sain t-gobain annu al report 2008 annual report

Responding to recession
by demonstrating operational excellence
By building its strategy on the habitat ans construction markets,
Saint-Gobain is being guided by a long-term vision of what the
construction industry will look like in the future. This deep
understanding of the market is part of our corporate culture,
reflecting nearly 350 years’ experience that has made us a
leader in every market. One of the critical factors underpinning
our enduring success has been and will continue to be the
ability to swiftly adapt to changing economic environments,
supported by strong values that serve as invaluable guideposts
in uncertain times.
These are the principles we are applying today, to foresee and
quickly respond to new economic conditions, and thus to
emerge from the crisis in even better shape.
In addition to the savings expected from the cost-cutting
plans launched last year, we are actively working to instill a
real culture of operational excellence across the organization.
Ten-Year Consolidated Financial Highlights
(1)
(in € millions) 2008 2007 2006 2005
2004
(IFRS)
2004 2003 2002 2001 2000 1999
Net sales (2) 43,800 43,421 41,596 35,110 32,172 32,025 29,590 30,274 30,390 28,815 22,952
Operating income 3,649 4,108 3,714 2,860 2,743 2,632 2,442 2,582 2,681 2,693 2,314
Net income 1,437 1,543 1,682 1,294 1,275 1,120 1,065 1,074 1,174 1,642 1,389
Recurring net income (3) 1,914 2,114 1,702 1,284 1,289 1,122 1,020 1,051 1,057 1,026 883
Recurring earnings
per share (4) (in €)
Net income attributable to equity
holders of the parent
5.00 5.65 4.62 3.72 3.78 3.29 2.93
12.32
3.08 (*) 12.40 12.04 10.12
1,378 1,487 1,637 1,264 1,239 1,083 1,039 1,040 1,134 1,517 1,226
Earnings per share (4) (en €) 3.60 3.97 4.44 3.66 3.63 3.18 2.99
12.20
3.05 (*) 13.30 17.80 14.05
Total investments (5) 4,507 3,238 2,775 8,747 2,197 2,194 1,911 2,061 2,246 4,694 3,479
Equity (including minority interests) 14,530 15,267 14,487 12,318 10,863 11,806 11,310 11,542 12,348 11,724 11,151
Net debt 11,679 9,928 11,599 12,850 6,218 5,566 5,657 7,012 7,792 8,217 6,306
Non-current assets 28,026 26,041 26,274 26,763 17,183 17,515 17,237 18,840 19,678 19,530 16,909
Working capital 2,392 2,540 (6) 2,451 2,324 3,181 4,943 5,247 3,951 3,075 3,222 2,612
STRATEGY AND BUSINESSES
7
Employees (at December 31) 209,175 205,730 206,940 199,630 181,228 181,228 172,811 172,357 173,329 171,125 164,698
(1)
Including BPB from December 1, 2005.
(2)
Including other revenue of €318 million in 2008, €295 million in 2007 and €273 million in 2006.
(3)
Capital expenditure and financial investments, excluding purchases of treasury stock.
(4)
Excluding disposal gains and losses, asset impairment charges and material non-recurring provision charges
(including for fines imposed on the Flat Glass Division by the European Commission)
(5)
Earnings per share are calculated based on the number of shares outstanding at December 31, 2008.
(6)
Working capital adjusted for the €560 million provision set aside in 2007 for fines imposed on the Flat Glass Division.
(*)
Adjusted for the June 27, 2002 four-for-one stock-split.
Saint-Gobain - 2008 Annual Report