· Organic growth at 4.9% (including 8.0% in the second quarter), with volumes up 2.4%
· Prices up 2.5%, accelerating in line with the rise in raw material and energy costs
· 4.4% negative currency impact, mainly due to the depreciation of the US dollar and of certain Asian and emerging country currencies; positive 1.4% structure impact
· Operating income at €1,469 million (up 0.3% as reported), an increase of 1.7% like-for-like
· Recurring net income up 6.8% and net attributable income up 61.7% notably including a positive impact of €781 million relating to the Sika transaction
· 13 acquisitions for a total of €356 million (excluding Sika)
· 8.8 million shares bought back in first-half 2018
· Objectives for full-year 2018 confirmed
· Acceleration of strategy: divestments representing at least €3 billion in sales by the end of 2019, continued high level of value-creating acquisitions, review of the Group’s organizational structure
Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain, commented:
“The second quarter marks a return to supportive trends in all our main markets. After a disappointing first quarter, affected by harsh winter weather in Europe which weighed on results, the second quarter was far more encouraging in terms of volumes and prices. The Group succeeded in further raising sales prices amid continued raw material and energy cost inflation. Despite a combination of temporary one-off factors, our first-half results progressed once again.
Saint-Gobain is therefore confirming its objectives for full-year 2018 and for the second half expects the like-for-like increase in operating income to be clearly above the level achieved in the first half.
After having agreed a transaction with Sika on excellent financial terms, the Group will accelerate the implementation of its strategy: the roll-out of a divestment program representing at least €3 billion in sales by the end of 2019, the continuation of its policy of value-creating acquisitions, and the launch of a review of the Group’s organizational structure in order to give greater priority to the regional dimension of its businesses with the aim of enhancing its agility to drive growth and reinforce its competitiveness.”
Recurring net income excl. capital gains and losses on disposals, asset write-downs, material non-recurring provisions and Sika income.
