Saft Groupe SA Reports Fourth Quarter and Full Year 2007 Sal
PARIS, February 7 /PRNewswire-FirstCall/ -- Saft, leader in the design, development and manufacture of high-end batteries for industry and defence, announces its sales for the fourth quarter and the year ended 31 December 2007.
Sales highlights - Full year 2007 sales of EUR 600.5m: - Up 10.7% compared with FY 2006 at constant exchange rates (+7.2% at actual exchange rates); - Above guidance despite average exchange rate of EUR1 = $1.37 (compared with original guidance of EUR 580m - EUR 600m at EUR1 = $1.26); - Full year 2007 sales per division (at constant exchange rates); - IBG +21.7% - SBG +1.5% - RBS +5.2% - Q4 2007 sales of EUR159.8m, up 12.5% compared with Q4 2006 (at constant exchange rates): - IBG +31.3% - SBG -0.2% - RBS -3.2%
John Searle, Chairman of the Management Board, commented:
"I am delighted that we have delivered sales growth of over 10% in 2007 (at constant rates) and achieved the top of our original sales guidance. This is despite an adverse currency effect from the weakening US$, resulting in reported sales growth of 7.2%. We estimate that approximately 5-6% of the sales growth was due to pricing, demonstrating our success in passing on the increased nickel costs. Volume growth of approximately 5% was above our medium term expectations, and a creditable performance when also increasing prices.
The strong sales performance has helped to compensate for the adverse currency effect from the weakening US$. I therefore expect to be able to announce that Saft has met its EBITDA(1) and EBIT(2) guidance for 2007, when our full results are announced on 13th March, although at the bottom end of the respective ranges.
IBG has had an exceptional year, achieving sales growth of 21.7% at constant exchange rates. This includes volume growth of 15%, of which approximately half is due to additional business with AT&T. This sales growth has increased steadily throughout 2007 as the nickel-related price increases have taken effect, such that the nickel cost is currently being fully recovered. We have also extended our nickel hedging of IBG''s order backlog in H1 2008. This ensures that IBG''s purchase price cannot exceed $35k per tonne on approximately 60% of its nickel purchases in H1 2008, which is broadly in line with IBG''s current pricing for new orders.
SBG has had a relatively disappointing year, with growth of only 1.5% at constant rates. Despite strong growth in Civil Lithium and Satellites, SBG has suffered from:
- A continued fall in sales to the US Army, which is still over-stocked and therefore in no hurry to re-bid the largest of our contracts, which has expired.
- The effects of the small fire at Poitiers, which disrupted sales and production in the last 4 months of 2007, although everything is now back to normal.
With sales growth of 5.2% at constant exchange rates, the RBS division has performed better than expected, as the benefits of increased pricing have exceeded the associated volume losses.
Lastly, the progress of our Johnson Controls-Saft joint venture continues to be encouraging with new business in China (a Ni-MH production contract with Chery and a Li-ion development contract with SAIC) to add to the production contract with Daimler to supply Li-ion batteries for the Mercedes S-Class Hybrid 400, and a number of other development contracts. In addition, at the inauguration of the new Li-ion production facility at Nersac on 31st January, we announced another production contract for Li-ion batteries for a hybrid vehicle for a European car manufacturer. The drivers for growth in the hybrid vehicle market are becoming more compelling and JC-S is demonstrating that it is a technology leader and well-positioned to win a significant share of this opportunity."
Turnover(EUR millions, under IFRS) Fourth quarter Period Q4 2007 Q4 2006 Growth / decline Exchange rate Actual 2007 Actual 2006 at actual at constant exchange rates exchange rates IBG 77.8 61.6 26.3% 31.3% SBG 61.8 65.2 (5.2%) (0.2%) RBS 20.2 21.4 (5.6%) (3.2%) Total 159.8 148.2 7.8% 12.5%
The average exchange rate in Q4 2007 was EUR1 to $1.45 (compared with EUR1 to $1.29 in Q4 2006).
There was no change in perimeter between Q4 2006 and Q4 2007.
Q4 2007 sales of EUR 159.8m were up 7.8% as reported and up 12.5% at constant exchange rates, compared with Q4 2006.
Year ended 31 December 2007 Period FY 2007 FY 2006 Growth / decline Exchange rate Actual 2007 Actual 2006 at actual at constant exchange rates exchange rates IBG 282.4 238.7 18.3% 21.7% SBG 234.7 240.5 (2.4%) 1.5% RBS 83.4 81.0 3.0% 5.2% Total 600.5 560.2 7.2% 10.7%
The average exchange rate in 2007 was EUR1 to $1.37 (compared with EUR1 to $1.26 in 2006).
There was no change in perimeter between 2006 and 2007.
Sales for the year ended 31 December 2007 of EUR 600.5m were up 7.2% as reported and up 10.7% at constant exchange rates, compared with 2006.
Industrial Battery Group
In the fourth quarter, IBG sales increased by 26.3% as reported to EUR 77.8m, and by 31.3% at constant exchange rates, compared with Q4 2006.
For the full year 2007, IBG sales increased by 18.3% as reported to EUR 282.4m, and by 18.3% at constant exchange rates, compared with 2006.