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FINAL RESULTS FOR 2005:
Confirmation of the figures published at the end of January 2006 |
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2005: ANOTHER YEAR OF GROWTH
Excluding the impact of British Plaster Board (BPB), consolidated at December 1, 2005:
- SALES +8.4% (to EUR 34,873 million)
- OPERATING INCOME +4.6% (to EUR 2,868 million)
- BUSINESS INCOME + 8.0% (to EUR 2,611 million)
- NET INCOME +6.4% (to EUR 1,318 million)
Including the impact of the consolidation, at December 1, 2005,
of British Plaster Board (BPB), together with the one-off items associated with this acquisition
- SALES +9.1% (to EUR 35,110 million)
- OPERATING INCOME +4.3% (to EUR 2,860 million)
- BUSINESS INCOME +5.6%: (to EUR 2,554 million)
- NET INCOME +2.0% (to EUR 1,264 million)
DIVIDEND FOR 2005 (recommended for approval by the AGM): EUR 1.36 per share, up 6.3%.
2006: OBJECTIVES CONFIRMED
• Between 23% and 25% growth in operating income at constant exchange rates*
• Between 18% and 20% growth in net income excluding profit (loss) on sales of non-current assets
• Continuing strong free cash flow levels
(*) based on average 2005 exchange rates
At its meeting of Thursday March 23, 2006, the Board of Directors of Saint-Gobain adopted the Group’s consolidated financial statements for 2005.
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Analysis of the 2005 key consolidated data: |
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The key consolidated data for the Group, as well as the results by business sector and geographical area set out in the appendix, are (with the exception of net debt diminishing by €3M), the same as the estimated figures published at the end of January(**). These figures are as follows:
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2004
(IFRS)
In EUR millions (1) |
2005
(excl. BPB)
In EUR millions (2) |
Change % (2)/(1) |
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2005
(incl. PBP) In EUR millions (3) |
| |
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Net sales* |
32,172 (a) |
34,873 (a) |
+8.4% |
|
35,110* |
Operating income |
2,743 |
2,868 |
+4.6% |
|
2,860 |
Non-operating costs |
(271) |
(252) |
-7.0% |
|
(288) |
Other business income and expenses |
(54) |
(5) |
n.m. |
|
(18) |
Business income |
2,418 |
2,611 |
+8.0% |
|
2,554 |
Net financial income (expense) |
(535) |
(550) |
+2.8% |
|
(569) |
Income taxes |
(616) |
(721) |
+17.0% |
|
(701) |
Share in net income of equity investees |
8 |
8 |
n.s. |
|
10 |
Income before minority interests |
1,275 |
1,348 |
+5.7% |
|
1,294 |
Minority interests |
(36) |
(30) |
-16,7% |
|
(30) |
Net income |
1,239 |
1,318 |
+6.4% |
|
1,264 |
Earnings per share (in EUR) |
3.63 |
3.82 |
+5.2% |
|
3.66 |
Net income excluding profit (loss) on sales of non-current assets |
1,289 |
1,328 |
+3.0% |
|
1,284 |
Earnings per share excluding profit (loss) on sales of non-current assets (in EUR) |
3.78 |
3.85 |
+1.9% |
|
3.72 |
Cash flow from operations |
2,639 |
2,767 |
+4.9% |
|
2,35 |
Cash flow from operations excluding capital gains tax |
2,635 |
2,767 |
+5.0% |
|
2,730 |
Capital expenditure |
1,540 (b) |
1,705 (b) |
+10.7% |
|
1,756 (b) |
Investments in securities |
899 (c) |
1,208 (c) |
+34.4% |
|
7,137 (c) |
Depreciation and amortization |
1,374 |
1,396 |
+1.6% |
|
1,420 |
Net debt |
6,218 |
6,571 |
+5.7% |
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12,850 |
(a) including ancillary revenue of EUR 250 million in 2005, up from EUR 190 million in 2004.
(b) excluding capital leases of EUR 21 million in 2005, down from EUR 28 million in 2004.
(c) including share buy-backs of EUR 146 million in 2005 vs. EUR 241 million in 2004.
All of the comments made at the end of January (**) about the Group’s consolidated financial statements therefore apply to the final figures.
(**) The press release relating to the Group’s estimated 2005 results – published at the end of January 2006 – is available on the Saint-Gobain website at www.saint-gobain.com.
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Asbestos claims against CertainTeed in the United States: |
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The Group confirms the figures and comments relating to 2005, published at the end of January (**) concerning this issue.
Regarding the legislative effort to create a Federal asbestos trust fund, a Senate vote held in mid-February to waive a technical budgetary requirement failed to obtain the 60 votes needed to proceed to a debate and ultimate vote on the merits of the Bill. Although there are some continuing efforts to revive the Bill, the probability of success seems to be remote.
In the meantime, the publicity surrounding the broken asbestos tort system in the U.S. has prompted a number of States to consider and adopt medical criteria requirements and tort reform measures designed to reduce abuses of the system.
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Annual General Meeting: |
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The Board of Directors also adopted the accounts of Compagnie de Saint-Gobain, the parent company. Net income amounted to EUR 525 million for the year ended December 31, 2005, compared with EUR 766 million for 2004 which beneficiated from the dividend received because of the profit on sales of Terréal divested in 2003.
At the General Meeting of the Company’s shareholders, called for June 8, 2006, the Board will recommend the distribution of EUR 460 million (representing 35.8% of net income excluding capital gains). The dividend per share would therefore amount to EUR 1.36, an increase of 6.3% over last year. Based on the closing share price on December 30th 2005 (€50.25), this dividend would represent a gross yield of 2.71%. The dividend will be paid entirely in cash as from June 22, 2006.
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2006 outlook and objectives: |
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The Group confirms that in 2006 it will aim to achieve between 23 and 25% growth in operating income at constant exchange rates (average 2005 exchange rates), and between 18 and 20% growth in net income, excluding profit (loss) on sales of non-current assets. The group also aims to maintain strong free cash flow levels.
(**) The press release relating to the Group’s estimated 2005 results – published at the end of January 2006 – is available on the Saint-Gobain website at www.saint-gobain.com.
Forthcoming results announcements:
- Sales for the first quarter of 2006: April 27, 2006, after close of trading on the Paris stock-exchange.
 Access to detailed figures
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