Final results for 2006: confirmation of he figures published at the end of january 2007
Strong growth, outperforming targets
Sales: up 18.5% to €41,596 million; up 18.2% at constant exchange rates* and up 6.7% like-for-like
Operating income: up 29.9% to €3,714 million;
up 29.8% at constant exchange rates*
Net income (excluding capital gains and losses on sales of non-current assets): up 32.6% to €1,702 million
* average exchange rates for 2005
2007 targets: another year of growth
Robust increase in operating income, at constant exchange rates**
Double-digit growth in net income (excluding capital gains and losses on sales of non-current assets)
** average exchange rates for 2006
2006 DIVIDEND***: €1.7 per share, up 25% on 2005
*** Recommended dividend payable in respect of 2006 to be submitted by the Board of Directors to the Annual General Meeting on June 7, 2007 for approval.
The Group’s 2006 consolidated financial statements were adopted by Saint-Gobain’s Board of Directors at their meeting of Thursday March 22, 2007.
2006 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:
2005
In € millions 2006
In € millions %
change
(1) (2) (2)/(1)
Net sales (a) 35,110 (a) 41,596 (a) +18.5%
Operating income 2,860 3,714 +29.9%
Non-operating costs (288) (367) +27.4%
Capital gains and losses and exceptional asset write-downs
(21)
(27)
-28.6%
Dividend income 3 2 -50.0%
Business income 2,554 3,322 +30.1%
Net financial expense (569) (748) +31.5%
Income tax (701) (899) +28.2%
Share in net income of equity investees 10 7 -30.0%
Income before minority interests 1,294 1,682 +30.0%
Minority interests (30) (45) +50.0%
Net attributable income 1,264 1,637 +29.5%
Earnings per share based on the number of shares at December 31 (in €)
3.66
4.44
+21.3%
Earnings per share excluding capital gains 1,284 1,702 +32.6%
Earnings per share excluding capital gains based on the number of shares at December 31 (in €)
3.72
4.62
+24.2%
Cash flow from operations 2,735 3,347 +22.4%
Cash flow from operations excluding capital gains tax
2,730
3,374
+23.6%
Depreciation and amortization 1,420 1,717 (b) +20.9%
Capital expenditure 1,756 2,191 +24.8%
Investments in securities (c) 6,991 584 n.m.
Net debt 12,850 11,599 -9.7%
(a) including ancillary revenue of €273 million in 2006, versus €250 million in 2005
(b) including additional amortization of €17 million in 2006 resulting from the allocation of BPB's acquisition cost to certain items
of property, plant and equipment (gypsum quarries and industrial plants) and intangible assets such as patents
(c) excluding buy-backs and/or sales of own shares
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 relating to the Group’s estimated 2006 results – published at the end of January 2007 – 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 parent company.
At the General Meeting of the Company’s shareholders called for June 7, 2007, the Board will recommend a dividend payout of €617 million, representing 36.1% of net income excluding capital gains on sales of non-current assets and exceptional asset write-downs, and 37.6% of net income.
The dividend per share would therefore be €1.7, an increase of 25% on 2005. Based on the closing share price on December 29, 2006 (€63.65), this dividend would represent a net yield of 2.7%. The dividend will be paid entirely in cash as from June 21, 2007.
At the General Meeting of June 7, 2007, shareholders will be asked to approve:
- the appointment and renewal of the term of office as director of Bernard Cusenier, representing current employee and former employee shareholders of Saint-Gobain (replacing Pierre Kerhuel);
- the renewal of the terms of office as directors of Gérard Mestrallet, Chairman and CEO of Suez and Denis Ranque, Chairman and CEO of Thales;
- and the appointment as directors of Robert Chevrier, a Canadian national company administrator (replacing Paul David, who has reached the age limit applicable to directors) and of Japanese national Yuko Harayama, a member of the Japanese government’s Committee for Science and Technology and executive advisor to the Chairman of the University of Tohoku in Japan (replacing Sehoon Lee, who has decided not to seek re-election).
The Board of Directors wishes to thank Pierre Kerhuel, Paul David and Sehoon Lee for their contribution to its work.
2007 outlook and objectives
The Group confirms its objectives as published at the end of January 2007:
- robust growth in operating income, at constant exchange rates (average exchange rates for 2006);
- double-digit growth in net income, excluding capital gains and losses on sales of non-current assets.
These objectives are based on the assumption that Saint-Gobain Desjonquères and the Reinforcements & Composites business will be deconsolidated in first-half 2007, but do not reflect any other major scope adjustments that may occur in 2007.
Forthcoming results announcements
- Sales for the first quarter of 2007: April 26, 2007, after close of trading on the Paris Bourse.
Sales: up 18.5% to €41,596 million; up 18.2% at constant exchange rates* and up 6.7% like-for-like
Operating income: up 29.9% to €3,714 million;
up 29.8% at constant exchange rates*
Net income (excluding capital gains and losses on sales of non-current assets): up 32.6% to €1,702 million
* average exchange rates for 2005
2007 targets: another year of growth
Robust increase in operating income, at constant exchange rates**
Double-digit growth in net income (excluding capital gains and losses on sales of non-current assets)
** average exchange rates for 2006
2006 DIVIDEND***: €1.7 per share, up 25% on 2005
*** Recommended dividend payable in respect of 2006 to be submitted by the Board of Directors to the Annual General Meeting on June 7, 2007 for approval.
The Group’s 2006 consolidated financial statements were adopted by Saint-Gobain’s Board of Directors at their meeting of Thursday March 22, 2007.
2006 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:
2005
In € millions 2006
In € millions %
change
(1) (2) (2)/(1)
Net sales (a) 35,110 (a) 41,596 (a) +18.5%
Operating income 2,860 3,714 +29.9%
Non-operating costs (288) (367) +27.4%
Capital gains and losses and exceptional asset write-downs
(21)
(27)
-28.6%
Dividend income 3 2 -50.0%
Business income 2,554 3,322 +30.1%
Net financial expense (569) (748) +31.5%
Income tax (701) (899) +28.2%
Share in net income of equity investees 10 7 -30.0%
Income before minority interests 1,294 1,682 +30.0%
Minority interests (30) (45) +50.0%
Net attributable income 1,264 1,637 +29.5%
Earnings per share based on the number of shares at December 31 (in €)
3.66
4.44
+21.3%
Earnings per share excluding capital gains 1,284 1,702 +32.6%
Earnings per share excluding capital gains based on the number of shares at December 31 (in €)
3.72
4.62
+24.2%
Cash flow from operations 2,735 3,347 +22.4%
Cash flow from operations excluding capital gains tax
2,730
3,374
+23.6%
Depreciation and amortization 1,420 1,717 (b) +20.9%
Capital expenditure 1,756 2,191 +24.8%
Investments in securities (c) 6,991 584 n.m.
Net debt 12,850 11,599 -9.7%
(a) including ancillary revenue of €273 million in 2006, versus €250 million in 2005
(b) including additional amortization of €17 million in 2006 resulting from the allocation of BPB's acquisition cost to certain items
of property, plant and equipment (gypsum quarries and industrial plants) and intangible assets such as patents
(c) excluding buy-backs and/or sales of own shares
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 relating to the Group’s estimated 2006 results – published at the end of January 2007 – 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 parent company.
At the General Meeting of the Company’s shareholders called for June 7, 2007, the Board will recommend a dividend payout of €617 million, representing 36.1% of net income excluding capital gains on sales of non-current assets and exceptional asset write-downs, and 37.6% of net income.
The dividend per share would therefore be €1.7, an increase of 25% on 2005. Based on the closing share price on December 29, 2006 (€63.65), this dividend would represent a net yield of 2.7%. The dividend will be paid entirely in cash as from June 21, 2007.
At the General Meeting of June 7, 2007, shareholders will be asked to approve:
- the appointment and renewal of the term of office as director of Bernard Cusenier, representing current employee and former employee shareholders of Saint-Gobain (replacing Pierre Kerhuel);
- the renewal of the terms of office as directors of Gérard Mestrallet, Chairman and CEO of Suez and Denis Ranque, Chairman and CEO of Thales;
- and the appointment as directors of Robert Chevrier, a Canadian national company administrator (replacing Paul David, who has reached the age limit applicable to directors) and of Japanese national Yuko Harayama, a member of the Japanese government’s Committee for Science and Technology and executive advisor to the Chairman of the University of Tohoku in Japan (replacing Sehoon Lee, who has decided not to seek re-election).
The Board of Directors wishes to thank Pierre Kerhuel, Paul David and Sehoon Lee for their contribution to its work.
2007 outlook and objectives
The Group confirms its objectives as published at the end of January 2007:
- robust growth in operating income, at constant exchange rates (average exchange rates for 2006);
- double-digit growth in net income, excluding capital gains and losses on sales of non-current assets.
These objectives are based on the assumption that Saint-Gobain Desjonquères and the Reinforcements & Composites business will be deconsolidated in first-half 2007, but do not reflect any other major scope adjustments that may occur in 2007.
Forthcoming results announcements
- Sales for the first quarter of 2007: April 26, 2007, after close of trading on the Paris Bourse.