2008 Registration Document - Rexel

The trends and objectives presented in this Chapter have been determinedon the basis of data and assumptions considered reasonable by the RexelGroup’s management. These data and assumptions may change as a resultof uncertainties relating to, among other things, the economic, financial,accounting, competitive and regulatory environment. In addition, the occurrenceof certain of the risks described in Chapter 4 of this Document de Référencecould have an impact on the activity, the financial situation, and the results ofthe Rexel Group and its ability to achieve these objectives. The Rexel Groupcan give no assurances and provide no guarantee that the following trends andobjectives will be met.8.1 BUSINESS TRENDSIn 2008, Rexel recorded full year sales of €12,861.6 million,up 20.2% on a reported basis. On a constant basis andsame number of working days, 2008 sales were down 0.8%in the full year. While year-to-end-September sales wereup 1.6%, the global economic downturn led to a markedslump in the fourth quarter (–6.7%) of which the sharp dropin copper-based cables price accounted for approximatelyone third. On a pro forma basis, the 2008 consolidatedsales amounted to €13,735 million.The table below analyzes the quarterly change in salesbetween the years 2007 and 2008, on a constant basis andsame number of working days:2008 growth vs. 2007Q1 Q2 Q3 Q4 YTDRexel Group 3.1% 1.7% 0.4% (6.7)% (0.8)%of which Europe 3.7% 1.4% 0.6% (6.5)% (0.7)%of which North America 1.2% (0.2)% (1.1)% (7.9)% (2.2)%of which Asia-Pacific 8.2% 8.7% 5.7% 0.6% 5.9%In 2009, Rexel anticipates that the macroeconomicenvironment trends may be as follows:− In Europe, a market tightening the intensity of which mayvary from one country to another;− In North America, a lacklustre demand in the industrialand commercial markets in Canada and a recession inthe United States. Rexel does expect a reversal of theresidential market before the end of 2009 or the beginningof 2010 in the United States;− In Asia-Pacific, a moderate growth of the industrial marketand a tightening of the commercial market.REXEL 2008 | PAGE 91