SAINT-GOBAIN CONFIRMS ITS NET INCOME (WITHOUT CAPITAL GAINS) OF EUR 560 MILLION (UP 2.9%) FOR THE FIRST HALF OF 2001

The Board of Directors of Saint-Gobain met on September 20, 2001 to review the final consolidated financial statements of the Group for the six months ended June 30, 2001. The main consolidated results, which are in line with the estimates released on July 26, are as follows:

The Group’s consolidated financial statements for first-half 2000 included the results of Essilor, which was fully consolidated over the entire period. In first-half 2001, however, Essilor was no longer consolidated, as the Group had sold its entire stake in this company in November 2000. For purposes of comparability, the Group’s consolidated financial statements for first-half 2000 are also presented with Essilor accounted for by the equity method.

  First-half 2001 in EUR millions (1) First-half 2000 in EUR millions First-half 2000 pro forma Essilor by equity method in EUR millions (2) Change% (1)/(2)
Net sales 15,286 13,782 12,804 19.4%
Operating income 1,376 1,401 1,271 8.3%
Dividend income 22 22 22 0%
Interest and other financial charges, net (311) (272) (254) 22.4%
Non-operating costs (43) (63) (62) -30.6%
Income before profit on sales of non-current assets and taxes 1,044 1,088 977 6.9%
Profit on sales of non-current assets, net 134 414 414 -67.6%
Provision for income tax (407) (483) (450) -9.6%
Amortization of goodwill (93) (97) (86) 8.1%
Share in net results of equity investees 9 31 50 -82.0%
Net income before minority interests 687 953 905 -24.1%
Minority interests (24) (80) (32) -25%
Net income 663 873 873* -24,1%
Earnings per share (in €) 7.70 10.41 10.41 -26%
Net income excluding capital gains 560 544 544* 2,9%
Earnings per share excluding capital gains (in €) 6.5 6.49 6.49 0.2%
Cash flow from operations 1,390 1,339 1,226** 13.4%
Cash flow excluding capital gains 1,437 1,428 1,315** 9.3%
Depreciation and amortization (incl. goodwill) 839 813 756 11%
Capital expenditure 557 779 695 -19.9%
Investments in securities 537 2,242 2,170 -75.3%
Net indebtedness 8,376 8,421 8,421 -0.5%
Gearing ratio 67% 75% 75% -8 pts

* of which Essilor: EUR 20 million
** of which Essilor: EUR 11 million

The Board of Directors also reviewed the financial statements of Compagnie de Saint-Gobain, the parent company of the Group, which operates as a holding company. These financial statements show net income of EUR 1,027 million for the first six months of 2001, compared with EUR 551 million for the same period of 2000.

Outlook: Group sales in July and August were in line with the trends expected in the second half to reach the objective set for the full year, of 10% growth in net income excluding capital gains. In particular, the three divisions of the Housing Products Sector have recorded significant improvements in their performance.
Nevertheless, the short- and medium-term consequences of the tragic events of September 11, 2001 are for the time being impossible to predict. To date, the first available data show no material impact on the Group’s activity levels.

Appendix 1: Results by business sector, division and geographic area.

 I.SALES First-half 2001 First-half 2000 Change based on actual structure Change based on comparable structure Change based on comparable structure and exchange rates (like-for-like)
by Sector and Division:
Glass Sector (1) 5,967 5,519 +8,1% +6.2% +5.2%
Flat Glass 2,262 2,055 +10.1% +7.3% +8.0%
Insulation & Reinforcements 1,652 1,548 +6.7% +1.7% +0.1%
Containers 2,059 1,921 +7.2% +8.8% +6.2%
High-Performance Materials Sector (1) 2,129 2,996 -28.9% -0.6% -3.1%
Ceramics & Plastics and Abrasives 2,129 2,018 +5.5% -0.6% -3.1%
Essilor 0 978 -100.0%    
Housing Products Sector (1) 7,310 5,343 +36.8% +2.4% +2.0%
Building Materials 1,596 1,527 +4.5% +1.8% -1.2%
Building Materials Distribution 4,914 3,028 +62.3% +4.4% +4.8%
Pipe 916 882 +3.9% -1.4% -0.5%
Internal sales -120 -76      
Group 15,286 13,782 +10.9% +3.6% +2.6%
by geographic area:
France 4,662 4,313 +8.1% +6.1% +6.1%
Other European countries 6,404 4,707 +36.1% +2.5% +3.1%
North America 3,652 3,356 +8.8% +2.6% -4.3%
Rest of the world 1,159 957 +21.1% +5.2% +12.5%
Essilor 0 978 -100.0%    
Internal sales -591 -529 n.s.    
Group 15,286 13,782 +10.9% +3.6% +2.6%


(1) including inter-division eliminations
II. OPERATING INCOME First-half 2001 First-half 2000 Change
by Sector and Division:
Glass Sector 684 589 +16.1%
Flat Glass 274 192 +42.7%
Insulation & Reinforcements 208 199 +4.5%
Containers 202 198 +2.0%
High-Performance Materials Sector 253 399 -36.6%
Ceramics & Plastics and Abrasives 253 269 -5.9%
Essilor 0 130 -100.0%
Housing Products Sector 429 408 +5.1%
Building Materials 130 152 -14.5%
Building Materials Distribution 220 192 +14.6%
Pipe 79 64 +23.4%
Other 10 5  
Group 1,376 1,401 -1.8%
by geographic area:
France 479 425 +12.7%
Other European countries 470 359 +30.9%
North America 297 390 -23.8%
Rest of the world 130 97 +34.0%
Essilor 0 130 -100.0%
Group 1,376 1,401 -1.8%

III. CASH FLOW First-half 2001 First-half 2000 Change
by Sector and Division:
Glass Sector 800 687 +16.4%
Flat Glass 313 230 +36.1%
Insulation & Reinforcements 232 215 +7.9%
Containers 255 242 +5.4%
High-Performance Materials Sector 210 348 -39.7%
Céramiques et Plastiques & Abrasifs 210 224 -6.3%
Essilor 0 124 -100.0%
Housing Products Sector 347 360 -3.6%
Building Materials 129 149 -13.4%
Building Materials Distribution 146 144 +1.4%
Pipe 72 67 +7.5%
Other 33 -56  
Group 1,390 1,339 +3.8%
by geographic area:
France 429 316 +35.8%
Other European countries 495 423 +17.0%
North America 297 341 -12.9%
Rest of the world 169 135 +25.2%
Essilor 0 124 -100.0%
Group 1,390 1,339 +3.8%

IV. CAPITAL EXPENDITURE ON PLANT & EQUIPMENT First-half 2001 First-half 2000 Change
by Sector and Division:
Glass Sector 296 430 -31.2%
Flat Glass 117 189 -38.1%
Insulation & Reinforcements 94 136 -30.9%
Containers 85 105 -19.0%
High-Performance Materials Sector 75 170 -55.9%
Ceramics & Plastics and Abrasives 75 86 -12.8%
Essilor 0 84 -100.0%
Housing Products Sector 186 178 +4.5%
Building Materials 55 66 -16.7%
Building Materials Distribution 115 87 +32.2%
Pipe 16 25 -36.0%
Other 0 1  
Group 557 779 -28.5%
by geographic area:
France 138 166 -16.9%
Other European countries 191 231 -17.3%
North America 141 158 -10.8%
Rest of the world 87 140 -37.9%
Essilor 0 84 -100.0%
Group 557 779 -28.5%

Appendix 2: Consolidated balance sheet at June 30, 2001.

ASSETS At June 30, 2001 At Dec. 31, 2000
Goodwill 6,174 6,004
Other intangible assets, net 1,806 1,766
  7,980 7,770
Property, plant and equipment 23,276 21,938
Less: depreciation -12,818 -11,825
  10,458 10,113
Investments in equity investees 165 393
Investments, at cost 200 178
Marketable securities 178 310
Other non-current assets 803 766
  1,346 1,647
Non-current assets 19,784 19,530
Inventories 5,280 4,752
Trade accounts receivable, net 5,690 4,643
Other accounts receivable 1,183 1,161
Short-term loans 143 139
Marketable securities 456 530
Cash and cash equivalents 824 666
Current assets 13,576 11,891
Total assets 33,360 31,421
LIABILITIES AND SHAREHOLDERS' EQUITY    
Share capital 1,377 1,363
(EUR 16 par value; 137,968,123 shares authorized At June 30, 2001: 86,133,298 shares issued and outstanding (at Dec. 31, 2000: 85,213,263)
Additional paid-in capital and legal retained earnings 2,376 2,270
Retained earnings and net income for the period 8,066 7,760
Cumulative translation adjustments 110 -310
Treasury stock -217 -182
Shareholders’ equity 11,712 10,901
Minority interests 444 823
Net equity of consolidated entities 12,156 11,724
Non-voting participating securities 391 391
Pensions and other post-retirement benefits 1,721 1,682
Deferred tax liability 674 709
Other liabilities 1,372 1,388
Long-term debt 6,069 4,999
Shareholders’ equity and non-current liabilities 22,383 20,893
Trade accounts payable 3,739 3,378
Other payables and accrued expenses 3,508 2,597
Current portion of long-term debt 1,250 1,859
Short-term debt and bank overdrafts 2,480 2,694
Current liabilities 10,977 10,528
Total liabilities and shareholders’ equity 33,360 31,421


20/09/2001