Sales Up 4.2% for Saint-Gobain in First Nine Months of 2017
Consolidated sales for the first nine months of 2017 came in at €30.6 billion (approximately $35.6 billion), compared to €29.3 billion (~ $34.1 billion) for the first nine months of 2016.
Saint-Gobain recently announced its financial results for the first nine months of 2017. Consolidated sales for the first nine months of 2017 came in at €30.6 billion (approximately $35.6 billion), compared to €29.3 billion (~ $34.1 billion) for the first nine months of 2016. The 0.8% positive group structure impact essentially reflects the consolidation of acquisitions made in Asia and emerging countries (Emix, Solcrom, Tumelero), in new niche technologies and services (H-Old, Isonat, France Pare-Brise), and to further strengthen the group’s positions in Building Distribution (particularly in Nordic countries). Currency movements had a 0.7% negative impact over the first nine months of the year, with a significant 2.2% negative impact in the third quarter primarily due to the depreciation of the U.S. dollar, pound sterling, and certain Asian and emerging country currencies against the euro.
On a like-for-like basis, sales were up 4.2% over nine months and 5.6% in the third quarter, continuing the first half’s upbeat trends, excluding the impact of the cyber-attack. Following this event, and as announced at the end of July, the group recorded both additional losses in some businesses during the quarter and a claw-back of June sales. Volumes rose 3.6% over the quarter (up 2.4% over nine months), continuing to increase in all regions and in all business sectors. Prices had a positive 2% impact over the quarter (1.8% over nine months), amid a continuing rise in energy and raw material costs.
“The third quarter confirmed the upbeat trends seen in the first half, excluding the impact of the cyber-attack,” said Pierre-André de Chalendar, chairman and CEO. “All business sectors and regions advanced, including France. We continued to see a good price effect against a tougher basis for comparison, but not yet sufficient in all of the group’s businesses given the more inflationary raw material and energy cost environment. The group continued to focus on its strategic priorities, signing 23 acquisitions since the beginning of the year, including the recently finalized Glava deal. Saint-Gobain confirms its objective for the full year 2017 and expects the like-for-like increase in operating income for the second half to be above the level achieved in the first half, despite ongoing inflationary pressure on costs.”
Sales in the Innovative Materials business sector climbed 4.8% over the nine-month period, including 6.1% in the third quarter. Flat Glass delivered further good organic growth in the quarter, at 4.6% (5.3% for the nine-month period). The automotive business continued to report good volume growth in all regions, despite a less favorable mix effect compared to the first half. Sales linked to construction markets remained at good levels across Western Europe, with float glass price trends stabilizing and higher prices for transformed glass; Asia and emerging countries again performed well although the company expects a negative impact from the earthquake in Mexico, which affected its facilities.
High-Performance Materials (HPM) sector sales rose 8.7% over the quarter (4.5% over the nine-month period). The increase was driven by all regions and businesses, particularly Ceramics, which was boosted by strong sales of refractories during the summer.
Saint-Gobain expects the following trends for the fourth quarter:
- Gradual improvement of construction markets in France
- Continued upbeat trends overall in other Western European countries, despite less visibility in
the UK and with Germany still hesitant
- Positive market conditions in North American construction
- Good organic growth in Asia and emerging countries
- Ongoing inflationary pressure on costs
Saint-Gobain confirms its full-year 2017 objective of a like-for-like increase in operating income and expects the like-for-like increase for the second half of 2017 to be above the level achieved in the first half, despite ongoing inflationary pressure on costs.
For additional information, visit www.saint-gobain.com.