Saint-Gobain: Sales for the first nine months of 2019

2019-11-01

Nov. 1, 2019 - Consolidated sales for the first nine months of 2019 were €32,471 million compared to €31,130 million for the first nine months of 2018. 

The currency impact was positive at 0.7% over the nine-month period and 1.0% in the third quarter, resulting mainly from the appreciation of the US dollar against the euro, despite the depreciation of the Nordic krona. 

The Group structure impact added 0.2% to growth over the nine-month period and 0.3% in the third quarter, reflecting the integration of acquisitions in new niche technologies and services (Kaimann in technical insulation), in Asia and emerging countries (Join Leader in adhesives), and to consolidate our strong positions (Hunter Douglas in specialty ceilings). The acceleration in our divestment program is only partially reflected in the nine-month period given the deconsolidation dates, in particular for the Pipe business in Xuzhou, China, the silicon carbide business, glazing installation operations in the UK and glass processing in Sweden and Norway. After the recent finalization of new divestments, the Group is deconsolidating its Distribution business in Germany, Optimera in Denmark and K par K in France for the fourth quarter of 2019. 

Like-for-like sales rose 3.4% over the nine-month period and 3.1% in the third quarter. Despite a less supportive market overall, volumes were up 1.4% in the nine-month period, including a rise of 1.7% in the third quarter with a positive 1.5% calendar impact. Prices contributed 2.0% to growth over the nine-month period and 1.4% in the third quarter in a less inflationary environment for raw material and energy costs and with a higher prior-year comparison basis. 

Segment performance (like-for-like sales)

High Performance Solutions (HPS) sales rose 0.9% over the nine-month period and 0.8% in the third quarter in hesitant industrial markets.

Northern Europe advanced 3.0% over the nine-month period and 1.9% in the third quarter with a favorable calendar effect. Distribution progressed, along with the industrial businesses and especially Gypsum, while Building Glass stabilized.

Southern Europe - Middle East & Africa increased 4.2% over the nine-month period and 3.7% in the third quarter with a favorable calendar impact. Distribution continued to drive growth; industrial businesses progressed, particularly Insulation, Gypsum and Mortars, along with Building Glass to a lesser extent. Pipe continued its successful efforts to improve competitiveness in a difficult export market. 

The Americas posted 3.8% organic growth over the nine-month period, including 6.1% in the third quarter. 

Asia-Pacific delivered 5.8% organic growth over the nine-month period and 4.7% in the third quarter, led by Gypsum and Mortars in particular. Glass declined owing to lower plant utilization rates given the contraction in the automotive market.