Consolidated sales for the first nine months of 2002
CONSOLIDATED SALES
FOR THE FIRST NINE MONTHS OF 2002: UP 0.6%
ON COMPARABLE STRUCTURE AND EXCHANGE RATES BASIS
Saint-Gobain Group sales for the first nine months of 2002 amounted to EUR 22,927 million, on a par with
the EUR 22,932 million reported for the same period of 2001.
Based on a comparable Group structure, sales were down 1.4% in euros and up 0.6% in local
currencies. Resilient prices boosted sales by 0.9%, offsetting the 0.3% negative impact of slightly lower
volumes.
The breakdown of sales by operating sector, division and major geographical area is as follows:
Sales, 9 months
to Sept. 30,
2002
(in EUR millions)
Sales, 9 months
to Sept. 30,
2001
(in EUR millions)
% change
incl. changes
in structure
% change
comparable
structure
in euro
% change
based on
comparable
structure and
exchange rates
(like-for-like)
SECTORS & DIVISIONS
GLASS (1)
Flat Glass
Insulation and Reinforcements
Containers
HIGH-PERFORMANCE MATERIALS (1)
Ceramics, High-Perf. Plastics and Abrasives
HOUSING PRODUCTS (1)
Building Materials
Building Materials Distribution before transfer
Building Materials Distribution after transfer
Pipe before transfer
Pipe after transfer
INTERNAL SALES (INTER-SECTOR)
GROUP
GEOGRAPHIC AREAS
France
Other European countries
North America
Rest of the world
INTERNAL SALES
GROUP
8,946
3,308
2,505
3,141
2,770
2,770
11,426
2,427
7,901 **
8,196
1,268 **
1,013
–215
22,927
7,085
9,817
5,289
1,654
–918
22,927
8,906
3,323
2,481
3,109
3,080
3,080
11,132
2,469
7,450
7,807 *
1,369
1,074 *
–186
22,932
6,813
9,712
5,530
1,716
–839
22,932
0.5%
–0.4%
0.9%
1.0%
–10.1%
–10.1%
2.6%
–1.7%
6.1%
5.0%
–7.6%
–5.6%
–
0.0%
3.9%
1.1%
–4.4%
–3.6%
–
0.0%
–0.4%
–1.1%
–0.8%
0.7%
–10.4%
–10.4%
0.6%
–1.6%
2.0%
2.0%
-5.6%
–5.6%
–
–1.4%
1.8%
–1.2%
–3.0%
–5.6%
–
–1.4%
2.0%
1.6%
0.6%
3.6%
–7.4%
–7.4%
1.8%
2.1%
2.5%
2.5%
-4.3%
–4.3%
–
0.6%
1.8%
–1.3%
0.4%
10.9%
–
0.6%
Within the Housing Products Sector, the Pipe Division's distribution operations have been transferred, as from
January 1, 2002, to the Building Materials Distribution Division, in order to set up a European organization for
sales of materials in civil engineering markets.
* proforma 2001, after transfer of pipe distribution operations from the Pipe Division to the Building
Materials Distribution Division (sales amounting to EUR 357 million before eliminations, and EUR 295
million after).
** proforma 2002, before transfer of pipe distribution operations from the Pipe Division to the Building
Materials Distribution Division (sales amounting to EUR 295 million before eliminations, and EUR 255
million after).
(1) including inter-division eliminations
Overall, the trends observed in the first half of 2002 continued in the third quarter, with businesses serving
the new construction, renovation and consumer markets enjoying robust demand both in the United States
and in Europe, with the exception of Germany. After a very difficult start to the year, High Performance
Materials sales are slightly down on the third quarter of 2001. Prices have risen compared with last year in
all divisions, with the exception of Insulation and Reinforcements.
The Glass sector achieved the strongest growth in like-for-like sales. All of the divisions contributed to
this performance, led by Containers which benefited from a combination of robust demand and resilient
prices in the third quarter, both in Europe and the United States. The Flat Glass division's operations in
Europe and the Reinforcements division continued to be affected by lower sales prices but volumes
increased at a healthy rate in the third quarter. The Insulation division suffered the effects of the persistently
lackluster construction market in Germany, as well as experiencing pricing pressures.
The High Performance Materials sector recorded a sharp falloff in sales in the first nine months, in both
Industrial Ceramics and Abrasives. The increase in corporate capital spending observed in the second
quarter appears to have been short-lived and fourth quarter sales are expected to be low.
The Housing Products sector's third quarter performance – based on a comparable structure and
constant exchange rates – was consistent with the favorable trend observed in the first half. Building
Materials sales benefited from the satisfactory conditions in the US construction market, while the Building
Materials Distribution division continued to expand through a combination of organic and external growth.
Pipe sales for the first nine months were down on the same period of 2001. However, fourth quarter sales
will be boosted by the first deliveries under the Abu Dhabi contract, helping to offset the relatively weak
demand forecast in Europe and Brazil.
By geographic area, sales remained good in France during the third quarter and the German market
showed signs of recovering. In the United States, Insulation and Building Materials sales were strong,
reflecting robust demand in the construction market. The High Performance Materials sector and the
Reinforcements division reported higher US sales volumes in the third quarter. Most of the Group's
Brazilian operations achieved double-digit sales growth – on a like-for-like basis – in the first nine months
of the year.
Asbestos claims in the United States: the number of new claims filed against Certain Teed in the third
quarter – representing around 5,000 per month – is in line with the trend observed since the start of the
year and represents an annual rate consistent with that for 2001. Assuming that the trend remains
unchanged in the fourth quarter, the Group expects to record an additional charge of EUR 50 million for
asbestos claims at December 31, 2002, raising the total charge for the year to EUR 100 million (before
tax).
Outlook:
Based on the satisfactory level of sales for the first nine months of 2002, the Group is still aiming to meet its
stated objective of matching 2001 net income excluding capital gains.
October 29, 2002
Financial Communications Department
FOR THE FIRST NINE MONTHS OF 2002: UP 0.6%
ON COMPARABLE STRUCTURE AND EXCHANGE RATES BASIS
Saint-Gobain Group sales for the first nine months of 2002 amounted to EUR 22,927 million, on a par with
the EUR 22,932 million reported for the same period of 2001.
Based on a comparable Group structure, sales were down 1.4% in euros and up 0.6% in local
currencies. Resilient prices boosted sales by 0.9%, offsetting the 0.3% negative impact of slightly lower
volumes.
The breakdown of sales by operating sector, division and major geographical area is as follows:
Sales, 9 months
to Sept. 30,
2002
(in EUR millions)
Sales, 9 months
to Sept. 30,
2001
(in EUR millions)
% change
incl. changes
in structure
% change
comparable
structure
in euro
% change
based on
comparable
structure and
exchange rates
(like-for-like)
SECTORS & DIVISIONS
GLASS (1)
Flat Glass
Insulation and Reinforcements
Containers
HIGH-PERFORMANCE MATERIALS (1)
Ceramics, High-Perf. Plastics and Abrasives
HOUSING PRODUCTS (1)
Building Materials
Building Materials Distribution before transfer
Building Materials Distribution after transfer
Pipe before transfer
Pipe after transfer
INTERNAL SALES (INTER-SECTOR)
GROUP
GEOGRAPHIC AREAS
France
Other European countries
North America
Rest of the world
INTERNAL SALES
GROUP
8,946
3,308
2,505
3,141
2,770
2,770
11,426
2,427
7,901 **
8,196
1,268 **
1,013
–215
22,927
7,085
9,817
5,289
1,654
–918
22,927
8,906
3,323
2,481
3,109
3,080
3,080
11,132
2,469
7,450
7,807 *
1,369
1,074 *
–186
22,932
6,813
9,712
5,530
1,716
–839
22,932
0.5%
–0.4%
0.9%
1.0%
–10.1%
–10.1%
2.6%
–1.7%
6.1%
5.0%
–7.6%
–5.6%
–
0.0%
3.9%
1.1%
–4.4%
–3.6%
–
0.0%
–0.4%
–1.1%
–0.8%
0.7%
–10.4%
–10.4%
0.6%
–1.6%
2.0%
2.0%
-5.6%
–5.6%
–
–1.4%
1.8%
–1.2%
–3.0%
–5.6%
–
–1.4%
2.0%
1.6%
0.6%
3.6%
–7.4%
–7.4%
1.8%
2.1%
2.5%
2.5%
-4.3%
–4.3%
–
0.6%
1.8%
–1.3%
0.4%
10.9%
–
0.6%
Within the Housing Products Sector, the Pipe Division's distribution operations have been transferred, as from
January 1, 2002, to the Building Materials Distribution Division, in order to set up a European organization for
sales of materials in civil engineering markets.
* proforma 2001, after transfer of pipe distribution operations from the Pipe Division to the Building
Materials Distribution Division (sales amounting to EUR 357 million before eliminations, and EUR 295
million after).
** proforma 2002, before transfer of pipe distribution operations from the Pipe Division to the Building
Materials Distribution Division (sales amounting to EUR 295 million before eliminations, and EUR 255
million after).
(1) including inter-division eliminations
Overall, the trends observed in the first half of 2002 continued in the third quarter, with businesses serving
the new construction, renovation and consumer markets enjoying robust demand both in the United States
and in Europe, with the exception of Germany. After a very difficult start to the year, High Performance
Materials sales are slightly down on the third quarter of 2001. Prices have risen compared with last year in
all divisions, with the exception of Insulation and Reinforcements.
The Glass sector achieved the strongest growth in like-for-like sales. All of the divisions contributed to
this performance, led by Containers which benefited from a combination of robust demand and resilient
prices in the third quarter, both in Europe and the United States. The Flat Glass division's operations in
Europe and the Reinforcements division continued to be affected by lower sales prices but volumes
increased at a healthy rate in the third quarter. The Insulation division suffered the effects of the persistently
lackluster construction market in Germany, as well as experiencing pricing pressures.
The High Performance Materials sector recorded a sharp falloff in sales in the first nine months, in both
Industrial Ceramics and Abrasives. The increase in corporate capital spending observed in the second
quarter appears to have been short-lived and fourth quarter sales are expected to be low.
The Housing Products sector's third quarter performance – based on a comparable structure and
constant exchange rates – was consistent with the favorable trend observed in the first half. Building
Materials sales benefited from the satisfactory conditions in the US construction market, while the Building
Materials Distribution division continued to expand through a combination of organic and external growth.
Pipe sales for the first nine months were down on the same period of 2001. However, fourth quarter sales
will be boosted by the first deliveries under the Abu Dhabi contract, helping to offset the relatively weak
demand forecast in Europe and Brazil.
By geographic area, sales remained good in France during the third quarter and the German market
showed signs of recovering. In the United States, Insulation and Building Materials sales were strong,
reflecting robust demand in the construction market. The High Performance Materials sector and the
Reinforcements division reported higher US sales volumes in the third quarter. Most of the Group's
Brazilian operations achieved double-digit sales growth – on a like-for-like basis – in the first nine months
of the year.
Asbestos claims in the United States: the number of new claims filed against Certain Teed in the third
quarter – representing around 5,000 per month – is in line with the trend observed since the start of the
year and represents an annual rate consistent with that for 2001. Assuming that the trend remains
unchanged in the fourth quarter, the Group expects to record an additional charge of EUR 50 million for
asbestos claims at December 31, 2002, raising the total charge for the year to EUR 100 million (before
tax).
Outlook:
Based on the satisfactory level of sales for the first nine months of 2002, the Group is still aiming to meet its
stated objective of matching 2001 net income excluding capital gains.
October 29, 2002
Financial Communications Department