PARIS, July 30, 2010 /PRNewswire-FirstCall/ --
- Organic* Growth in Sales, up + 16.0%: Upturn in Volumes, Faster Inventory Rebuilding in Second Quarter
- Operating Margin: 12.8%
- Sharp Growth in net Current Income to 122 MEUR (+ 161%)
- Acquisition of Para Pigmentos S.A. (PPSA): Brazilian Mining and Industrial Assets Bolstered in Kaolin for Paper and Packaging
On Thursday, July 29, 2010, Imerys' Board of Directors, meeting under the
chairmanship of Aimery Langlois-Meurinne, examined the Group's financial
statements for the 1st half of 2010, as presented by Chief Executive Officer
Gerard Buffiere.
Consolidated results 1st half 1st half %
(EUR millions) 2010 2009 current
change
Sales 1 623.0 1 374.0 + 18.1%
Current operating income(1) 207.3 110.0 + 88.4%
Operating margin 12.8% 8.0%
Net income from current operations, 122.0 46.7 + 161.3%
Group's share(2)
Net income, Group's share 119.1 11.7 n.s.
Financing
Current operating cash flow(3) 259.0 172.6 + 50.1%
Current free operating cash flow(4) 127.6 187.7 - 32.0%
Booked capital expenditure 50.7 56.9 - 10.9%
Net financial debt 990.1 1 148.2 - 13.8%
Data per share
Net income from current operations,
Group's share (2)(5) EUR1.62 EUR0.68 + 137.8%
(1) Operating income before other operating revenue and expenses, including share of joint operations.
(2) Group's share of net income, before other operating revenue and expenses, net.
(3) EBITDA minus notional tax on current operating income.
(4) Current operating cash flow minus change in operating working capital and paid capital expenditure.
(5) The weighted average number of outstanding shares (adjusted following the rights issue of June 2, 2009) rose to 75,449,904 in the 1st half of 2010 compared with 68,688,790 in the 1st half of 2009.
Gerard Buffiere stated, "Our sales volumes grew in the first half, especially the second quarter, leading to a substantial improvement in operating performance. Inventory rebuilding in the value chain, made a significant contribution to that upturn. We do not feel that this trend can be extrapolated to the coming quarters as the global macro-economic environment remains uncertain. We continue to develop and to optimize our businesses, as reflected in our investment in a new carbonate for paper and packaging plant in China and a kaolin activity in Brazil. In this context, unless the economic environment deteriorates heavily, the Group should achieve an operating margin of more than 12% for fiscal year 2010."
(*) At comparable Group structure and exchange rates.
ECONOMIC ENVIRONMENT
The 1st half of 2010 was marked by further growth in emerging countries - which now represent 26% of the Group's sales. Global economic activity improved, driven by significant inventory rebuilding, which picked up speed in the 2nd quarter, particularly in industrial related sectors.
Business was firm in these markets. The automotive, major industrial equipment and infrastructure sectors benefited from dynamic activity in emerging countries and stimulus measures in some developed countries. In the 1st half of 2010, global steel production was very slightly higher than the pre-crisis levels recorded in the 1st half of 2008, driven by China. In North America, Europe and Japan, however, it remained approximately - 18% below 2008 levels.
Global printing and writing paper production rose + 7% compared with the 1st half of 2009, with an upturn in mature countries and healthy emerging markets. Currency trends contributed to higher performance by European papermakers, whose export sales increased. American producers benefited from positive trends on their local market.
Construction markets, affected by adverse weather conditions in January and February, were slack in Europe and North America, where housing starts remain very low. In France, a moderate upturn was recorded towards the end of the period, reflecting the first effects of the recovery of single- family housing sales observed since mid-2009. The renovation segment held out well overall, especially in Germany and France.
Trends on mass consumption-related markets, such as filtration, remained healthy.
FURTHER IMPROVEMENT IN OPERATING PERFORMANCE
The flexibility of its industrial assets enabled Imerys to draw full benefit from the upswing in sales volumes, which rose 14.1% in the first half. Thanks to the control of overheads and fixed production costs, every business group regained an operating margin of more than 10%.
GOVERNANCE
On June 9, it was announced that Gilles Michel would join Imerys in the fall of 2010. After approval of the project by the Company's relevant corporate bodies, his nomination as Chairman & CEO of Imerys will be proposed at the Shareholders' General Meeting that rules on the 2010 financial statements.
POST CLOSING EVENTS SINCE JUNE 30, 2010
Kaolin for paper and packaging assets acquired in Brazil
Imerys announces the signing of an agreement with the Brazilian group Vale to acquire its 86.2% stake in the Brazilian company Para Pigmentos S.A . (PPSA), as well as mining rights in Para State for a total price of approximately USD 70 million.
Through this operation, Imerys is enhancing its Brazilian resources with a kaolin for paper deposit, a processing plant and logistic capacities - a pipeline and harbor terminal - located near its Rio Capim Caulim Pigments for Paper industrial activities. This operation will enable the business group to secure its supply of white pigment for global paper and packaging markets and to control its long-term mining costs more effectively.
The acquisition, financed by available resources, was settled on July 26, 2010. It will be consolidated in the Group's accounts as from August 1, 2010.
OUTLOOK
Economic stimulus plans and the inventory rebuilding movement contributed to the improvement observed in the 1st half. The incentive measures and demand stimulus plans (automotive, construction, infrastructure, etc.) set up in some countries are drawing to an end and visibility remains low for the next quarters, with a macro-economic outlook that varies from one market to another.
In that context, given the actions implemented over the past 18 months, the Group estimates that its operating margin should be greater than 12% in 2010. The priority remains the continuation of internal and external growth , together with very tight management.
DETAILED COMMENTARY ON THE GROUP'S RESULTS SALES
Sales Sales Change in Change on of of which
H1 2010 H1 2009 sales comparable which Price/Mix
(% basis(1) Volume effect
(EUR millions) (EUR previous (% effect
millions) year) previous
year)
1st
quarter (2) 751.6 694.3 + 8.2% + 9.5% + 7.6% + 1.9%
2nd
quarter (2) 871.4 679.7 + 28.2% + 22.7% + 20.8% + 1.9%
1st half 1,623.0 1,374.0 + 18.1% + 16.0% +14.1% +1.9%
- Faster growth in sales volumes
- High impact of inventory rebuilding, particularly in industrial
equipment-related activities
- Favorable trend in product price and mix
First half 2010 sales totaled EUR1,623.0 million (+ 18.1% from 1st half 2009). This rise takes into account:
- A limited change in Group structure(3) of - EUR6.0 million;
- An exchange rate effect of + EUR34.9 million, particularly reflecting
the euro's depreciation against other currencies, except the US dollar.
At comparable Group structure and exchange rates, the rise in turnover (+ 16.0% vs. 1st half 2009) marks the overall recovery of sales volumes (+ 14.1%). Trends, however, were more contrasted between business groups. The price/mix component improved + 1.9%.
It should be remembered that activity in the 1st half of 2009, which was particularly affected by the economic crisis combined with the inventory reduction movement, forms a favorable basis of comparison for the 1st half of the current year.
Sales by geographic zone
(EUR millions) H1 2010 % change % of % of
sales H1 2010 consolidated H1 consolidated
vs. H1 2009 2010 sales H1 2009
sales
Western Europe 782.7 + 7.8% 48% 53%
United States /
Canada 340.0 + 25.9% 21% 19%
Japan /
Australia 78.0 + 18.3% 5% 5%
Emerging 422.3 + 35.3% 26% 23%
countries
Total 1,623.0 + 18.1% 100% 100%
In the 1st half of 2010, the Group's sales in emerging countries grew + 35% compared with the 1st half of 2009 thanks to sound development in China , Eastern Europe, Brazil and India. In North America, where the recovery was significant, sales benefited from the US dollar's further appreciation against the euro.
(1) At comparable Group structure and exchange rates.
(2) Quarterly figures non-audited.
(3) Chiefly, divestment of Planchers Fabre (May 2009).
CURRENT OPERATING INCOME(4)(5)
(EUR millions) H1 2010 H1 2009 % Change % Comparable
change(6)
1st quarter 84.1 44.4 + 89.4% + 101.4%
Operating margin 11.2% 6.4%
2nd quarter 123.2 65.6 + 87.8% + 90.0%
Operating margin 14.1% 9.6%
1st half 207.3 110.0 + 88.4% + 94.6%
Operating margin 12.8% 8.0%
- High contribution of volumes
- Fixed costs and overheads kept under control
Current operating income totaled EUR207.3 million in the 1st half of 2010 (+ 88.4%). This growth takes into account an exchange rate impact of - EUR6.8 million (due in particular to the Brazilian real's appreciation against the euro and the US dollar). The net effect of changes in Group structure is not significant.
At comparable Group structure and exchange rates, current operating income increased by EUR104.1 million compared with the 1st half of 2009, thanks to the high contribution of sales volumes (+ EUR81.6 million). The product price and mix component was favorable (+ EUR14.7 million) and the Group recorded an overall decrease in variable costs (- EUR18.1 million) with lower energy bills in all four business groups. Overheads and fixed production costs remained under control, with the + EUR40.4 million increase from the 1st half of 2009 strictly due to the rise in production volumes and the related costs (personnel, maintenance).
At 12.8%, the Group's operating margin gained 4.8 points compared with the 1st half of 2009.
NET INCOME FROM CURRENT OPERATIONS(7)
The + 161.3% increase in net income from current operations, to EUR122. 0 million, resulted from the following factors:
- The sharp rise in current operating income;
- Financial expense of - EUR32.2 million (vs. - EUR44.9 million in the
1st half of 2009), including an exchange rate impact of + EUR2.1
million;
- A tax charge of - EUR50.8 million (- EUR18.7 million in the 1st half
of 2009), reflecting an effective taxation rate of 29.0% (28.7% in
the 1st half of 2009).
NET INCOME
The EUR107.4 million growth in the Group's share of net income to EUR119.1 million takes into account other income and expense, net of tax (- EUR2.9 million). The gross amount of other income and expense (- EUR2.5 million) particularly takes into account:
- Non-current financial income from the recording of a non-recurring
foreign exchange gain of + EUR10.2 million, following the restructuring
of the Group's American subsidiaries' financing;
- Depreciation expense for sites restoration: the review of
environmental situations of Group industrial sites led to an additional
long-term provision being booked for - EUR7.4 million.
(4) Operating income before other operating revenue and expenses.
(5) Quarterly figures: non audited.
(6) At comparable Group structure and exchange rates.
(7) Group's share of net income, before operating revenue and expenses.
CASH FLOW
EUR millions H1 2010 H1 2009
EBITDA 319.2 204.1
Current operating cash flow 259.0 172.6
Change in working capital (77.1) 93.4
Paid capital expenditure (56.5) (79.0)
Current free operating cash flow* 127.6 187.7
Financial expense (net of tax) (18.8) (27.3)
Other working capital items (1.8) 22.3
Current free cash flow 107.0 182.7
* including subsidies, value
of divested assets and misc. 2.2 0.7
- Tight management of working capital
- Substantial current free operating cash flow
Taking into account the + 18.1% rise in turnover compared with the same period in 2009, operating working capital increased by EUR77.1 million. Thanks to continued discipline in operating management, inventory only rose + 6%. Working capital represents 21.4% of annualized sales of the previous quarter. Excluding EUR76 million of factoring in trade receivables as on June 30, 2010, this ratio amounts to 23.6% (vs. 27.9% as on June 30, 2009).
Booked capital expenditure totaled EUR50.7 million in the 1st half of 2010. It represents 47% of depreciation expense(8) (vs. 63% in 1st half 2009) and mainly concerned maintenance of industrial assets.
STRONG FINANCIAL STRUCTURE
EUR millions June 30, 2010 December 31, June 30, 2009
2009
Paid dividends (76.0) (63.6) -
Net debt 990.1 964.3 1,148.2
Shareholders' equity 2,140.5 1,855.8 1,808.1
EBITDA 319.2 416.6 204.1
Net debt/
shareholders' equity 46.2% 52.0% 63.5%
Net debt / EBITDA 1.9x 2.3x 2.5x
Consolidated financial net debt remains below EUR1 billion as on June 30, 2010, thanks to the cash flows generated by the Group and despite the impact of the US dollar's appreciation on debt towards the end of the 1st half (currency translation effect on net financial debt). At EUR990.1 million, financial debt takes into account the EUR75.5 million in dividends paid out on May 11, plus EUR0.5 million in dividends paid to minority shareholders in subsidiaries. It is worth noting that in 2009 the dividend was paid out on July 7.
As on June 30, 2010, Imerys' financial resources totaled almost EUR2.3 billion with no significant repayment due before the end of 2012.
(8) Booked capital expenditure divided by fixed asset depreciation expense.
COMMENTARY BY BUSINESS GROUP
Minerals for Ceramics, Refractories, Abrasives & Foundry
(32% of consolidated sales)
(EUR millions) 1st half 1st half Current Comparable
2010 2009 change change (9)
Sales 536.6 383.2 + 40.1% + 38.4%
Current operating income (10) 66.9 13.8 + 385.9% + 402.1%
Operating margin 12.5% 3.6%
Booked capital expenditure 20.4 25.1 - 18.7%
As % of depreciation expense 63% 94%
- Faster sales growth in 2nd quarter, partly driven by inventory
rebuilding
- Good control of fixed production costs and overheads
Minerals for Refractories, Fused Minerals (particularly Abrasives) and Graphite markets, which had been worst hit by the 2009 global economic crisis, benefited from the upturn in end demand in the steel, industrial equipment and automotive sectors and from gradual inventory rebuilding that picked up speed in the second quarter.
Minerals for Ceramics markets only grew slightly, with no significant improvement seen in the construction sector in developed countries. Business is growing in emerging zones (North Africa, Middle East, Asia) where Imerys won new customers.
Several production lines that had been idled in 2008 and 2009 came back on stream during the first half. Manufacturing efficiency enabled all the business group's activities to serve demand growth effectively while maintaining good productivity. Over the first half, capital expenditure remained low.
Sales, at EUR536.6 million for the 1st half of 2010, rose + 40.1% compared with the 1st half of 2009 (which was - 35.7% down on 1st half 2008 ). Analysis of the change shows:
- A change in Group structure of - EUR0.6 million,
- An exchange rate effect of + EUR7.1 million.
The sharp upturn in demand in the Fused Minerals, Minerals for Refractories, Graphite and Carbon businesses and, to a lesser extent, in Minerals for Ceramics, explains the recovery in turnover, which is also driven by sales of higher value-added products.
Multiplied by 4 compared with the 1st half of 2009, current operating income, at EUR66.9 million, factors in a change in Group structure of + EUR0.6 million and an exchange rate effect of - EUR2.8 million.
At comparable Group structure and exchange rates, the very significant increase in sales volumes more than covers the limited rise in production costs (selective recruitment, use of agency workers). The product/mix component is favorable and variable costs are essentially in line with the previous year.
(9) At comparable Group structure and exchange rates.
(10) Operating income before operating revenue and expenses.
Performance & Filtration Minerals
(18% of consolidated sales)
(EUR millions) 1st half 1st half Current Comparable
2010 2009 change change(11)
Sales 300.4 246.3 + 22.0% + 18.5%
Current operating income(12) 34.8 9.1 + 280.9% + 250.2%
Operating margin 11.6% 3.7%
Booked capital expenditure 7.2 4.7 + 53.2%
As % of depreciation expense 34% 25%
- Stable markets overall with a significant inventory rebuilding effect
- Improved productivity in the United States
During the 1st half of 2010, the markets served by Performance and Filtration Minerals benefited from the significant effect of inventory rebuilding by customers and distributors.
Although the renovation sector held out well, the construction market remained slack in North America and Europe. Consumer goods markets ( beverages, personal care products, etc.) grew slightly.
The industrial optimization plan for Filtration Minerals in the United States enabled the activity to meet demand efficiently in the 1st half of 2010. Capital expenditure for the period mainly concerns maintenance operations.
Sales amounted to EUR300.4 million in the 1st half of 2010 (+ 22.0%). This increase factors in an exchange rate impact of + EUR8.7 million. At comparable Group structure and exchange rates, sales growth reflects the significant upturn in volumes, partly related to inventory rebuilding.
Current operating income totaled EUR34.8 million, up + EUR25.7 million. It takes into account a favorable currency translation effect of + EUR2.9 million. At comparable Group structure and exchange rates, the increase works out at + EUR22.8 million. The sharp rise in volumes came with an increase in fixed production costs and overheads.
Pigments for Paper
(22% of consolidated sales)
(EUR millions) 1st half 1st half Current Comparable
2010 2009 change change (11)
Sales 356.3 309.5 + 15.1% + 12.0%
Current operating income(12) 37.1 15.0 + 146.7% + 195.6%
Operating margin 10.4% 4.9%
Booked capital expenditure 18.9 11.6 + 62.9%
As % of depreciation expense 55% 45%
- Upturn in paper production in developed countries
- Start-up of a new plant in China
Global production of printing and writing paper, which recovered from late 2009, showed + 7% growth compared with the 1st half of 2009, which marked a low point. While business remains dynamic in emerging countries (+ 5%), the upturn is significant in mature countries (+ 8%), with distributors and printers rebuilding their paper inventory.
(11) At comparable Group structure and exchange rates.
(12) Operating income before other operating revenue and expenses.
The business group's strategic development continues in Asia, particularly in carbonates with the commissioning in the second quarter of a new plant in China (Yueyang, Hunan province), under a joint venture with the Tiger Forest & Paper group. This new precipitated calcium carbonate ( PCC) production unit is next to the new Yueyang Paper mill and has 90 KT annual capacity.
Sales, at EUR356.3 million in the 1st half of 2010, were up + 15.1% with a + EUR9.6 million foreign exchange effect. At comparable Group structure and exchange rates, growth mainly reflects the sharp rise in sales volumes relating to:
- The business group's extensive presence in Europe and North America,
where inventory rebuilding was more significant,
- Favorable currency trends (US dollar's appreciation vs. the euro),
benefiting European papermakers,
- The success of new products launched since 2009 (particularly the new
"Barrisurf" and "e-Type" American kaolin ranges),
- New capacities opened in India and China.
Current operating income totaled EUR37.1 million in the 1st half of 2010 (+ EUR22.1 million), taking into account a foreign exchange effect of - EUR7.4 million. At comparable Group structure and exchange rates, the business group's operating performance benefits from the increase in sales volumes, which came with good control of fixed costs and overheads.
Materials and Monolithics
(28% of consolidated sales)
(EUR millions) 1st half 1st half Current Comparable
2010 2009 change change(13)
Sales 451.4 443.4 + 1.8% + 0.6%
Current operating income(14) 92.4 84.3 + 9.6% + 9.6%
Operating margin 20.5% 19.0%
Booked capital expenditure 3.3 14.6 - 77.4%
As % of depreciation expense 18% 81%
- Positive signs in new housing in France
- Recovery in Monolithic Refractories
In France, advanced indicators for the construction sector (new housing sales, building permits) show more positive trends and now reflect a turnaround in new individual housing starts: down approximately - 15%(15) over 12 rolling months, they gained + 6% in the 2nd quarter compared with the same period the previous year.
After being particularly affected by adverse weather conditions in January and February, renovation picked up in the 2nd quarter but remained slightly down over the 1st half.
In that context, the clay products market, for the 1st half compared with the same period last year, posted a - 8%(16) decrease in volumes for roofing items but a + 9 %(16) increase for bricks, thanks to the gradual replacement of concrete.
Monolithic Refractories markets benefited from the strong upturn in steelmaking. Other consumption segments (cement, incineration, petrochemicals, etc.), which were less affected by the economic crisis, improved slightly. They benefited from the resumption of maintenance operations, with the number of orders related to new furnace construction projects remaining limited.
(13) At comparable Group structure and exchange rates.
(14) Operating income before other operating revenue and expenses.
(15) Source: new individual housing starts - French Ministry of Ecology , Energy, Sustainable Development and Sea.
(16) FFTB, French Federation of roof tiles and bricks - temporary data.
In Building Materials, productivity capital projects resumed with the modernization of two brick manufacturing lines in Colomiers (Haute-Garonne, France) and La Boissiere du Dore (Loire-Atlantique, France). Moreover, the Cuntis, Spain, Kiln Furniture plant closed and its production was transferred to the Hungarian site.
The business group's sales increased + 1.8% compared with the 1st half of 2009, at EUR451.4 million. This includes:
- A change in Group structure (17) of - EUR5.4 million,
- An exchange rate impact of + EUR10.7 million.
At comparable Group structure and exchange rates, the upturn observed in Monolithic Refractories offset lower sales volumes in Building Materials.
Current operating income was EUR92.4 million, (+ EUR8.1 million vs. 1st half 2009). The change in Group structure (- EUR0.5 million) balanced out exchange rate impact (+ EUR0.5 million). At comparable Group structure and exchange rates, strict cost management offset the lower contribution of Building Materials.
Availability of information
The present press release is available on the Group's website http://www.imerys.com, and can be consulted from the home page in the "Press Releases" section.
Today at 2 pm (CET), Imerys is holding a teleconference at which the results for the 1st half of 2010 will be commented on. This conference will be webcast live on the Group's internet site, http://www.imerys.com.
Financial communication diary
- 3rd quarter results 2010: November 3.
This date is given for guidance only and may be updated on the Group's website at the address http://www.imerys.com, in the Investors & Analysts / Financial Agenda section.
The world leader in adding value to minerals, Imerys is active in 47 countries through more than 240 industrial and commercial sites. The Group achieved EUR2.8 billion in sales in 2009. 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.
More comprehensive information about Imerys may be obtained from its Internet website (www.imerys.com) under Regulated Information, particularly in its Document de Reference filed with Autorite des marches financiers on April 1, 2010 under number D.10-0205 (also available from the Autorite des marches financiers website, www.amf-france.org). Imerys draws the attention of investors to chapter 4, "Risk Factors", of its Document de Reference.
Warning on projections and forward-looking statements: This document contains projections and other forward-looking statements. Investors are cautioned that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.
(17) Divestment of Planchers Fabre (May 2009).
1st HALF 2010 RESULTS
Appendix
1. Consolidated sales breakdown
Change in consolidated sales % % % %
Group exchange comparable
current structure rate change(1)
change effect effect
Imerys Group +18.1% - 0.4% +2.5% +16.0%
Quarterly change at comparable Group Q1 2010 Q2 2010
structure and exchange rates 2010 vs.
2009
+ 9.5% + 22.7%
2009 vs. 2008 (reminder) Q1 2009 Q2 2009 Q3 2009 Q4 2009
- 23.8% - 26.0 % - 20.9% - 7.6%
(non-audited, EUR % % % %
millions) Group exchange comparable
1st 1st current structure rate change(1)
quarter quarter change effect effect
2010 2009
Sales, of which: 751.6 694.3 + 8.2% - 0.7% - 0.6% + 9.5%
Minerals for
Ceramics,
Refractories,
Abrasives &
Foundry 244.6 193.0 + 26.6% - 0.1% - 1.9% + 28.6%
Performance &
Filtration
Minerals 137.6 118.5 + 16.2% - 0.9% - 2.7% + 19.8%
Pigments for
Paper 167.4 158.7 + 5.5% - - 1.6% + 7.1%
Materials &
Monolithics 212.1 228.9 - 7.4% - 1.6% + 2.6% - 8.4%
Holding company & (10.1) (4.8) n.s. n.s. n.s. n.s.
eliminations
(non-audited, EUR % % % %
millions) Group exchange comparable
2nd 2nd current structure rate change(1)
quarter quarter change effect effect
2010 2009
Sales, of which: 871.4 679.7 + 28.2% - 0.2% + 5.7 % + 22.7 %
Minerals for
Ceramics,
Refractories,
Abrasives &
Foundry 292.0 190.2 + 53.8% - 0.1% + 5.7% + 48.2%
Performance &
Filtration
Minerals 162.8 127.7 + 27.4% + 0.8% + 9.4% + 17.2%
Pigments for
Paper 188.9 150.8 +25.2% - + 8.0% + 17.2%
Materials &
Monolithics 239.3 214.4 + 11.5% - 0.9% + 2.2% + 10.2%
Holding company &
eliminations (11.6) (3.6) n.s. n.s. n.s. n.s.
(1) Change at comparable Group structure and exchange rates.
(EUR millions) % % % %
Group exchange comparable
1st 1st Current structure rate change (2)
half half change effect effect
2010 2009
Sales, of which: 1,623.0 1,374.0 + 18.1% - 0.4 % + 2.5% + 16.0%
Minerals for
Ceramics,
Refractories,
Abrasives & Foundry 536.6 383.2 + 40.1% - 0.1% + 1.8% + 38.4%
Performance &
Filtration Minerals 300.4 246.3 + 22.0% - + 3.5% + 18.5%
Pigments for Paper 356.3 309.5 + 15.1% - + 3.1% + 12.0%
Materials &
Monolithics 451.4 443.4 + 1.8% - 1.2% + 2.4% + 0.6%
Holding company & (21.7) (8.4) n.s. n.s. n.s. n.s.
eliminations
start_table>
Sales by business group H1 2010 H1 2009
Minerals for Ceramics, Refractories, Abrasives &
Foundry 32% 27%
Performance & Filtration Minerals 18% 18%
Pigments for Paper 22% 23%
Materials & Monolithics 28% 32%
Total 100% 100%
2. Key figures
(EUR millions) Q2 2010 Q2 2009 Change H1 2010 H1 2009 Change
Sales 871.4 679.7 + 28.2% 1,623.0 1,374.0 + 18.1%
Current operating income
(3) 123.2 65.6 + 87.8% 207.3 110.0 + 88.4%
Current financial income
(expense)(4) (12.3) (20.9) (32.2) (44.9)
Current taxes (32.8) (13.0) (50.8) (18.7)
Minority interests (1.1) 0.4 (2.3) 0.3
Net income from current
operations(5) 77.0 32.1 + 140.0% 122.0 46.7 + 161.3%
Other operating revenue
and expenses, net (2.8) (13.8) (2.9) (35.0)
Net income(5) 74.2 18.3 n.a. 119.1 11.7 n.a.
(2) Change at comparable Group structure and exchange rates.
(3) Operating income before other operating revenue and expenses, including share of joint operations.
(4) A foreign exchange gain of + EUR10.2 million realized in the 1st half of 2010 as a consequence of a restructuring of financings of businesses in US Dollar presents a non-recurring and significant character. This foreign exchange gain is classified in "Other net operating revenue and expenses, Group share" (that measures the recurring performance of the Group) so as to stress its non-recurring and significant character. The current financial income (loss) included in the "Net income from current operations, Group share" thus amounts to - EUR32.2 million.
(5) Group's share.
APPENDIX Imerys - Summary financial statements to June 30, 2010
CONSOLIDATED INCOME STATEMENT
(EUR millions) 06.30.2010 06.30.2009 2009
Revenue 1,623.0 1,374.0 2,773.7
Current revenue and expenses (1,415.7) (1,264.0) (2,524.8)
Raw materials and consumables used (571.5) (530.5) (1,026.1)
External expenses (396.3) (322.6) (674.9)
Staff expenses (312.7) (296.0) (587.1)
Taxes and duties (21.7) (24.1) (42.6)
Amortization, depreciation and impairment
losses (107.3) (90.5) (181.4)
Other current revenue and expenses (7.3) (1.2) (12.6)
Share in net income of associates 1.1 0.9 (0.1)
Current operating income 207.3 110.0 248.9
Other operating revenue and expenses (12.7) (46.6) (87.1)
Gain or loss from obtaining or losing
control (1.1) 11.2 11.3
Other non-recurring items (11.6) (57.8) (98.4)
Operating income 194.6 63.4 161.8
Net financial debt expense (29.2) (35.4) (69.1)
Income from securities 1.2 0.9 2.2
Gross financial debt expense (30.4) (36.3) (71.3)
Other financial revenue and expenses 7.2 (9.5) (14.3)
Other financial revenue 82.2 58.1 121.1
Other financial expenses (75.0) (67.6) (135.4)
Financial income (loss) (22.0) (44.9) (83.4)
Income taxes (51.2) (7.1) (37.1)
Net income 121.4 11.4 41.3
Net income, Group share 119.1 11.7 41.3
Net income, share of non-controlling
interests 2.3 (0.3) -
Net income, Group share 119.1 11.7 41.3
Net income from current operations,
Group share 122.0 46.7 119.3
Other net operating revenue and
expenses, Group share (2.9) (35.0) (78.0)
Net basic earnings per share from current
operations (in EUR) 1.62 0.68 1.66
Net basic earnings per share (in EUR) 1.58 0.17 0.57
Diluted net earnings per share (in EUR) 1.58 0.17 0.57
Average exchange rate euro/USD 1.3281 1.3326 1.3945
Imerys - Summary financial statements to June 30, 2010
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(EUR millions) 06.30.2010 06.30.2009 2009
Non-current assets 2,939.4 2,817.2 2,740.5
Goodwill 977.6 907.1 897.5
Intangible assets 43.3 45.5 43.8
Mining assets 414.5 396.9 377.2
Property, plant and equipment 1,287.0 1,269.2 1,224.1
Investments in associates 53.6 54.6 50.0
Available-for-sale financial assets 7.0 7.0 7.5
Other financial assets 25.6 15.1 23.2
Other receivables 49.5 43.1 43.7
Derivative financial assets 29.0 18.3 17.6
Deferred tax assets 52.3 60.4 55.9
Current assets 1,446.7 1,297.7 1,190.8
Inventories 516.1 489.4 440.5
Trade receivables 500.0 490.4 364.4
Other receivables 139.6 125.3 110.7
Derivative financial assets 5.0 4.5 5.0
Marketable securities and other financial assets 6.9 4.4 5.6
Cash and cash equivalents 279.1 183.7 264.6
Consolidated assets 4,386.1 4,114.9 3,931.3
Equity, Group share 2,114.9 1,789.4 1,836.9
Capital 151.1 150.7 150.8
Premiums 342.4 339.2 339.4
Reserves 1,502.3 1,287.8 1,305.4
Net income, Group share 119.1 11.7 41.3
Equity, share of non-controlling interests 25.6 18.7 18.9
Equity 2,140.5 1,808.1 1,855.8
Non-current liabilities 1,409.0 1,438.1 1,388.9
Provisions for employee benefits 102.6 134.7 103.9
Other provisions 183.2 163.0 157.7
Loans and financial debts 1,033.3 1,042.8 1,037.7
Other debts 10.2 10.0 9.5
Derivative financial liabilities 20.0 19.7 16.5
Deferred tax liabilities 59.7 67.9 63.6
Current liabilities 836.6 868.7 686.6
Other provisions 17.1 26.0 18.6
Trade payables 328.1 264.2 260.7
Income taxes payable 18.7 24.7 20.6
Other debts 219.0 249.5 185.7
Derivative financial liabilities 2.3 11.5 2.9
Loans and financial debts 246.1 289.3 186.0
Bank overdrafts 5.3 3.5 12.1
Consolidated equity and liabilities 4,386.1 4,114.9 3,931.3
Net financial debt 990.1 1,148.2 964.3
Closing exchange rate euro/USD 1.2271 1.4134 1.4406
Imerys - Summary financial statements to June 30, 2010
CONSOLIDATED STATEMENT OF CASH FLOW
(EUR millions) 06.30.2010 06.30.2009 2009
Cash flow from operating activities 139.6 221.2 520.5
Cash flow generated by current operations 228.4 285.0 657.3
Interests paid (48.5) (51.2) (67.2)
Income taxes on current operating income and
financial income (loss) (34.9) 5.4 (26.1)
Dividends received from available-for-sale
financial assets 0.1 0.3 0.4
Cash flow generated by other operating
revenue and expenses (5.5) (18.3) (43.9)
Cash flow from investing activities (50.5) (66.7) (115.5)
Acquisitions of intangible assets and
property, plant and equipment (56.4) (79.0) (138.4)
Acquisitions of investments in consolidated
entities after deduction of cash acquired 0.3 (9.9) (10.9)
Disposals of intangible assets and property,
plant and equipment 3.1 7.8 18.8
Disposals of investments in consolidated
entities after deduction of cash 0.8 14.3 14.2
disposed of
Disposals of available-for-sale financial assets - (0.1) 0.1
Net change in financial assets 0.7 (0.2) (1.2)
Paid-in interests 1.0 0.4 1.9
Cash flow from financing activities (88.5) (185.1) (365.7)
Capital increases 4.8 248.5 249.0
Disposals (acquisitions) of treasury shares (5.1) - -
Dividends paid to shareholders (75.5) - (62.8)
Dividends paid to non-controlling interests (0.5) (0.7) (0.8)
Loan issues 77.2 8.9 8.2
Loan repayments (18.2) (332.0) (402.4)
Net change in other debts (71.2) (109.8) (156.9)
Change in cash and cash equivalents 0.6 (30.6) 39.3
---------------------------------
Analyst/Investor Relations:
Pascale Arnaud - +33-(0)1-49-55-63-23, [email protected]
Press contacts:
Pascale Arnaud - +33-(0)1-49-55-63-91/66-55
Matthieu Roquet-Montegon - +33-(0)6-16-92-80-65
Imerys
SOURCE Imerys
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