Compagnie de Saint-Gobain S.A. Business Report FY ended Dec. 2019
Financial Overview |
(in million EUR) |
FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of change (%) | Factors | |
Net Sales | 42,573 | 41,774 | 1.9 | 1) |
Operating Income | 3,390 | 3,207 | 5.7 | - |
Factors
1) Net Sales
-The Company’s sales during the fiscal year ended December 31, 2019, increased by 1.9% over the previous year to EUR 42,573 million. Sales benefited from a 0.7% positive currency translation effect and an increase of volumes by 0.6%.
-The Company’s sales in its Mobility business unit of High Performance Solutions increased slightly during the fiscal year despite a weakening automotive market. In particular, the focus on high value-added products, particularly for electric vehicles, has resulted in sales gains in the business unit.
Acquisitions
-The Company announced that it has acquired Pritex, a key player in acoustic and thermal insulation solutions made from polymer-based composite materials for the mobility market. This acquisition will allow the Company’s Mobility business unit within its High Performance Solutions segment to expand its business model beyond automotive glazing and become a provider of solutions in the mobility market for comfort, safety and energy saving. With the development of electric vehicles, the need for differentiated noise control and lightweight solutions is gaining momentum. Pritex employs 240 people and achieved close to EUR 20 million in sales in 2018. The 60-year old company, based in the United Kingdom, is developing a strong presence in Europe. (From a press release on May 28, 2019)
Divestitures
-The Company announced the completion of the sale of its silicon carbide grains and powders business, which delivered annual sales of approximately EUR 120 million, to the private equity firm OpenGate Capital. This transaction is in line with the Company’s portfolio optimization strategy aimed at divesting businesses totaling sales of more than EUR 3 billion by the end of 2019. (From a press release on May 14, 2019)
R&D Expenditures |
(in million EUR) |
FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
Overall | 466 | 454 | 446 |
R&D Facilities
-The Group has eight research centers.
Facilities | Locations | |
Saint―Gobain Research Paris(SGR PARIS) | France | Glass, Surfaces, Construction materials, Habitat |
Saint-Gobain Recherche Compiegne (SGR COMPIÈGNE) | France | Automotive glass, Building glass, Thin films, Acoustics and optics |
Saint-Gobain Research Provence (SGR PROVENCE) | France | High temperature, Mineral materials processing, Chemical powders processing, Functional ceramics |
Saint-Gobain Research Germany | Germany | Flat Glass, Thin Film Coatings and Surfaces, Complex Glass Products. |
Saint-Gobain Research North America (SGR North America) | US | Polymer composites: films, foams, fabrics, bearings and seals, Ceramics materials for fuel cells, LED lighting, armor, grains and powders, Abrasives for manufacturing, automotive and aeronautical industries, Habitat |
Saint-Gobain Research Brasil (SGR Brasil) | Brazil | Material Science (mineral binders and aggregates, polymers, abrasives, gypsum, fibers, recycled materials), Building Physics (sustainable habitat, thermal, acoustic and visual comfort). |
Saint-Gobain Research Shanghai (SGR Shanghai) | China | Polymer materials and processing, Abrasives, Powder processing, Optics and inspection |
Saint-Gobain Research India (SGR India) | India | Abrasives, plastics, ceramics and application technology: Advanced engineering and design, Building and automotive glass, Habitat solutions for hot-humid climates |
Capital Expenditure |
(in million EUR) |
FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
Total | 1,818 | 1,855 | 1,538 |
-The Company expects that its capital expenditure during the fiscal year ending December 31, 2020 to total approximately EUR 1.6 billion.
Investments outside France
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-The Company opened a new float glass production line located in Sriperumbudur, near Chennai, India. This new state-of-the-art facility was built within the Saint-Gobain World Glass Complex, a 70-hectare industrial site which already includes two float production lines, two coaters, advanced glass processing units for the construction industry, fire safety and the automotive industry, as well as a mirror line. This new production line represents a EUR 115 million investment and complements Saint-Gobain’s industrial glass facilities in India, which also include a float glass production line in Bhiwadi, Rajasthan and another in Jhagadia, Gujarat. (From a press release on January 28, 2019)