sain t-gobain annu al report 2008 annual report

2006
In 2005, the Group acquired the entire capital stock of Chinabased
Xugang (Xuzhou General Iron and Steel Works) for
€83 million, or €94 million including assumed net debt. As
this acquisition was authorized by the Chinese authorities in
late December 2005, the company – which reported sales of
€126 million in 2006 – was consolidated from January 1, 2006.
In first-half 2006, the Group acquired the entire capital stock
of Ireland-based JP Corry, which was consolidated from June 1,
2006. JP Corry’s estimated full-year sales for 2006 amounted
to €151 million.
The Group also entered into an agreement to sell Saint-Gobain
Calmar to the MeadWestvaco group. Saint-Gobain
Calmar’s assets and liabilities were classified as held for sale
from January 26, 2006, the date the sale process was
announced, through June 30, 2006, the effective date of the
sale. The sub-Group’s consolidated sales for first-half 2006
totaled €182 million.
Impact on the consolidated balance sheet
The impact on the balance sheet at December 31, 2008 of changes in group structure and in consolidation methods was as follows:
First-time Other Divested Total
consolidation acquired companies
(in € millions) of Maxit companies
144
Impact on assets
Non-current assets 2,023 755 (39) 2,739
Inventories 154 151 (22) 283
Trade accounts receivable 200 107 (46) 261
Other current assets excluding cash and cash equivalents 10 75 1 86
Impact on equity and liabilities
2,387 1,088 (106) 3,369
Shareholders’ equity and minority interests 1 7 (10) (2)
Provisions for pensions and other employee benefits 37 11 (1) 47
Non-current liabilities 67 25 (5) 87
Trade accounts payable 73 127 (25) 175
Other payables and accrued expenses 122 68 (15) 175
300 238 (56) 482
Enterprise value of consolidated
companies acquired/divested (a) 2,087 850 (50) 2,887
Impact on consolidated net debt*
Impact on cash and cash equivalents 17 85 (8) 94
Impact on net debt excluding cash and cash equivalents (b) 576 135 (8) 703
559 50 0 609
Acquisitions/disposals of shares in consolidated companies net
of cash acquired/divested (a) - (b) 1,511 715 (42) 2,184
* Corresponding to the debt, short-term credit facilities and cash and cash equivalents of acquired/divested companies.
Assets and liabilities held for sale
The US fiber reinforcements business was discontinued during
2008 and its assets and liabilities were therefore no longer
reported as held for sale in the consolidated balance sheet at
December 31, 2008.
The assets and liabilities of the Reinforcements and Composites
business were classified as held for sale in the consolidated
balance sheet at June 30, 2007. The sale of the business on
November 1, 2007 had no further impact on the income statement
in light of the one-off provision booked at June 30, 2007.
Only the US fiber reinforcements business continued to be
classified as held for sale in the consolidated balance sheet at
December 31, 2007.
Saint-Gobain – Financial Report 2008