Saint-Gobain has reported net income up 16% to FFr 4.2 billion (US$ 830.1 million) for 1995. The improved result came despite a 6% reduction in turnover, to FFr 70.3 billion, following its sale of the…
Saint-Gobain has reported net income up 16% to FFr 4.2 billion (US$ 830.1 million) for 1995. The improved result came despite a 6% reduction in turnover, to FFr 70.3 billion, following its sale of the Papier-Bois business at the start of November 1994. The French group stressed that the increase in underlying profits would have been 49% above 1994 net income of FFr 2.7 billion, before the effect of capital gains from exceptional sales of businesses. Operating profits for the year rose 7% to FFr 7.8 billion, ahead of a sharp reduction in financing charges to FFr 610 million from FFr 1.3 billion, and other non-operating costs of FFr 560 million, against FFr 1.1 billion. Turnover decreased to FFr 70,270 million against FFr 74,494 million with the net falling slightly, to FFr 4,700 million, against FFr 4,750 million. Pre-tax, pre-exceptional was FFr 7,060 million against FFr 5,299, while cashflow rose by around 12% to FFr 9,210 million and industrial investments increased to FFr 5,700 million from FFr 3,778 million. The group said its total net debt remained “low“ at FFr 3.8 billion, or 8% of shareholders“ funds, compared with FFr 2.5 billion in the previous 12 months. However, it said FFr 9.2 billion – or 13.1% of turnover – came from self-financing, meaning that it was able to cover practically all of its industrial and financial investments internally. Sales in France accounted for 19% of the total, with a further 10% exported from plants in France to other countries, 40% from production in other European countries, and 31% in countries outside Europe. It said Latin America had shown a drop in profitability, but France and other European countries were positive. Saint-Gobain has also announced that it is to buy 51% of a Chinese car windscreen manufacturer which supplies big European car makers such as Volkswagen, Citroen and Peugeot and that it was also taking a minority stake in its parent company. The price was not revealed but the acquisition constituted a “significant investment” in the com-pany, Fujian Wanda Automobile Glass Industries, which made more than one million windscreens a year, a Saint-Gobain spokeswoman said. The Chinese firm, located in the Fujian province, will build a new factory and be able to export as well as cater to the needs of all car firms in China, a Saint-Gobain statement said. Philippe Crouzet, Saint-Gobain managing director for Spain and Portugal since October 1992, has been appointed managing director of Vitrage Batiment Europe. Four other managing directors have also been appointed. They include Marc Van Ossel, who has been named managing director for Germany, Austria, the Czech Republic and Hungary. Mr. Van Ossel replaces Hans Gehle who will be retiring. Reinier-Paul Neeteson takes over as managing director for Belgium, the Netherlands, Luxembourg, the UK and Ireland. Lars Granse has been appointed managing director for Scandinavia and the Baltic States. Claude Imauven takes over as managing director for Spain and Portugal.