PR Newswire/Les Echos/
Press release
N°59-09
Saft Groupe SA reports Quarterly Financial Information for the third quarter
of 2009
Paris, 2nd November 2009 - Saft, leader in the design, development and
manufacture of advanced batteries for industry and defence, announces its
sales for the third quarter of 2009.
Main highlights
· Q3 2009 sales were EUR123.2m, an 11.9% reduction YoY as reported, and a 13.2%
reduction at constant exchange rates.
· Sales reduction in Q3 was stable compared with Q2.
· YTD end September sales were EUR410.6m, down by 8.0% YoY at current exchange
rates and down 10.9% YoY at constant exchange rates.
· The company believes the negative effect of customer destocking has started
to decline.
· FY 2009 sales guidance of (7) to (10)% at constant exchange rates is
maintained. Year end sales are likely to be towards the bottom of this
guidance.
· EBITDA guidance maintained at a minimum of 18% of sales, excluding costs
related to the Jacksonville investment project, estimated at $1.5m in Q4 2009.
John Searle, Chairman of the Management Board, said:
"Challenging market conditions seen in H1 continued into Q3. However, white Saft
has not seen a recovely in overall demand during the quarter, I do believe that
we have reached, or are close to, the lowest point in the demand cycle.
Activities the most impacted during have performed slightly better during the
lest quarter and I believe that aggressive customer destocking is past its
worst.
Anticipating an improving Q4 performance, I can confirm that our sales
guidance for the full year remains unchanged, although sales are likely to be
towards the bottom of the revised range advised in July. In addition, I can
confirm that we expect year-end profitability to be in line with previous
guidance.
More strategically, Saft remains very focussed on its exciting medium
term growth prospects, with high performance Li-ion batteries and is delighted
that its projects have been chosen by the US Government to receive grants to
build new factories in North America. These investments will have a major impact
on Saft's medium term growth and give Johnson Controls-Saft potentiel production
capacity in the US to meet the needs of Ford and I hope other
customers."
TURNOVER (EUR millions, under IFRS)
Third quarter
Period Q3 2009 Q3 2008 Growth / decline
Exchange rate Actual 2009 Actual 2008 at actual at constant
exchange rates exchange rates
IBG * 70.1 84.9 (17.4)% (18.4)%
IBG excl. RBS* 55.7 67.0 (16.9)% (18.2)%
Former RBS * 14.4 17.9 (19.5)% (19.5)%
SBG 53.1 55.0 (3.4)% (5.0)%
Total 123.2 139.9 (11.9)% (13.2)%
* Effective from 1st July 2009, the IBG and RBS Divisions have been merged into
an enlarged IBG Division. For comparison, figures for the activities under
the earlier perimeter have been given.
The average exchange rate in Q3 2009 was EUR1 to $1.43 (compared with EUR1 to
$1.50 in Q3 2008). There was no change in perimeter between Q3 2008 and Q3 2009.
YTD (9 months to September)
Period Sep YTD 2009 Sep YTD 2008 Growth / decline
Exchange rate Actual 2009 Actual 2008 at actual at constant
exchange rates exchange rates
IBG* 232.5 273.7 (15.1)% (17.7)%
IBG excl. RBS* 189.2 216.2 (12.5)% (15.4)%
Former RBS* SBG 43.3 57.5 (24.6)% (26.4)%
SBG 178.1 172.6 3.2% (0.1)%
Total 410.6 446.3 (8.0)% (10.9)%
* Effective from 1st July 2009, the IBG and RBS Divisions have been merged into
an enlarged IBG Division. For comparison, figures for the activities under
the earlier perimeter have been given.
The average exchange rate in YTD September 2009 was EUR1 to $1.36 (compared
with EUR1 to $1.52 in YTD September 2008).
There was no change in perimeter between YTD September 2008 and YTD September
2009.
Industrial Battery Group (IBG)
Under the new perimeter, sales in Q3 totalled EUR70.1m, a reduction in sales of
18.4% at constant exchange rates and 17.4% at actual rates.
Industrial standby activity was weaker during Q3 and rail activity was affected
by unfavourable project phasing. There was no notable change in the aviation
market during the quarter.
The decline in telecom sales in Q3 was less marked with the new Tel.X product
range starting to achieve sales with a number of operators, but with volumes
increasing slowly.
In contrast, small battery activity (ex. RBS) saw sales decline less sharply
than during the previous quarter with signs that customer destocking is
declining while some market share has been gained in the emergency lighting
market.
The merger of the IBG and RBS Divisions has taken place effective the 1st July
2009 and initial cost savings will be seen during H2 2009. The full impact of
the synergies should be achieved in 2011 with around EUR5m of annual savings.
Specialty Battery Group (SBG)
Sales in Q3 totalled EUR53.1m, a YoY reduction of 3.4% at actual rates and a
YoY reduction of 5% at constant exchange rates.
Demand from metering and electronics remained at similar levels to those seen
during Q2 although again the effect of customer destocking is beginning to
decline.
In sharp contrast, military and space had another strong performance. Demand
from Saft's main military markets remains good and there was a favourable
contribution from long term contracts.
Strategic investments for Saft
During August 2009, Saft announced that it had been selected by the US DoE to
benefit from a 50% funding of the project cost of up to $95.5m on a $200m
investment, in order to build a high volume Li-ion cell and battery plant,
subject to successful contract negotiation. The plant, to be based in
Jacksonville, Florida, will manufacture batteries for a number of Saft's
existing markets (telecom back-up power, aviation and military), but most
importantly, it will address the developing market for renewable energy storage.
Recent studies estimate the potential of this market to be very significant
by 2015. Saft will complete this investment in 2012. The plant's objective is to
generate sales of up to $200mp.a. in 2015 when running at full capacity.
In addition to the DoE grants, this investment has been selected to benefit
from additional subsidies and tax credits from both the City of Jacksonville
and the State of Florida totalling up to $20.8m. The contract with the US DoE
is anticipated to be signed before year end and construction would start
immediately.
Johnson Controls-Saft
In addition to Saft's success above, Johnson Controls-Saft's industrial project
in America was selected in August to receive from the US DoE a 50% funding of
the project cost of up to $299m (including $13m for a supplier of the joint
venture), subject to successful contract negotiation. The initial investment by
the joint-venture, estimated at $300m, will be a facility in Holland, Michigan.
In addition, this investment has been selected to benefit from subsidies and
tax grants from the State of Michigan of up to $148.5m, including $100m of
investmentrelated, refundable tax credit.
The plant's objective is to generate sales of up to $450m p.a. at full capacity.
It will be addressing the clean vehicle market which has been independently
estimated to have potential to be in excess of EUR5bn in 2014-2015. The contract
with the DoE is expected to be signed before year end with again the
investments to start immediately.
The Johnson Controls-Saft venture already has a facility in Nersac France,
which is fully operational and currently produces Li-ion batteries for Mercedes
and will very shortly produce for BMW. Production capacity is being expanded to
meet demand in 2010.
Finally, Johnson Controls-Saft has also recently been selected by Volkswagen to
supply battery products for a fleet of electric vehicles and by Jaguar Land
Rover for an HEV development that should lead to a future production programme,
and by Ford for an electric commercial vehicle with Azure Dynamics.
Financial calendar 2010
2009 turnover + Q4 turnover 28th January 2010
2009 Earnings release 19th February 2010
2010 Q1 turnover 29th April 2010
2010 Q2 turnover + Half year earnings 28th July 2010
2010 Q3 turnover 3rd November 2010
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS
Certain statements contained herein are forward-looking statements including,
but not limited to, statements that are predictions of or indicate future
events, trends, plans, objectives or results of operation. Undue reliance
should not be placed on such statements because, by their nature, they are
subject to known and unknown risks and uncertainties and can be affected by
other factors that could cause actual results and Saft's plans and objectives
to differ materially from those expressed or implied in the forward looking
statements. Saft draws attention to the risk factors described in pages 64 to 70
and 107 to 112 of Saft's registration document (Annual Report) registered on
2nd April 2009 with the Autorité des marchés financiers under No. R.09-014.
About Saft
Saft (Euronext: Saft) is a world specialist in the design and manufacture of
high-tech batteries for industry. Saft batteries are used in high performance
applications, such as industrial infrastructure and processes, transportation,
space and defence. Saft is the world's leading manufacturer of nickel-cadmium
batteries for industrial applications and of primary lithium batteries for a
wide range of end markets. The group is also the European leader for specialised
advanced technologies for the defence and space industries. With approximately
4,000 employees worldwide, Saft is present in 18 countries. Its 15 manufacturing
sites and extensive sales network enable the group to serve its customers
worldwide. Saft is listed in the SBF 120 index on the Paris Stock Market.
For more information, visit Saft at www.saftbatteries.com
Press and Investor Contacts:
Saft
Jill LEDGER, Corporate Communications and Investor Relations Director
Tel.: +33 1 49 93 17 77, jill.ledger@saftbatteries.com
FINANCIAL DYNAMICS
Stéphanie Bia, Tel.: +33 1 47 03 68 16, stephanie.bia@fd.com
Yannick Duvergé, Tel.: +33 1 47 03 68 10, yannick.duverge@fd.com
Clément Bénétreau, Tel.: +33 1 47 03 68 12, clement.benetreau@fd.com
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