COURBEVOIE (dpa-AFX) - Saint-Gobain (CODGF.PK) on Wednesday said its net income for fiscal year 2014 surged 60 percent to 953 million euros from 595 million euros last year as the French building materials company shored up its operating margins and cut other expenses as well.
The company said its earnings on a per share basis in 2014 rose to 1.70 euros from 1.08 euros a year ago.
Recurring income in 2014 increased 7.4 percent to 1.1 billion euros from 1.03 billion euros a year ago.
Meanwhile the company's sales in 2014 slid 1.7 percent to 41.05 billion euros from 41.76 billion euros in the prior year.
Growth was hurt by the 1.5 percent currency impact and the 2.4 percent impact from changes in Group structure, chiefly related to the disposal of Verallia North America, the company said.
Among regions, sales in France in 2014 slid 1.3 percent from last year and North America dropped 14.6 percent. Other Western European countries gained 2.5 percent, and emerging countries and Asia rose 0.6 percent.
On a like for like basis, the company's sales in 2014 were up 2.2 percent.
Pierre-André de Chalendar, CEO of Saint-Gobain, said the results were despite a tough macroeconomic climate in France and uncertainty in Germany, while other regions reported good growth and the company continued with cost cuts.
The company said that volumes moved up 1.1 percent despite some drop in the second half. Sales prices rose 1.1 percent in spite of a less inflationary environment and declining prices for Exterior Products in the US in the second half.
Saint-Gobain benefited from an improvement in operating margin to 6.8 percent from 6.6 percent last year. Further, non-operating costs dropped 61 percent to 190 million euros and net financial expense was lower by 12 percent at 696 million euros.
During the year, Saint-Gobain embarked on a reorganization of its business portfolio, with the plan to acquire a controlling interest in Sika and the launch of a competitive bidding process for the sale of Verallia.
For the fourth quarter, Saint-Gobain said its sales fell 1.4 percent from a year ago to 10.24 billion euros. On a like for like basis, sales for the quarter were up 1.3 percent.
Saint-Gobain said its board has decided to recommend to the June 4 shareholders' meeting a dividend of 1.24 euros per share, 50 percent payable in cash and the remainder in cash or in shares, at shareholders' discretion.
The company said it would continue to focus on high value-added, asset-light activities and expand footprint in emerging countries.
In 2015, Saint-Gobain hopes to benefit from continued upbeat trading in the US as well as in Asia and emerging markets, while Western Europe will be dampened by the decline in France.
The company expects capital expenditure of under 1.6 billion euros in 2015, with focus outside Western Europe.
'In this setting, the Group is targeting a further like-for-like improvement in operating income for 2015 and a continuing high level of free cash flow,' Saint-Gobain said.
Copyright RTT News/dpa-AFX