Volume 37, Issue 12, December 2002

FinancialFlash

Saint-Gobain Says Consolidated Sales for first Nine Months Up 0.6 Percent

French glass maker Saint-Gobain Group has reported that its sales for the first nine months of 2002 totaled 22,927 million Euros (approximately $23,115,189.41 USD), compared to those in 2001 of 22,932 million Euros (approximately $23,119,275.40 USD).

According to Saint-Gobain, based on a comparable group structure, sales dropped 1.4 percent in Euros and rose 0.6 percent in local currencies. The company also reported that resilient prices boosted sales by 0.9 percent, offsetting a 0.3-percent negative impact of slightly lower volumes.

Specifically, the company’s glass sector achieved the strongest growth in like-for-like business sales, reported Saint-Gobain. Flat glass division operations in Europe and the reinforcements division were affected by low sales prices, but volumes increased in the third quarter. Flat glass sales were reported to be $3,308 million Euros (approximately $3,335,014.96 USD) compared to 
$3,323 million Euros (approximately $3,350,292.58 USD) in 2001.

Geographically, the company reported that both insulation and building materials sales were strong in the United States. The high-performance materials sector and the reinforcements division also saw high sales volumes in the United States in the third quarter. 

Solutia Announces Completion of Extension of Credit Facility
St. Louis-based Solutia Inc. announced that it has reached agreement in principle with its banks to extend the maturity of its revolving credit facility until August 2004 and reducing the facility from $800 million to $600 million. The agreement will result in the release of $200 million placed in escrow.

“We are pleased to have reached agreement with our lenders. The extended credit facility will give us the financial flexibility we need to continue to manage our businesses for healthy returns to our investors,” said Solutia’s chief financial officer, Robert A. Clausen. “Solutia’s businesses remain strong and are showing encouraging signs of improvement. This will allow us to reduce our debt and deliver improved cash flows and stronger earnings,” he said.

LBL Files Notice of Bankruptcy Intention
LBL Skysystems of Bois-Des-Filion, Quebec, has announced the lay-off of 67 employees as of November 12, 2002, as well as filing of a notice of intention to make a proposal to its creditors under the Bankruptcy and Insolvency Act. LBL says it is hoping to sell its assets to a new company, which would allow its activities to continue and also retain the employment of its employees.

In addition, LBL announced that the Laurentian Bank has appointed an interim receiver to ensure control of LBL Skysystems’ (USA) assets that are subject to the bank’s secured rights. LBL Skysystems (USA) is a subsidiary of LBL that has guaranteed its obligations to the Laurentian Bank, according to the company. 


USG

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