States in the second half of the year.
Excluding Essilor, income before profit on sale of non-current assets and taxes expanded by 12.7% (6.8% including Essilor). Growth in operating income offset the increase in net interest and other financial charges triggered by the financing of acquisitions made during the year. Excluding Essilor, non-operating costs contracted sharply to EUR 159 million from EUR 185 million in 1999.
Profit on sale of non-current assets, in an amount of EUR 583 million, mainly concerned the sale of 4 million Vivendi shares and the Group's entire interest in Essilor.
Net income climbed 23.6% to EUR 1,515 million. Earnings per share rose 26.6% to EUR 17.79 from EUR 14.05 in 1999, based on the 85,213,263 shares outstanding at December 31, 2000 following the cancellation of 5% of capital stock.
Excluding profit on sale of non-current assets, net income came to EUR 1,026 million versus EUR 883 million in 1999, representing an increase of 16.2%. Based on the number of shares outstanding at December 31, 2000, earnings per share before profit on sale of non-current assets stood at EUR 12.04, up 19% compared with EUR 10.12 in 1999.
Including Essilor, cash flow from operations expanded by 11.2% to EUR 2,625 million. Excluding the EUR 105 million in tax on profit on sale of non-current assets, cash flow from operations stood at EUR 2,730 million, an increase of 10%.
Including Essilor, capital expenditure on plant and equipment totalled EUR 1,679 million, representing 5.8% of sales. Excluding Essilor, capital expenditure came to EUR 1,595 million, representing 5.7% of sales versus 7.4% the previous year.
Including Essilor, expenditure on securities amounted to EUR 3,350 million, including EUR 1,985 million for the Meyer and Raab Karcher acquisitions and EUR 376 million for the buyback of 2.5 million Saint-Gobain shares.
Net debt at December 31, 2000 stood at EUR 8.3 billion, representing approximately 69% of shareholders' equity.
Outlook: the Saint-Gobain Group has set as its target for 2001 a 10% increase in net income before profit on sale of non-current assets, provided no new and significant deterioration in the economic environment.
Appendix 1:
Key proforma consolidated figures for the year 2000
with Essilor accounted for by the equity method (until Nov. 15,2000)
(in millions of euros)
| |
1999 |
2000 est. |
change |
| Net Sales |
21,290 |
27,847 |
+30.8% |
| Operating Income |
2,085 |
2,561 |
+22.8% |
| Dividend Income |
26 |
25 |
-3.8% |
| Interest and other financial charges, net |
-298 |
-593 |
+99,0% |
| Non-operating costs |
-185 |
-159 |
-14.1% |
| Income before tax and before capital gains |
1,628 |
1,834 |
+12.7% |
| Capital gains |
457 |
583 |
+27.6% |
| Income taxes |
-725 |
-753 |
+3.9% |
| Amortization of goodwill |
-122 |
-174 |
+42.6% |
| Group's share in net results of associated companies |
67 |
106 |
+58.2% |
| Net income before minority interests |
1,305 |
1,596 |
+22.3% |
| Minority interests in consolidated companies |
-79 |
-81 |
+2.5% |
| Net income |
1,226 |
1,515 |
+23.6% |
| Earnings per share (in euros) |
14.05 |
17.79 |
+26.6% |
| Net income excluding capital gains |
883 |
1,026 |
+16.2% |
| Earnings per share excluding capital gains (in euros) |
10.12 |
12.04 |
+19.0% |
| Cash flow from operations |
2,131 |
2,512 |
+17.9% |
| Capital expenditure on plant and equipment |
1,583 |
1,595 |
+0.8% |
| Investments in securities |
2,436 |
3,278 |
+34.6% |
| Net debt |
6,142 |
8,296 |
+35.1% |
Appendix 2:
Results by Business Sector, Division and Geographic Area
(in millions of euros)
| I. SALES |
1999 |
2000 est. |
change on an actual structure basis |
change on a comparable structure in euros |
change on a comparable structure and currency basis |
| by sector and division: |
|
|
|
|
|
| Glass (1) |
10,217 |
11,315 |
+10.7% |
+10.0% |
+4.3% |
| Flat Glass |
3,718 |
4,165 |
+12.0% |
+11.7% |
+7.8% |
| Insulation and Reinforcements |
2,864 |
3,254 |
+13.6% |
+11.4% |
+4.7% |
| Containers |
3,640 |
3,906 |
+7.3% |
+7.2% |
+0.4% |
| High Performance Materials & Plastics (1) |
4,726 |
5,074 |
+7.4% |
+16.2% |
+6.8% |
| Ceramics and H.P. Plastics & Abrasives |
3,066 |
4,096 |
+33.6% |
+16.2% |
+6.8% |
| Essilor |
1,662 |
978 |
-41.1% |
|
|
| Housing Products (1) |
8,157 |
12,598 |
+54.4% |
+10.4% |
+6.6% |
| Building Materials |
2,625 |
3,067 |
+16.8% |
+14.3% |
+3.8% |
| Building Distribution |
4,078 |
7,930 |
+94.5% |
+10.1% |
+10.1% |
| Pipe |
1,605 |
1,778 |
+10.8% |
+5.6% |
+3.2% |
| internal sales |
-306 |
-350 |
|
|
|
| Group |
22,952 |
28,825 |
+25.6% |
+11.0% |
+5.5% |
| |
|
|
|
|
|
| by geographic area: |
|
|
|
|
|
| Essilor |
1,662 |
978 |
-41.1% |
|
|
| France |
7,631 |
8,543 |
+12.0% |
+8.7% |
+8.7% |
| Other European Countries |
7,561 |
11,211 |
+48.3% |
+6.0% |
+4.6% |
| North America |
5,306 |
7,002 |
+32.0% |
+17.3% |
+1.2% |
| Rest of the world |
1,614 |
2,149 |
+33.1% |
+31.8% |
+14.7% |
| internal sales |
-822 |
-1,058 |
|
|
|
| Group |
22,952 |
28,825 |
+25.6% |
+11.0% |
+5.5% |
(1) including inter-divisions eliminations
| II. OPERATING INCOME |
1999 |
2000 est. |
change |
| |
|
|
|
| by sector and division: |
|
|
|
| Glass |
1,053 |
1,229 |
+16.8% |
| Flat Glass |
328 |
430 |
+31.0% |
| Insulation and Reinforcements |
358 |
426 |
+18.9% |
| Containers |
367 |
374 |
+2.0% |
| High Performance Materials & Plastics |
594 |
666 |
+12.1% |
| Ceramics and H.P. Plastics & Abrasives |
365 |
535 |
+46.8% |
| Essilor |
229 |
130 |
-43.1% |
| Housing Products |
664 |
778 |
+17.1% |
| Building Materials |
283 |
251 |
-11.2% |
| Building Distribution |
252 |
422 |
+67.4% |
| Pipe |
129 |
105 |
-18.7% |
| misc. |
3 |
18 |
|
| Group |
2,314 |
2,691 |
+16.3% |
| by geographic area: |
|
|
|
| France |
701 |
798 |
+13.8% |
| Other European Countries |
602 |
786 |
+30.6% |
| North America |
607 |
740 |
+21.9% |
| Rest of the world |
175 |
237 |
+35.4% |
| Essilor |
229 |
130 |
-43.42% |
| Group |
2,314 |
2,691 |
+16.3% |
| III. CASH FLOW |
1999 |
2000 est. |
change |
| |
|
|
|
| by sector and division: |
|
|
|
| Glass |
1,273 |
1,405 |
+10.4% |
| Flat Glass |
408 |
472 |
+15.7% |
| Insulation and Reinforcements |
389 |
454 |
+16.7% |
| Containers |
476 |
479 |
+0.6% |
| High Performance Materials & Plastics |
554 |
572 |
+3.2% |
| Ceramics and H.P. Plastics & Abrasives |
315 |
448 |
+42.2% |
| Essilor |
239 |
124 |
-48.1% |
| Housing Products |
690 |
687 |
-0.4% |
| Building Materials |
306 |
271 |
-11.4% |
| Building Distribution |
241 |
296 |
+22.8% |
| Pipe |
143 |
120 |
-16.1% |
| misc. |
-157 |
-39 |
|
| Group |
2,360 |
2,625 |
+11.2% |
| by geographic area: |
|
|
|
| France |
526 |
616 |
+17.1% |
| Other European Countries |
761 |
898 |
+18.0% |
| North America |
566 |
667 |
+17.8% |
| Rest of the world |
268 |
320 |
+19.4% |
| Essilor |
239 |
124 |
-48.1% |
| Group |
2,360 |
2,625 |
+11.2% |
| IV. CAPITAL EXPENDITURE |
1999 |
2000 est. |
change |
| ON PLANT AND EQUIPMENT |
|
|
|
| |
|
|
|
| by sector and division: |
|
|
|
| Glass |
995 |
958 |
-3.7% |
| Flat Glass |
389 |
423 |
+8.7% |
| Insulation and Reinforcements |
345 |
257 |
-25.5% |
| Containers |
261 |
278 |
+6.5% |
| High Performance Materials & Plastics |
266 |
283 |
+6.4% |
| Ceramics and H.P. Plastics & Abrasives |
137 |
199 |
+45.3% |
| Essilor |
129 |
84 |
-34.9% |
| Housing Products |
393 |
436 |
+10.9% |
| Building Materials |
159 |
170 |
+6.9% |
| Building Distribution |
145 |
198 |
+36.6% |
| Pipe |
89 |
68 |
-23.6% |
| misc. |
58 |
2 |
|
| Group |
1,712 |
1,679 |
-1.9% |
| by geographic area: |
|
|
|
| France |
398 |
431 |
+8.3% |
| Other European Countries |
653 |
535 |
-18.1% |
| North America |
320 |
356 |
+11.3% |
| Rest of the world |
212 |
273 |
+28.8% |
| Essilor |
129 |
84 |
-34.9% |
| Group |
1,712 |
1,679 |
-1.9% |
25/01/2001
|
|
|
