Earnings Release • Feb 12, 2009
Earnings Release
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Paris, February 12, 2009
The Board of Directors of Imerys, meeting under the chairmanship of Aimery Langlois-Meurinne, examined the definitive financial statements for 2008, as presented by Chief Executive Officer Gérard Buffière. The financial statements will be submitted for approval at the Annual General Meeting on April 29, 2009.
| (€ millions) | 2008 | 2007 | % current change |
|---|---|---|---|
| CONSOLIDATED RESULTS | |||
| Sales | 3,449.2 | 3,401.9 | + 1.4% |
| Current operating income(1) | 403.4 | 478.3 | - 15.7% |
| Net current income, Group's share(2) | 267.1 | 316.7 | - 15.7% |
| Net income, Group's share | 161.3 | 284.2 | - 43.2% |
| FINANCING | |||
| Current operating cash flow(3) | 458.4 | 522.6 | - 12.3% |
| Booked capital expenditure | 238.1 | 367.0 | - 35.1% |
| Shareholders' equity | 1,546.3 | 1,663.6 | - 7.0% |
| Net financial debt | 1,566.1 | 1,343.0 | + 16.6% |
| DATA PER SHARE (weighted average number) | 62,801,382 | 63,330,652 | - 0.8% |
| Net income from current operations, Group's share(2) | €4.25 | €5.00 | - 15.0% |
| Proposed dividend | €1.00 | €1.90 | - 47.4% |
(1) Operating income before other operating revenue and expenses.
(2) Group's share of net income, before other operating revenue and expenses, net.
(3) EBITDA minus tax on current operating income.
In 2008, Imerys' environment was marked by a gradual downturn in American and European economic conditions. This slump sharply worsened in the fall, resulting in an unprecedented drop in sales volumes in the last few months of the year. New housing-related markets (building materials, ceramics, performance minerals) were particularly affected in both the United States and Europe. In the paper sector, demand decreased and the industrial base underwent further restructuring in developed countries, while trends remained positive in Asia. Global markets related to industrial equipment (refractories, abrasives, graphite, etc.) benefited from firm growth during the first nine months of the year but were severely hit in the 4th quarter by production stoppages, particularly in the steel and automotive industries.
As regards variable costs (energy, raw materials, freight, etc.), while some energy prices eased off towards the end of the year, other cost factors remained high, after the historical peaks reached in mid-year. As a result, inflation in those factors for 2008 as a whole was unprecedented. Finally, the dollar rate against the euro was lower than in 2007, despite an increase at the end of the year.
In 2008, in this difficult economic context, the Group's action plans were focused along the following lines:
Since the summer, priority has been given to:
The Group's sales grew in 2008 (+ 1.4% vs. 2007), benefiting from the consolidation of the acquisitions made since 2007. Current operating income, however, showed a - 15.7% decrease, mainly reflecting the impact of the volume decreases recorded towards the end of the year in most markets. Net current income was also down - 15.7%.
Taking difficult economic conditions into account, at the Annual General Meeting of April 29, 2009, the Board of Directors will propose payment of a dividend reduced to €1.00 per share, compared with €1.90 for financial 2007, i.e. a total of approximately €62.8 million, which represents 23.5% of the Group's share of net current income. This dividend will be paid out from July 7, 2009.
Gérard Buffière commented, "2008 will go down as an extremely disruptive year: the first three quarters were marked by record inflation in external costs; then, from the end of October, a dramatic fall in sales volumes affected the great majority of industrial sectors worldwide; finally, exchange rates were extremely volatile in 2008.
Despite that upheaval, Imerys proves that its business model is profitable, its activities generate cash flow and the Group is able to adapt swiftly to changing conditions.
In that crisis context, our priorities are:
The growth in current free operating cash flow, at €253 million in 2008 (vs. €174 million in 2007), reflects the first effects of the measures taken, which will continue to be implemented in 2009.
Mobilization of all teams around these goals will enable Imerys to keep its room to maneuver and consolidate its world leadership in industrial minerals."
The consolidated income statement, statement of changes in financial position and balance sheet are presented in appendix to this press release.
Sales totaled €3,449.2 million in 2008, up + 1.4% from 2007 (+ 4.2% over 9 months; - 7.1% in 4th quarter).
For 2008, the increase in sales takes into account:
At comparable Group structure and exchange rates, sales increased + 0.7% (+ 4.5% over 9 months; - 10.5% in the 4th quarter). This trend reflects:
In terms of the geographic distribution of sales, Western Europe represents 53% of turnover, of which 19% for France. North America accounts for 19%, Japan and Australia 5%. Emerging countries now represent 23% of the Group's sales, a + 16% increase from 2007.
Current operating income, at €403.4 million, decreased - 15.7% compared with 2007 (- 9.3% over 9 months; - 35.5% in the 4th quarter). It includes:
Allowing for the effects of exchange rates and changes in Group structure, current operating income decreased by - €64.6 million (i.e. - 13.5% of which: - 6.0% over 9 months; - 36.8% in the 4th quarter):
The Group's operating margin worked out at 11.7% compared with 14.1% in 2007.
The Group's share of net income from current operations totaled €267.1 million in 2008 (€316.7 million in 2007), i.e. a - 15.7% decrease (- 4.8% over 9 months; - 45.4% in the 4th quarter).
In addition to the drop in current operating income, this decrease factors in:
At €4.25 compared with €5.00 in 2007, net current income per share was down - 15.0% from 2007, with a slight decrease in the weighted average number of outstanding shares, at 62,801,382 compared with 63,330,652 in 2007.
(1) Of which, 2008 acquisitions: Astron China (China, February 2008), Svenska Silika Verken AB (Sweden, April 2008), Kings Mountain Minerals Inc (USA, October 2008) and Suzorite Mining Inc (Canada, October 2008).
The Group's share of net income totaled €161.3 million in 2008, compared with €284.2 million in 2007. It includes - €105.8 million in other operating revenue and expenses, net of tax (- €32.5 million in 2007).
Current operating cash flow(1) remained high at €458.4 million (€522.6 million in 2007). It takes into account:
After the highest-ever level of capital expenditure in 2007 (€367.0 million booked, i.e. 186.1% of depreciation expense), the 2008 program still invested a significant amount in the Group's development (€238.1 million booked, i.e. 123.3% of depreciation expense), focusing on:
Efforts by the Group's teams helped to improve the working capital/sales ratio from 24.8% in 2007 to 24.1% in 2008. Consequently, changes in operating working capital formed a resource of + €32.3 million (vs. a use of - €4.9 million in 2007).
In total, current free operating cash flow(3) increased significantly to €253.4 million (€174.1 million in 2007).
After allowing for - €33.6 million financial expense, net of tax, (- €41.2 million in 2007) and other working capital and non-cash items, for a total of - €40.0 million (- €15.5 million in 2007), mainly relating to the settlement of tax downpayments that proved far greater than the likely amount of tax owed in 2009, current free cash flow(4) totaled €179.8 million (€117.4 million in 2007).
After completing the acquisition of the Chinese activities of Astron (Imerys Astron China), a specialist in zircon products, the Group's acquisition policy has been highly selective, particularly since the beginning of the global economic crisis in early autumn 2008. The total cash impact of external growth operations was - €155.8 million (- €33.8 million excluding Imerys Astron China) for the period (- €232.8 million in 2007).
Finally, Imerys paid out €119.7 million in dividends in 2008 (€116.0 million in 2007).
Consolidated net financial debt at the end of the period increased to €1,566.1 million, compared with €1,343.0 million as on December 31, 2007. It represents 101.3% of shareholders' equity (80.7% in 2007) and 2.8 times EBITDA (2.1 times in 2007).
The Group's financial structure is sound with €2,353.6 million in total financial resources with an average maturity of 5.5 years as on December 31, 2008. No significant refund is scheduled until the end of 2012, with repayment dates spaced out after that. Funded by bonds (in euros, US dollars and Japanese yen) and multi-currency bank debt (bilateral lines, syndicated credit), Imerys' currency debt structure is consistent with its activities' cash flow generation.
(1) EBITDA minus tax on current operating income.
(2) Current operating income plus depreciation expense and provisions.
(3) Current operating cash flow minus paid capital expenditure and change in operating working capital.
(4) Current operating free cash flow minus financial expense net of tax, and change in other working capital items and non-cash items (deferred taxes and financial provisions).
(33% of consolidated sales)
| (€ millions) | 2008 | 2007 | Current change |
Compar able change(2) |
|---|---|---|---|---|
| Sales | 1,159.8 | 1,051.2 | + 10.3% | + 4.8% |
| Current operating income(1) | 125.9 | 145.4 | - 13.5% | - 9.0% |
| Booked capital expenditure | 70.4 | 78.7 | - 10.5% |
(1) Operating income before other operating revenue and expenses; (2) At comparable Group structure and exchange rates.
The business group's markets showed contrasting trends in 2008. The Minerals for Refractories, Fused Minerals (particularly refractories and abrasives) and Graphite (mobile energy) markets were all healthy in the first nine months when they benefited from a dynamic global market for industrial equipment (particularly steel, aluminum and glass), before slowing down very sharply towards the end of the year.
Ceramics markets remained affected throughout the year by the construction sector crisis in North America. In Europe, they went into a downturn at the end of the 1st quarter, because of the slump in the new construction sector.
In Minerals for Refractories, to support demand growth on some markets, particularly due to substitution to other minerals, a refractory clay calciner was built in the Andersonville (Georgia, United States) plant and the andalusite production capacity extension in Yilong (China), a company acquired in 2007, is in progress. Integration of the Ukrainian company Vatutinsky Kombinat Vognetryviv (Vatutinsky) resulted in major adjustments to production assets.
Various optimization actions were taken to reduce costs in Minerals for Abrasives (Zschornewitz, Germany and Domodossola, Italy); optimization of Imerys Astron China's industrial and commercial assets continues but is however behind the initial schedule.
In Minerals for Ceramics, the consolidation of feldspar production units – one of which was acquired in 2007 in the United States – is well under way.
Capital expenditure totaled €70.4 million, i.e. 114.0% of depreciation expense, compared with €78.7 million in 2007.
Sales in 2008 totaled €1,159.8 million in 2008. This figure takes into account the net effect of changes in Group structure for + €96.4 million, i.e. + 9.2%(1), and - €37.9 million in exchange rates impact (- 3.6%).
At comparable Group structure and exchange rates, sales rose + 4.8% during the period (of which + 9.4% over 9 months and - 8.2% in the 4th quarter).
(1) Baotou (China, February 2007), UCM Group PLC (United Kingdom, April 2007), Yilong (China, May 2007), ZAF (China, June 2007), Jumbo Mining (India, June 2007), Vatutinsky (Ukraine, July 2007), The Feldspar Corporation (USA, September 2007), Astron China (China, February 2008).
Current operating income for 2008 was €125.9 million (€145.4 million in 2007). Allowing for exchange rates (- €6.2 million) and Group structure (- €0.3 million) effects, the business group's current operating income decreased by - €13.0 million. The significant improvement in the price/mix component offsets the rise in variable costs (mainly energy and raw materials). The change in current operating income reflects the significant drop in sales volumes towards the end of the year with many production stoppages by customers.
Operating margin was 10.9% (13.8% in 2007), which also reflects the integration of newly-acquired companies with profitability that remains lower than for the business group's other activities.
(15% of consolidated sales)
| (€ millions) | 2008 | 2007 | Current change |
Compar able change(2) |
|---|---|---|---|---|
| Sales | 526.5 | 564.5 | - 6.7% | - 2.6% |
| Current operating income(1) | 45.0 | 48.4 | - 7.1% | - 10.6% |
| Booked capital expenditure | 47.7 | 60.2 | - 20.8% |
(1) Operating income before other operating revenue and expenses; (2) At comparable Group structure and exchange rates.
During the year, Performance Minerals markets (paint, plastic, ink, pharmaceuticals, etc.) went through a slump that worsened in the 2nd half with a downturn in construction markets in the main European countries. In North America, activity remained poor throughout the year with a further decrease in new housing compared with 2007. Filtration Minerals markets were stable overall, with demand softening at the very end of the year.
A highlight of 2008 was the optimization of the industrial base in all activities.
In Performance Minerals, the reorganization of the European kaolin production platform was completed in the 2nd half of 2008 with the closure of the Devon (UK) site. In the United States, capacity adjustments continued with, in particular, the transfer of calcined kaolin operations from the Dry Branch facility to Sandersville and the adaptation of the Sylacauga plant (ground calcium carbonates).
In Minerals for Filtration (World Minerals), the industrial optimization plan for the activity in North America was completed with the modernization of the Lompoc (California, USA) plant.
In Argentina, the acquisition of Perfiltra S.A. in 2007, enabled the Group to develop its perlite production base in the region. Production assets were optimized to improve performance.
Finally, in October 2008, the acquisition of Kings Mountain Minerals Inc and Suzorite Mining Inc, two companies that specialize in mining and processing mica, extended the mineral product range. With very high quality reserves and two production units (North Carolina, USA and Quebec, Canada), these activities achieve yearly sales of approximately US\$ 20 million. They are a useful addition to the Performance Minerals offering (especially plastic and paint applications).
Capital expenditure totaled €47.7 million, i.e. 155.7% of depreciation expense, compared with €60.2 million in 2007.
Sales, at €526.5 million in 2008, decreased - 6.7% from 2007. This decrease takes into account a negative exchange rates effect of - €29.8 million (- 5.3%) and a positive Group structure impact of + €6.7 million (+ 1.2%)(1). At comparable Group structure and exchange rates, sales decreased - 2.6% (of which + 0.4% over 9 months and - 12.8% in the 4th quarter), with the improvement in the price/mix component not totally offsetting the impact of lower volumes, mainly recorded in Performance Minerals.
Current operating income totaled €45.0 million (€48.4 million in 2007). Excluding Group structure (+ €0.9 million) and exchange rates (+ €0.8 million) effects, the business group's operating performance was down - €5.1 million. The improvement in the price/mix component offset the rise in variable costs. Reorganizations carried out since 2007 led to a significant reduction in the fixed costs and overheads base in Performance Minerals, but also in Minerals for Filtration, where the Lompoc unit optimization plan was completed in the 2nd half of the year. This reduction limited the impact of the slump in volumes.
Operating margin was stable at 8.5% (8.6% in 2007).
(22% of consolidated sales)
| (€ millions) | 2008 | 2007 | Current change |
Compar able change(2) |
|---|---|---|---|---|
| Sales | 764.4 | 798.9 | - 4.3% | - 0.5% |
| Current operating income(1) | 55.2 | 83.9 | - 34.2% | - 25.5% |
| Booked capital expenditure | 63.5 | 174.7 | - 63.7% |
(1) Operating income before other operating revenue and expenses; (2) At comparable Group structure and exchange rates.
In Pigments for Paper, global production of printing and writing papers decreased slightly over the period (- 1.8%) with a significant reduction in productions levels in the 4th quarter. Production continued to rise in Asia-Pacific (+ 2.6%). However, it decreased in Europe and North America, where the main papermakers continue to restructure.
Cost base reduction efforts in kaolin for paper continued throughout the year. After the transfer of coating kaolin for paper production from the United Kingdom to Brazil, which was effective early in the year, the optimization of the new industrial and logistical platform was completed. In parallel, to adapt to lower demand, kaolin production capacities at the Sandersville (Georgia, United States) unit were reduced in the 3rd quarter. In addition, it was decided in the United Kingdom to restructure support functions and shut down the Salisbury GCC plant; this measure should be effective in the first few months of 2009.
At the same time, the business group continued its progress in calcium carbonates, which now account for more than half its sales volumes. In Asia-Pacific, where markets remain firm, the capital expenditure projects carried out in 2007 in Niigata (Japan) and Kerinci (Indonesia) are operating at full capacity.
(1) Xinlong (China, May 2007), Perfiltra (Argentina, May 2007), Kings Mountain Minerals Inc (USA, October 2008) and Suzorite Mining Inc (Canada, October 2008)
Capital expenditure totaled €63.5 million, i.e. 106.0% of depreciation expense, compared with €174.7 million in 2007.
Sales, at €764.4 million in 2008, were down - 4.3% from 2007. This change takes into account the negative effect of exchange rates at - €27.0 million (- 3.4%). At comparable Group structure and exchange rates, sales were stable over the year (- 0.5%, of which + 2.6% over 9 months and - 10.1% in the 4th quarter), with the improvement in the price/mix component offsetting the lower volumes recorded in Europe and the United States.
Current operating income amounted to €55.2 million (€83.9 million in 2007). This result includes the negative impact of exchange rates (- €7.1 million). At comparable Group structure and exchange rates, the business group's operating performance was down - €21.4 million. In addition to the negative exchange rates effect, the business group was affected by very high inflation in its variable costs for most of the year, which was not fully offset by the price rises implemented. On the other hand, the restructuring of the Group's coating kaolin production base had the expected results.
Operating margin decreased to 7.2% (10.5% in 2007).
(30% of consolidated sales)
| (€ millions) | 2008 | 2007 | Current change |
Compar able change(2) |
|---|---|---|---|---|
| Sales | 1,041.4 | 1,025.7 | + 1.5% | - 0.1% |
| Current operating income(1) | 225.4 | 235.4 | - 4.2% | - 6.3% |
| Booked capital expenditure | 52.0 | 53.2 | - 2.3% |
(1) Operating income before other operating revenue and expenses; (2) At comparable Group structure and exchange rates.
In Building Materials, business slumped significantly in the 2nd half after several years of steady growth. Over the year, housing starts were down almost - 15%. However, thanks to a more stable roofing market and to further penetration by clay bricks, sales volumes in France were down only - 6.8% for clay roof tiles and - 2% for clay bricks.
The Monolithic Refractories market benefited from buoyant business until the last few weeks of the year when demand fell as a result of some customers' production stoppages, particularly in the iron & steel sector.
In that context, productivity improvement efforts continued in Building Materials. The new equipment installed on production lines in the Saint-Germer-de-Fly (Oise) clay roof tiles plant is working at full capacity. Moreover, capital expenditure projects to improve industrial efficiency were completed in the Sainte-Foy l'Argentière (Rhône) and Phalempin (Nord) units and a production line was stopped in Quincieux (Rhône).
In bricks in France, rectified brick production capacities were optimized at the Gironde-sur-Dropt (Gironde) plant in 2008 and are in the optimization process at the La Boissière du Doré (Loire-Atlantique) plant. Finally, given the slowdown on the construction market in France, the Bessens (Tarn & Garonne) plant is being shut down and its production relocated to other sites.
In November 2008, Imerys Terre Cuite signed a partnership agreement with EDF ENR (Energies Renouvelables Réparties, distributed renewable energies) to create a joint venture with the aim of developing and manufacturing efficient and innovative integrated photovoltaic roof tiles. The new entity intends to make electricity generation widespread on conventional roofs, particularly during roofing renovation.
In Monolithic Refractories, the year was marked by the successful integration of ACE, the Indian leader in the sector. External growth continued with the acquisition on April 30, 2008, of Svenska Silika Verken AB, a Swedish producer of monolithic refractory products (€13.0 million sales in 2007).
Capital expenditure totaled €52.0 million, i.e. 135.5% of depreciation expense, compared with €53.2 million in 2007.
At €1 041.4 million, the business group's sales rose + 1.5% with a €31.6 million (+ 3.1%) effect of changes in Group structure(1) and a - €14.9 million (- 1.4%) exchange rates impact. At comparable Group structure and exchange rates, sales were stable for the year (- 0.1%, of which + 3.9% over 9 months and - 11.7% in the 4th quarter).
Current operating income is €225.4 million, compared with €235.4 million in 2007. Allowing for the effects of changes in Group structure (+ €6.2 million) and exchange rates (- €1.4 million), the business group's operating performance was down - €14.8 million. Over the period, this trend was entirely due to lower volumes, with the improvement in the price/mix component offsetting inflation in variable costs.
Operating margin remained high at 21.6%, (22.9% in 2007).
The Group's workforce numbered 17,016 as at year-end 2008 (17,552 employees as on December 31st, 2007), with the following changes during the period: the headcount totaled approximately 18,200 employees in February after the acquisition of Astron's activities in China (Imerys Astron China), then was stable overall until decreasing in mid-year, primarily because of industrial reorganization in Cornwall (UK), the reorganization of the Ukrainian company Vatutinsky acquired in 2007, and restructuring programs in the activities affected by the global economic crisis.
These changes shaped the Human Resources teams' activity in 2008 to a large extent. Particularly for the integration of recently-acquired companies, the changes were supported by an extensive recruitment program and a significant number of in-house promotions. In practical terms, more than 25 managers (i.e. 2/3 of senior management vacancies) were promoted to significant responsibilities during the 1st half. The difficult international context facing most of the Group's activities since late autumn makes efficient internal mobility even more crucial.
As regards the restructuring programs in progress, in accordance with its policy, Imerys strives to mobilize all internal and external placement solutions through personalized training and support measures.
The Group's international scope gives it particular responsibilities with respect to its employees, its shareholders, the communities where it is based and the environment.
Sustainable Development strategy is defined by a Steering Committee, three members of which are also on the Executive Committee. The Board of Directors pays growing attention to Sustainable Development risks and issues. Plan and results in this area were examined in January 2009 by the Audit Committee. The findings of that review will be presented to the Board of Directors at its next meeting. They concern all aspects of Sustainable Development: safety, environment, community relations, human rights, human resources, corporate governance and the products of the future.
Safety is a top priority for Imerys. Thanks to the mobilization of the Group's people, the lost-time accident rate has been cut by more than 60% since 2005. To make further progress, Imerys is stepping up its preventive efforts in the six areas that cause the most serious accidents and systematically analyzes accidents to draw lessons for the Group.
(1) Divestment if clay bricks and roof tiles activities in Spain & Portugal (August 2007), acquisitions of B&B (South Africa, August 2007), ACE (India, September 2007) and Svenska Silika Verken AB (Sweden, April 2008).
As regards the environment, beyond compliance with local regulations, Imerys has developed eight common environmental standards for all its activities. To step up improvement, in 2008 the Group began rolling out an Environment Action Plan based on the Safety Plan methodology.
Finally, the Group fosters the integration of its activities into their environment through active involvement with local communities. Since late 2007, a protocol for community relations has set down commitment principles.
As regards Governance, a highlight of 2008 was a change in the composition of the Board of Directors with the cooptation in July 2008 of Mr. Amaury de Sèze in succession to Mr. Paul Desmarais, Jr., and the resignation of Mr. Grégoire Olivier in November. On February 13, 2008, on the proposal of the Chief Executive Officer, the Board also appointed Mr. Jérôme Pecresse as Delegate Chief Executive Officer of the Company.
The Board conducted the annual self-appraisal of its functioning and work, which it judged satisfactory. At the same time, it was decided to extend the duties of the Audit Committee by having it review the Group's Sustainable Development policy and monitor its results, which were the focus of Imerys' third specific report on the issue, published in July 2008.
Finally, in its last meeting of the year, the Board carefully examined the recommendations arising from the AFEP-MEDEF Corporate Governance Code on the compensation of corporate officers. It considered that they were perfectly in line with the Corporate Governance implemented by the Company for several years and was satisfied to note that most of them were already implemented. Consequently, the Board confirmed that Imerys would now use the AFEP-MEDEF Corporate Governance Code, as amended by those new recommendations, as a reference, and would give its reasons in the event that any provisions were not applied.
***
The world leader in adding value to minerals, Imerys is active in 47 countries through approximately 260 industrial and commercial sites. The Group achieved almost €3.5 billion in sales in 2008. Imerys mines and processes minerals from reserves with rare qualities in order to develop solutions that improve its customers' product performance and manufacturing efficiency. The Group's products have a great many applications in everyday life, including construction, personal care, paper, paint, plastic, ceramics, telecommunications and beverage filtration.
Analyst/Investor Relations: Isabelle Biarnès – +33(0)1 49 55 63 91 Pascale Arnaud – +33(0)1 49 55 63 23
Press contacts: Isabelle Biarnès – +33(0)1 49 55 63 91 /66 55 Matthieu Roquet-Montégon – +33(0)6 16 92 80 65
| Change in consolidated sales | % current change |
% structure effect |
% change effect |
% comparable change(1) |
|---|---|---|---|---|
| GROUP TOTAL | + 1.4% | + 3.9% | - 3.2% | + 0.7% |
| Quarterly comparable change | Q 1 | Q 2 | Q 3 | Q 4 |
| 2008 vs 2007 | + 3.2% | + 5.1% | + 5.0% | - 10.5% |
| Q 1 | Q 2 | Q 3 | Q 4 | |
| 2007 vs 2006 (reminder) | + 4.3% | + 4.5% | + 3.8% | + 4.1% |
| Quarterly comparable change | Q4 '07 | Q4 '08 | % current change |
% comparable change(1) |
2007 | 2008 | % current change |
% comparable change(1) |
|---|---|---|---|---|---|---|---|---|
| Minerals for Ceramics, Refractories, Abrasives & Foundry |
274.2 | 269.1 | - 1.9% | - 8.2% | 1 051.2 | 1 159.8 | + 10.3% | + 4.8% |
| Performance & Filtration Minerals |
128.1 | 119.6 | - 6.5% | - 12.8% | 564.5 | 526.5 | - 6.7% | - 2.6% |
| Pigments for Paper | 194.0 | 181.4 | - 6.1% | - 10.1% | 798.9 | 764.4 | - 4.3% | - 0.5% |
| Materials & Monolithics | 262.7 | 228.4 | - 13.1% | - 11.7% | 1 025.7 | 1 041.4 | + 1.5% | - 0.1% |
| TOTAL | 849.4 | 788.9 | - 7.1% | - 10.5% | 3 401.9 | 3 449.2 | + 1.4% | + 0.7% |
| Quarterly change | Q1 '08 | Q2 '08 | H1 '08 | Q3 '08 | Q4 '08 | H2 '08 | 2008 |
|---|---|---|---|---|---|---|---|
| Imerys Group – current change | + 3.9% | + 4.3% | + 4.1% | + 4.5% | - 7.1% | - 1.3% | + 1.4% |
| Imerys Group – comparable change, of which: |
+ 3.2% | + 5.1% | + 4.2% | + 5.0% | - 10.5% | - 2.7% | + 0.7% |
| Minerals for Ceramics, Refractories, Abrasives & Foundry |
+ 6.3% | + 11.1% | + 8.8% | + 10.6% | - 8.2% | + 0.8% | + 4.8% |
| Performance & Filtration Minerals |
- 1.9% | + 0.0% | - 0.9% | + 3.0% | - 12.8% | - 4.3% | - 2.6% |
| Pigments for Paper | + 3.9% | + 3.9% | + 3.9% | + 0.0% | - 10.1% | - 4.9% | - 0.5% |
| Materials & Monolithics | + 3.0% | + 3.6% | + 3.3% | + 5.1% | - 11.7% | - 3.5% | - 0.1% |
| Sales by geographic destination | 2008 | 2007 |
|---|---|---|
| Western Europe | 53% | 55% |
| - of which France | 19% | 20% |
| North America(2) | 19% | 20% |
| Japan / Australia | 5% | 5% |
| Emerging countries | 23% | 20% |
| TOTAL | 100% | 100% |
(1) Change at comparable Group structure and exchange rates.
(2) United-States & Canada.
(1) Change at comparable Group structure and exchange rates.
| Sales by business group | 2008 | 2007 |
|---|---|---|
| Minerals for Ceramics, Refractories, Abrasives & Foundry |
33% | 30% |
| Performance & Filtration Minerals | 15% | 16% |
| Pigments for Paper | 22% | 24% |
| Materials & Monolithics | 30% | 30% |
| TOTAL | 100% | 100% |
| (€ millions) | Q4 '08 | Q4 '07 | Change | H2 '08 | H2 '07 | Change |
|---|---|---|---|---|---|---|
| SALES | 788.9 | 849.4 | + 7.1% | 1,675.1 | 1,697.1 | - 1.3% |
| CURRENT OPERATING INCOME | 75.2 | 116.6 | - 35.5% | 167.2 | 235.4 | - 29.0% |
| Financial income (expense) | (16.4) | (13.8) | (17.2) | (26.8) | ||
| Current tax | (16.0) | (21.1) | (37.9) | (49.8) | ||
| Minority interests / equity method | 3.6 | 3.1 | 5.5 | 3.1 | ||
| NET INCOME FROM CURRENT OPERATIONS (1) | 46.3 | 84.8 | - 45.4% | 117.6 | 161.9 | - 27.4% |
| Other revenue and expenses, net | (80.7) | (17.4) | (97.9) | (29.2) | ||
| NET INCOME (1) | (34.4) | 67.4 | n.a. | 19.7 | 132.7 | n.a. |
(1) Group's share.
| (€ millions) | ||
|---|---|---|
| 2008 | 2007 | |
| Revenue | 3,449.2 | 3,401.9 |
| Raw materials and consumables used | (1,268.5) | (1,159.9) |
| External expenses | (890.7) | (867.7) |
| Staff expenses | (652.3) | (685.4) |
| Taxes and duties | (53.0) | (47.9) |
| Amortization, depreciation and impairment losses | (193.2) | (197.4) |
| Other operational revenue and expenses | 11.9 | 34.7 |
| Current operating income | 403.4 | 478.3 |
| Income on asset disposals | 0.1 | (1.3) |
| Impairment losses, restructuring and litigation | (115.0) | (44.7) |
| Other operating revenue and expenses | (114.9) | (46.0) |
| Operating income | 288.5 | 432.3 |
| Income from securities | 4.1 | 5.7 |
| Gross financial debt expense | (61.1) | (63.7) |
| Net financial debt expense | (57.0) | (58.0) |
| Other financial revenue | 231.9 | 50.5 |
| Other financial expenses | (221.2) | (48.2) |
| Financial income (loss) | (46.3) | (55.7) |
| Income taxes | (88.9) | (96.6) |
| Share in net income of associates | 10.4 | 6.9 |
| Net income | 163.7 | 286.9 |
| of which: | ||
| Net income, Group share | 161.3 | 284.2 |
| Net income, minority interests | 2.4 | 2.7 |
| Net income, Group share | 161.3 | 284.2 |
| of which: | ||
| Net income from current operations, Group share | 267.1 | 316.7 |
| Other net operating revenue and expenses, Group share | (105.8) | (32.5) |
| (in €) | ||
| Net basic earnings per share from current operations Net basic earnings per share |
4.25 2.57 |
5.00 4.49 |
| Diluted net earnings per share | 2.56 | 4.49 |
| Average exchange rate euro/USD | 1.4708 | 1.3702 |
| (€ millions) | 2008 | 2007 |
|---|---|---|
| CONSOLIDATED ASSETS | ||
| Goodwill | 899.4 | 860.7 |
| Intangible assets | 45.0 | 49.3 |
| Mining assets | 395.6 | 399.6 |
| Property, plant and equipment | 1,314.0 | 1,280.9 |
| Investments in associates | 51.6 | 42.9 |
| Available-for-sale financial assets | 5.5 | 9.0 |
| Other financial assets | 13.8 | 11.3 |
| Other receivables | 40.4 | 46.8 |
| Derivative financial assets | 18.7 | 5.6 |
| Deferred tax assets | 55.9 | 59.4 |
| Total non-current assets | 2,839.9 | 2,765.5 |
| Inventories | 611.0 | 502.0 |
| Trade receivables | 523.3 | 623.4 |
| Other receivables | 154.2 | 133.3 |
| Derivative financial assets | 1.1 | (0.6) |
| Marketable securities and other financial assets | 4.4 | 5.3 |
| Cash and cash equivalents | 214.0 | 173.4 |
| Total current assets | 1,508.0 | 1,436.8 |
| TOTAL CONSOLIDATED ASSETS | 4,347.9 | 4,202.3 |
| CONSOLIDATED LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Capital | 125.6 | 126.3 |
| Premiums | 115.8 | 131.7 |
| Reserves | 1,123.7 | 1,097.5 |
| Net income, Group share | 161.3 | 284.2 |
| Shareholders' equity, Group share | 1,526.4 | 1,639.7 |
| Minority interests | 19.9 | 23.9 |
| Shareholders' equity | 1,546.3 | 1,663.6 |
| Provisions for employee benefits | 133.2 | 177.7 |
| Other provisions | 153.7 | 150.5 |
| Loans and financial debts | 1,054.7 | 1,021.1 |
| Other debts | 13.6 | 23.0 |
| Derivative financial liabilities | 19.2 | 12.5 |
| Deferred tax liabilities | 75.4 | 53.9 |
| Total non-current liabilities | 1,449.8 | 1,438.7 |
| Other provisions | 20.8 | 14.8 |
| Trade payables | 337.9 | 321.5 |
| Income taxes payable | 13.4 | 30.0 |
| Other debts | 199.7 | 240.3 |
| Derivative financial liabilities | 49.8 | 2.8 |
| Loans and financial debts | 727.3 | 388.0 |
| Bank overdrafts | 2.9 | 102.6 |
| Total current liabilities | 1,351.8 | 1,100.0 |
| TOTAL CONSOLIDATED LIABILITIES AND SHAREHOLDERS' EQUITY | 4,347.9 | 4,202.3 |
| Net financial debt | 1,566.1 | 1,343.0 |
| Closing exchange rate euro/USD | 1.3917 | 1.4721 |
| (€ millions) | 2008 | 2007 |
|---|---|---|
| Cash flow from operating activities | ||
| Cash flow generated by current operations | 576.3 | 612.9 |
| Interests paid | (46.6) | (58.4) |
| Income taxes on current operating income and financial income (loss) | (127.1) | (118.0) |
| Dividends received | 4.4 | 2.6 |
| Cash flow generated by other operating revenue and expenses | (41.8) | (41.2) |
| Cash flow from operating activities | 365.2 | 397.9 |
| Cash flow from investing activities | ||
| Acquisitions of property, plant and equipment and intangible assets | (247.9) | (351.9) |
| Acquisitions of investments in consolidated entities after deduction of cash acquired | (142.6) | (191.4) |
| Acquisitions of available-for-sale financial assets | - | - |
| Disposals of property, plant and equipment and intangible assets | 20.9 | 27.5 |
| Disposals of investments in consolidated entities after deduction of cash disposed of | 0.9 | 18.4 |
| Disposals of available-for-sale financial assets | 0.3 | - |
| Net change in financial assets | (0.6) | (0.4) |
| Paid-in interests | 2.9 | 2.8 |
| Cash flow from investing activities | (366.1) | (495.0) |
| Cash flow from financing activities | ||
| Capital increases | 0.9 | 15.9 |
| Capital decreases | (17.4) | (42.1) |
| Disposals (acquisitions) of treasury shares | 11.5 | (13.6) |
| Dividends paid to shareholders | (119.0) | (114.2) |
| Dividends paid to minority interests | (0.7) | (1.8) |
| Loan issues | 490.8 | 503.4 |
| Loan repayments | (15.2) | (402.8) |
| Net change in other debts | (205.1) | 93.9 |
| Cash flow from financing activities | 145.8 | 38.7 |
| Change in cash and cash equivalents | 144.9 | (58.4) |
| Cash and cash equivalents at the beginning of the period | 70.8 | 136.5 |
| Change in cash and cash equivalents | 144.9 | (58.4) |
| Impact of changes due to exchange rate fluctuations | (4.4) | (7.3) |
| Impact of changes in accounting policies | (0.1) | - |
| Cash and cash equivalents at the end of the period | 211.2 | 70.8 |
| Cash and cash equivalents | 214.0 | 173.4 |
| Bank overdrafts | (2.8) | (102.6) |
| Cash and cash equivalents at the end of the period | 211.2 | 70.8 |
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