PARIS, Jan. 31, 2002 (PRIMEZONE) -- Essilor (Paris Stock Exchange:EF) ,the world leader in ophthalmic optical products, today announced its provisional financial results for the year ended December 31, 2001:
2001 2000 %
E millions E millions change
Sales 2,069 1,978 4.6
Operating income 309 274 12.7
Operating margin 14.9% 13.9% ------
Non-operating loss (29) (9) ------
Pretax income after
non-operating items 231 223 3.6
Net income after minority
Interests 142 135 4.9
Earnings per share (in E) 1.43 1.29 10.4
The 2001 financial results reflect Essilor's solid position, as well as excellent demand in the optics market that fueled strong sales throughout the year. They once again validate the Group's strategy of developing high-technology lenses and diversifying its geographic base. This strategy has helped Essilor gain market share everywhere it operates.
During the year, Essilor continued to refocus on its core lens manufacturing and surfacing business, a process that led to the disposal of the contact lens business and the Group's minority stake in frame-manufacturer Logo. Lastly, 2001 saw the start-up of the Nikon Essilor joint venture, whose earnings enjoyed faster than expected growth.
Supported by a very good second half, Essilor's strategy also had a positive impact on operating margin, which widened by a full point to a record 14.9%. The increase was driven by an improved product mix and by productivity gains across the global business base, which will continue in 2002.
The year also demonstrated Essilor's ability to quickly pay down debt. With the debt-to-equity ratio now back at 26%, the Group has restored its financing capacity and is confident in its prospects for the future.
Sales: Sales rose 4.6% to E2,069 million, or 5.4% on a comparable basis. The 0.8% difference stems primarily from the disposal of the contact lens business in January 2001. The currency effect was negligible. Sales grew faster than the world optics market as a whole, reflecting Essilor's good position in the most active segments. This was illustrated by the introduction of several new products during the year, including 1.67 and 1.74 ultra-high-index lens.
Operating income: Operating income increased by 12.7% to E309 million, lifting the full-year operating margin to a record 14.9%. This strong growth is primarily attributable to:
-- Productivity gains at all levels and growing sales of higher
value-added products.
-- The improved business performance of US operations following the
rationalization and reorganization program initiated in 2001.
Non-operating loss: The non-operating loss mainly includes:
-- Capital losses on the sale of Essilor's 44% interest in Logo (E11
million) and the disposal of the contact lens subsidiaries (E3
million).
-- Costs related to the reorganization plans that have helped improve
profitability in the US and Europe (E6 million).
-- Start-up expenses for the Vision Web B2B platform in the US, which
is open to the entire eye-care industry (E8 million).
Pretax income after non-operating items: Pretax income after non-operating items rose 3.6% to E231 million. The figure reflects this year's larger non-operating loss, as well as higher interest expense related to the level of debt at the beginning of the year.
Debt: At December 31, 2000, the debt-to-equity ratio rose to 44% following the acquisition from Compagnie de Saint-Gobain of Essilor shares representing 7% of issued capital. The Group's strong cash flow and selective approach to capital expenditure enabled it to reduce this ratio to 26% by December 31, 2001.
Net income and earnings per share: Net income after minority interests increased by 4.9% to E142 million. However, earnings per share rose 10.4%, to E1.43, due to the cancellation of shares representing 6% of the issued capital during the year.
Audited results will be released on March 14, 2002.
Essilor International is the world leader in ophthalmic optical products, offering a wide range of lenses under the flagship Varilux(r), Crizal(r), Airwear(r) and Essilor brands to correct myopia, hyperopia, presbyopia and astigmatism. Essilor operates worldwide through 17 production centers, more than 150 lens finishing laboratories and local distribution networks. The Essilor share trades on the Euronext Paris market under Euroclear code 12166 (Reuters: ESSI.PA; Bloomberg: EF FP).