Press Release 28 September 2010 Financial results for the first half of 2010
Revenue of € 1,050 million, an overall increase of 9.6% compared to the first half of last year, and a like-for-like* increase of 3.7%.
Operating income (EBIT) of € 95 million, an overall increase of 83.4% compared to the first half of last year, and a like-for-like* increase of 72.9%.
Difficult trading conditions persisted in many markets, particularly within Europe.
Improved trading conditions in North America and stabilisation of demand and margin recovery in Australasia.
The unaudited interim financial information for the first half of the year 2010 was presented to the Board of Directors at its meeting held on 24 September.
COMMENTS The financial performance in the first half of 2009 was substantially impacted by the extremely difficult circumstances that were prevailing at that time. In the first half of 2010 the results significantly improved compared to those of the first half of last year. Revenue in the first half of 2010 was € 1,050 million (2009: € 959 million), an overall increase of 9.6%. Exchange rate movements positively impacted revenue by 5.9%, mainly as a result of the weakening of the Euro during the period. The underlying increase in revenue was 3.7%. Operating income was € 95 million (2009: € 52 million), an overall increase of 83.4%. At constant exchange rates, the increase in operating income was 72.9%. Whilst the trading environment remained difficult for many businesses and showed little significant recovery in levels of demand, there was, however, an overall slight increase in revenue. North America, especially Canada, was the main exception to these general low levels of activity. Financial performance improved compared to the first half of last year. Faced with these difficult trading conditions, the Group continued with its across-the-board prudent cash management policy focused on strict working capital management and tight control of all costs. This approach to cash management will enable the Group to bring capital expenditure back to more normalised levels, thus ensuring preservation of the Group’s long term competitiveness. Key projects fundamental to the Group’s future strategic direction have been and will continue to be carried out according to plan. Net Financial Debt at 30 June 2010 was € 411 million, € 103 million below that at 30 June 2009. Europe Subject to a limited number of exceptions, the trading environment in Europe remained difficult and without a real or sustained economic recovery. The businesses operating in the UK market experienced sustained low sales volumes and continued to implement their cost base reduction programmes. The performance in other regions of Europe reflected patchy recovery of activity levels in markets that continued to be challenging. During the first half of the year, the businesses in the Utilities and Industry Division generally benefited from slightly better market conditions than those in the Building Products and Sanitary Division.
North America North America, and in particular Canada, being the first region to be hit by the economic recession and where quick restructuring measures were implemented, benefited from improved trading conditions compared to the previous period. Australasia In Australasia demand levels stabilised and, in the absence of a real recovery in trading, the businesses benefited from the restructuring measures implemented in previous periods. Latin America Latin America remained challenging and, pending a real upturn, the business focus is on improving financial performance.
OUTLOOK FOR THE SECOND HALF OF 2010 Looking forward, due to the uncertain economic environment, the Group does not foresee a significant improvement of market conditions in the short or the medium term and reduction of the cost base and margin improvement will remain the key elements of focus for the foreseeable future. Strategic projects will continue to be funded so that the Group can fully benefit from the upturn in trading conditions when it occurs. The improvement of the results of the first half of 2010 compared to the first half of 2009 cannot be extrapolated to the full year 2010.
SUMMARY FINANCIAL INFORMATION First half
Condensed Interim Consolidated Income Statement (€ million)
% of revenue
Profit before income taxes
Operating income (EBIT) % of revenue
Full year 2009
attributable to : ■
Group equity holders
First half Full year 2009
Earnings per share 2010 Basic earnings per share (€)
Condensed Consolidated Balance Sheet
31 December 2009
Property, Plant and Equipment
Non Current Investments
Other Non Current Assets
Total Non Current Assets
Non Cash Working Capital
Equity (attributable to Group)
Non Current Liabilities
Deferred Tax Liabilities (net)
Non-controlling interests Total Equity
Net Financial Debt Total
*Like-for-like being at constant exchange rates and excluding the impact of changes in scope of consolidation ** Current EBITDA being EBITDA before non-recurring items
Contact: Manuel Monard (Group Corporate Development Finance Manager) Tel. 32-2-775 5050 â€“ Fax. 32-2-775 5051 E-mail: firstname.lastname@example.org