· Positive price trend of 2.1%
· Volumes down 0.5% impacted by a c.2% negative calendar impact and unfavorable weather conditions
· Strong 4.7% negative currency impact mainly due to the depreciation of the US dollar and certain Asian and emerging country currencies
· Positive 1.3% structur impact reflecting the rise in the Group’s acquisitions activity
Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain, commented:
“In the first quarter, the Group demonstrated its ability to raise sales prices amid ongoing raw material and energy cost inflation. Weather conditions and fewer working days distort the interpretation of our performance at the start of the year. Underlying trends nevertheless confirm the improvement of our markets in most of our countries in Europe, particularly France, as well as good momentum in North America and emerging countries. As announced, the Group has continued to step up its capital expenditure since the beginning of the year, along with its active strategy of small and mid-sized acquisitions (nine acquisitions to date for around €300 million). For 2018 as a whole, we confirm our objective of a further like-for-like increase in operating income.”
On a like-for-like basis, sales grew by 1.6%. Prices continued to rise (up 2.1%) against a higher comparison basis. Volumes declined 0.5%, hit by a negative calendar impact of around 2% and by harsh weather conditions, especially in Europe and in March. North America, Asia and emerging countries enjoyed further good growth momentum.
On a reported basis, sales totaled €9,755 million, with a strong negative 4.7% currency impact notably due to the depreciation of the US dollar, Brazilian real, Nordic krona and other Asian and emerging country currencies against the euro.
The Group structure impact added 1.3% to sales growth and mainly reflects the consolidation of companies in Asia and emerging countries (KIMMCO, Tumelero, Megaflex, Isoroc Poland), in new niche technologies and services (TekBond, Maris, Scotframe), and to consolidate our strong positions (Glava, Biolink, Kirson, Wattex, SimTek, bolt-on acquisitions in Building Distribution).
