CORPORATE NEWS
AIR LIQUIDE reported group revenue +13.2% to €6.370 mn for the first half 2008 year on year with double-digit growth in diluted EPS +10.6% Including Gas & Services, Group revenue rose +8.8% to € 5.343 mn and operating income recurring +11% to € 950mn. The Group’s growth resulted from a combination of strong demand for hydrogen and ramp-ups of new units in large industries in Europe and Asia, very good progress in industrial merchant, a vibrant healthcare business and sustained sales in electronics following several quarters of outstanding growth. Net profit grew +8% (excluding currency +11.3%) to € 601 mn.
Group BOUYGUES posted consolidated sales +15% to € 15.3bn for first-half 2008 year on year or +13% like-for-like and at constant exchange rates. Per branch , Bouygues Immobilier (real estate) sales grew the fastest + 61% to € 1.299mn due to the high level of reservations in the past two years with sales of the commercial property business increasing threefold and residential property sales rising + 27%. Bouygues Construction sales rose + 20% (+11% in France and +33% abroad), to € 4.448mn with all businesses contributing to the sharp increase. Like-for-like and at constant exchange rates, sales grew + 18%. Colas sales rose +14% to € 5.609mn due to a favorable environment in most of its markets. Like-for-like and at constant exchange rates, sales climbed + 10%.TF1 (television channel) sales fell - 5% to € 1.352mn while Bouygues Telecom sales climbed + 7% to € 2.457mn. Sales from network totaled € 2.295 mn , up +5.5% on the first half of 2007 and in one year, the Telecom branch acquired 522 000 new contract customers, up +8.1%. At 30 June 2008, Bouygues Telecom totaled 9 318 000 customers, including 6 959 000 contract customers (74.7% of its customer base, up 1.6 points year-on-year)
PERNOD RICARD announced sales up +2.3% to € 6.589 mn for first-half 2008 year on year as a direct result of 8.7% organic growth, a strong foreign exchange impact -4.6% primarily due to the depreciation of the US dollar and a -1.6% Group structure impact. The 15 strategic brands recorded significant growth +11% in value and +5% in volume with ten of these brands reporting double-digit growth rates: Martell +24%, Jameson +21%, Mumm +18%, Havana Club +17%, The Glenlivet +14%, Perrier Jouët +14%, Stolichnaya +12%, Chivas +11%, Ballantine’s +11% and Malibu +10%. Fourth quarter consolidated sales totalled € 1.498 mn, down - 3%, (+7% organic growth with a foreign exchange impact -8%, and Group structure impact -2%). The year 2007/08 was also marked by the acquisition of the Vin & Sprit Group, owner of the ABSOLUT brand. The transaction closed on 23 July 2008. ABSOLUT (world leader in premium vodkas) recorded excellent performances, illustrated by its accelerated growth in the first half of 2008 (+12% compared to +9% in the calendar year 2007) and a volume of 11.3 million 9-litre cases sold over the 12 months period ending 30 June 2008 (+600,000 9-litre cases compared to calendar year 2007)
AIR FRANCE-KLM July 2008 passenger traffic grew +1.8% with capacity up +3.9% and a load factor at 84.4% or -1.8 points. The group carried 7.1 million passengers (-0.3%) On the Americas network, traffic rose + 4.2% with capacity up + 5.2% and the load factor was maintained at the high level of 88.4% (-0.9 points).On the Africa and Middle East network, traffic increased +3.1% with capacity up by 2.2%. The load factor gained 0.7 points to 85.9%. The Asia network saw a +2.1% rise in traffic with capacity up by 5.5%. The load factor declined by 2.8 points but was still at the high level of 87.1%.On the European network, traffic declined slightly -0.4% with capacity up + 2.6%. The load factor fell 2.3 points to 75.8%. Cargo traffic declined -4.1% with capacity up 1.0% and was primarily impacted by Asia, in particular the Olympic Games in China. The load factor declined 3.3 points to 62.1%
GDF- SUEZ announced that residential electricity and gas prices will increase respectively +2% and +5% effective August 15th. Household gas prices have already climbed +15.46% since January and +46% since 2005
Group LAFARGE reported first half 2008 sales up +8% to €9.069 mn (+14% at constant exchange rate ) and current operating income +18% to €1.611 m, (+ 24% at constant exchange rate) Operating margin increased substantially to 17.8% from 16.2% in 2007 and net income Group share rose +15% to €773 bn excluding one-off items (excluding the impact in 2007 of the disposal of the Roofing business and the Cement and Aggregates & Concrete operations in Central Anatolia, Turkey, and in 2008 the disposal of the Lafarge Titan joint venture in Egypt and the Gypsum provision adjustment). Net earnings per share rose +4% to €4.03 excluding one-off items. Second quarter sales rose +8% to €5.069 mn, up 15% at constant exchange rate with current operating income +8% to €1.099 million, (+14% at constant exchange rate). Net income Group share rose + 9% to €623 bn excluding one-off items while net earnings per share declined - 2% to €3.24 excluding one-off items. Emerging markets accounted for 67% of earnings in the Group’s Cement business in the first half of the year, and 62% in the second quarter. The Cement business recorded strong earnings growth, with sales +15% in the first half and +14% in the second quarter (+10% at constant scope and exchange rates in the first half and second quarter).In Aggregates and concrete, sales fell -2% and -1% respectively (flat at constant scope and exchange rates in the first half and the 2nd quarter). In the United States, market conditions were still very difficult due to the downturn in the housing market and sales of Gypsum fell -3% in the first half of the year and -2% in the second quarter (+2% and +4%)
Over 3000 SNCF passengers were left stranded in six TGV trains in the South East region (Bouche du Rhône) on August 17th due to a broken cable which paralyzed traffic for up to ten hours. SNCF apologized to its customers and announced that train tickets will be fully reimbursed.
Ten French paratroopers were killed in an ambush led by Talibans in Afghanistan, the heaviest loss ever recorded by the French army in the region. President Nicolas SARKOZY paid tribute to the fallen in a moving ceremony at les Invalides in Paris
The Euro area trade balance first estimate with the rest of the world in JUNE recorded €0.1 billion deficit (€ +7.5 bn last year) according to Eurostat. In May 2008, balance was €-3.9 bn, compared with €+1.2 bn a year ago. In June 2008 compared with May 2008, seasonally adjusted exports rose +1.4% and imports +2.9%. The first estimate for the June 2008 extra-EU trade balance was a deficit of €20.1 bn, compared with €-9.1 bn in June 2007. In May 2008, the balance was €-21.3 bn, compared with €-15.0 bn in May 2007. In June 2008 compared with May 2008, seasonally adjusted exports rose + 0.5% and imports +2.7%
Following Georgia's military intervention in South Ossetia on August 7th, war errupted with Russia as Russian troops were massively sent into the region. The European Union announced that a GEORGIA peace plan was agreed with RUSSIA following a cease fire in the region of South Ossetia in which each party had accepted to withdraw troops to their original positions prior to the beginning of the war. The peace plan, proposed by President Nicolas SARKOZY and Foreign and European Affairs Minister Bernard KOUCHNER, on behalf of the EU, led to tight negotiations to end the conflict. The Commission further announced a fast track €1 million aid to cover the urgent humanitarian needs of civilians affected by the war. The financial support will cover emergency medical assistance, water and sanitation, food, non-foods items like blankets, clothes, kitchen-sets, emergency shelter and protection. United Nations agencies reported that over 158,000 people have been uprooted as a result of the conflict, with some having fled to other parts of Georgia while others moved to North Ossetia in Russia. Two cargo aircraft chartered by the UN World Food Programme set off for Georgia’s capital,Tbilisi, with emergency food packages for the displaced. On August 18th, deadline set for the offical pull back of Russian troops, contradictory media reports described the conflict as worsening as troops withdrawl had not materialized. Troops pulled out in part on August 19th as international pressure mounted over Russia and included exclusion from a NATO military exercice
Nobel Peace Prize DALAI LAMA arrived in France for a 15 day spiritual trip and is due to inaugurate several temples. The Dalai Lama confirmed that he will meet with President Nicolas SARKOZY in December on his next visit to France
FRANCE's GDP dipped -0.3% in the second quarter impacted by a domino effect involving a decline in household consumption -0.1% along with capital investments -1.5% and exports -1.7% In the Euro area GDP fell -0.2% and -0.1% in the EU 27 according to a Eurostat first estimate (in Q1 +0.7% in each region). Germany’s declined -0.5% and Italy’s -0.3% Compared with the first quarter of 2007, seasonally adjusted GDP rose +1.5% in the Euro area and +1.7% in the EU 27. In the US, GDP increased + 0.5% in Q2/08 (+0.2% in Q1/08) In Japan GDP increased respectively +0.6% after +0.8%). Compared with the same quarter of the previous year, GDP rose + 1.8% in the US (+2.5% in the previous quarter) and + 1% in Japan (+1.2% in the previous quarter) In March, the OECD’s forecast for France’s GDP was at 0.4% for each Q1 and Q2 and revised down. The OECD short-term forecasting models had foreseen no growth in the US on the same period, and had forecasted Germany’s GDP to be at 0.6% in Q1 and 0.4% in Q2
Following France's negative GDP in Q2/08 Prime Minister, François FILLON designated Mrs Christine LAGARDE, finance minister to prepare discussions with Euro area members for the upcoming September EcoFIn meeting in Nice to find joint solutions to the current economic crisis. In Spain, where GDP remained nearly stable or 0.1% in the second quarter of this year, government injected € 20bn into national accounts so as to push up the economy while Germany (GDP -0.5% in Q2) is planning economic measures to encourage household consumption
BARLEY 2008 harvesting in France (winter and spring) is expected at an exceptional 12Mt, up +2.3 Mt compared with last year according to ONIGC figures. Winter barley protein levels, between 9.5% and 11%, were deemed extremely satisfactory. Hard wheat production is expected +14% compared with last year, and harvesting is expected over 2,2 Mt, in excess of 200 000 tons. Soft wheat output is also forecasted up at 37Mt, one of the best harvesting season ever recorded in the last ten years (in 2004 with 37.6Mt and in 1998 with 38.2 Mt)
