FINAL RESULTS FOR 2007: CONFIRMATION OF THE FIGURES PUBLISHED AT THE END OF JANUARY 2008


Strong upswing in 2007 results outperforming targets
  • Sales:
    • +4.4% (€43,421 million);
    • +5.8% at constant exchange rates*;
    • +5.0% at constant structure and exchange rates*
  • Operating income:
    • +10.6% (€4,108 million);
    • +11.4% at constant exchange rates*
  • Recurring net income**:
    • +24.2% (€2,114 million)

* based on average exchange rates for 2006
* * excluding capital gains, asset write-downs, and the €694 million provision for Flat Glass fines (European Commission)

2008 objectives: continuing growth drive

  • MODEST GROWTH IN OPERATING INCOME (at constant exchange rates*) AND RECURRING NET INCOME**

* average exchange rates for 2007
** excluding capital gains, asset write-downs, and the Flat Glass fines (European Commission)

2007 DIVIDEND***: €2.05 PER SHARE, UP 20.6%

*** dividend recommended by the Board of Directors for 2007 to be put to the vote of the Annual General Meeting on June 5, 2008


The Group’s 2007 consolidated financial statements were adopted by Saint-Gobain’s Board of Directors at its meeting of Thursday March 20, 2008.

 

2007 consolidated financial statements 

The key consolidated data for the Group, as well as the results by business sector and geographical area set out in the appendix, are the same as the estimated figures published at the end of January (**), and are summarized below:


2006
€ millions
(1)
 2007
€ millions
(2)
 %
change
(2)/(1)

Sales and ancillary revenue

41,596

43,421

+4.4%

 

 

 

 

Operating income

3,714

4,108

+10.6%

 

 

 

 

Non-operating costs*

(367)

(290)*

n.m.

Provision for Flat Glass fines

0

(694)

 

Capital gains and losses and exceptional asset write-downs

 

(27)

 

30

 

n.m.

Dividends received

2

2

n.m.

Business income

3,322

3,156

-5.0%

Net financial expense

(748)

(701)

-6.3%

Income tax

(899)

(926)

+3.0%

Share in net income of associates

7

14

n.m.

Income before minority interests

1,682

1,543

-8.3%

Minority interests

(45)

(56)

+24.4%

 

 

 

 

Recurring net income**

1,702

2,114

+24.2%

Recurring**  earnings per share(1) (in €)

4.62

5.65

+22.3%

Net income

1,637

1,487

-9.2%

Earnings per share (1) (in €)

4.44

3.97

-10.6%

 

Cash flow from operations*

 

3,347

 

3,762

 

+12.4%

Cash flow from operations excluding capital gains tax**

3,374

3,712

+10.0%

Depreciation and amortization

1,717

1,875

+9.2%

Capital expenditure

2,191

2,273

+3.7%

Free cash flow (excluding capital gains tax)**

1,183

1,439

+21.6%

 

Investments in securities

 

584

 

965

 

+65.2%

Net debt

11,599

9,928

-14.4%

*     excluding the provision for Flat Glass fines (European Commission).
**    excluding capital gains and losses, asset write-downs and the provision for Flat Glass fines (European Commission).
(1) calculated based on the number of shares outstanding at December 31 (374,216,152 shares in 2007 versus 368,419,723 in 2006). Based on the weighted average number of shares outstanding (367,124,675 shares in 2007 versus 341,048,210 shares in 2006), recurring earnings per share comes out at €5.76 (compared with €4.99 in 2006), and earnings per share comes out at €4.05 (compared with €4.80 in 2006).


All of the comments published at the end of January (**) regarding the Group’s consolidated financial statements therefore apply to the final figures.

 (**) The press release published at the end of January 2008 detailing the Group’s estimated 2007 results is available on the Saint-Gobain website (www.saint-gobain.com).


Annual General Meeting

The Board of Directors also adopted the accounts of Compagnie de Saint-Gobain, the Group’s parent company.

At the Annual General Meeting called for June 5, 2008, the Board will recommend a dividend payout of €758* million, representing 36% of recurring net income, and equivalent to a dividend per share of €2.05, up 20.6% on 2006. Based on the closing share price on March 20, 2008 (€47.47), this dividend would represent a net yield of 4.3%. The dividend will be paid entirely in cash on June 19, 2008.

* This amount is based on the number of shares with dividend right as of February 29, 2008



2008 outlook and objectives


The Group confirms its objectives as published at the end of January 2008:

  • modest growth in operating income at constant exchange rates (average exchange rates for 2007) and recurring net income**;
  • a solid financial structure and continuing high levels of free cash flow.

** excluding capital gains, asset write-downs and Flat Glass fines (European Commission)

 

Forthcoming results announcement

- Sales for the first quarter of 2008: April 22, 2008, after close of trading on the Paris Bourse.

Investor Relations Department
Mrs Florence TRIOU-TEIXEIRA Tel. : +33 1 47 62 45 19
Mr Alexandre ETUY Tel. : +33 1 47 62 37 15
Mr Vivien DARDEL Tel. : +33 1 47 62 44 29
  Fax : +33 1 47 62 50 62



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