Saint-Gobain Confirms its Net Income (without Capital Gains) of EUR 560 Million (up 2.9%) for the First Half of 2001 (with link)


PARIS, Sept. 20, 2001 (PRIMEZONE) -- The Board of Directors of Saint-Gobain (Paris Stock Exchange:SGOB) met on Sept. 20, 2001, to review the final consolidated financial statements of the Group for the six months ended June 30, 2001. The main consolidated results, which are in line with the estimates released on July 26, are as follows:

The Group's consolidated financial statements for first-half 2000 included the results of Essilor, which was fully consolidated over the entire period. In first-half 2001, however, Essilor was no longer consolidated, as the Group had sold its entire stake in this company in November 2000. For purposes of comparability, the Group's consolidated financial statements for first-half 2000 are also presented with Essilor accounted for by the equity method.


                      First-half   First-half   First-half   Change
                         2001         2000         2000         %
                        in EUR       in EUR      pro forma
                       millions     millions      Essilor
                          (1)          (2)       by equity
                                                  method in
                                                EUR millions
                                                   (1)/(2)
 
 
 Net sales               15,286      13,782      12,804        19.4%
 Operating income         1,376       1,401       1,271         8.3%
 Dividend income             22          22          22           0%
 Interest and other
  financial charges,
  net                      (311)       (272)       (254)       22.4%
 Non-operating
  costs                     (43)        (63)        (62)      -30.6%
 Income before
  profit on sales
  of non-current
  assets and taxes        1,044       1,088         977         6.9%
 Profit on sales
  of non-current
  assets, net               134         414         414       -67.6%
 Provision for
  income tax               (407)       (483)       (450)       -9.6%
 Amortization of
  goodwill                  (93)        (97)        (86)        8.1%
 Share in net
  results of
  equity investees            9          31          50       -82.0%
 Net income before
  minority interests        687         953         905       -24.1%
 Minority interests         (24)        (80)        (32)        -25%
 Net income                 663         873         873*      -24.1%
 Earnings per
  share (in Euros)         7.70       10.41       10.41         -26%
 Net income
  excluding capital
  gains                     560         544         544*        2.9%
 Earnings per
  share excluding
  capital gains (in Euros)  6.5        6.49        6.49         0.2%
 Cash flow from
  operations              1,390       1,339       1,226**      13.4%
 Cash flow excluding
  capital gains           1,437       1,428       1,315**       9.3%
 Depreciation and
  amortization
  (incl. goodwill)          839         813                  756 11
 Capital expenditure        557         779         695       -19.9%
 Investments in
  securities                537       2,242       2,170       -75.3%
 Net indebtedness         8,376       8,421       8,421        -0.5%
 Gearing ratio               67%         75%       75%n      -8 pts
 
  * of which Essilor: EUR 20 million
  ** of which Essilor: EUR 11 million

The Board of Directors also reviewed the financial statements of Compagnie de Saint-Gobain, the parent company of the Group, which operates as a holding company. These financial statements show net income of EUR 1,027 million for the first six months of 2001, compared with EUR 551 million for the same period of 2000.

Outlook: Group sales in July and August were in line with the trends expected in the second half to reach the objective set for the full year, of 10% growth in net income excluding capital gains. In particular, the three divisions of the Housing Products Sector have recorded significant improvements in their performance.

Nevertheless, the short- and medium-term consequences of the tragic events of Sept. 11, 2001 are for the time being impossible to predict. To date, the first available data show no material impact on the Group's activity levels.

Note 1: See Appendix 1: Results by business sector, division and geographic area.

Note 2: See Appendix 2: Consolidated balance sheet at June 30, 2001.

To view Appendix 1 and 2, go to http://www.prline.fr/pdf/Pressrelease20090.pdf


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CONTACT :  Saint-Gobain, Paris
           Investor Relations Department
           Florence Triou-Teixeira
           +33 1 47 62 45 19
           florence.triou@saint-gobain.com

           Lounis Bekkat
           +33 1 47 62 32 36
           lounis.bekkat@saint-gobain.com
           Fax : +33 1 47 62 50 62