RISE IN NET SALES AND EARNINGS.
In 2007,
Materis experienced robust and profi table
growth, with net sales of €1,817 million, up
12% compared with 2006. Adjusted operating
income totaled €227 million and the operating
margin held steady at 12.6%. Innovation, price
increases and productivity gains offset the
increase in the cost of commodities and
energy.
CONTINUED BALANCED GROWTH.
Materis
continued to benefi t from a good balance
between organic growth (7%) and acquisitions
(6%).
The Admixtures business (Chryso) delivered
excellent performance, with growth in sales
especially in eastern Europe, Africa and the
Middle East, owing in particular to the market
for concrete. Net sales totaled €201 million, up
16.5% compared with 2006.
The Aluminates business (Kerneos) posted a
very good 2007, with growth of 10.8% in net
sales to €327 million. All geographic regions
contributed to this very favorable performance.
The Mortars business (Parex Group) once
again turned in an excellent year, with net sales
of €552 million, up 13.2% over 2006. The
regions driving growth were Asia-Pacifi c, Argentina
and Europe, with France leading the way.
They more than offset the contraction in individual
construction in the United States.
The Paints business (Materis Paints) posted
net sales of €748 million, up 10.5% compared
with 2006, benefi ting from relatively upbeat
market conditions in France and a favorable
turnaround in the market in Spain and
Portugal.
INNOVATION MOMENTUM.
Materis’ four divisions
launched a large number of clean, easyto-
use and high value-added products and
services during the year.
Chryso launched a range of new-generation
plasticizers to facilitate the use of ordinary concrete
and also worked on a demolding agent
designed exclusively with plant-based components
and more than 60% biodegradable.
Kerneos launched Secar XeniomTM, a product
that improves refractory concretes by making
them simpler, easier to use and more
consistent.
After launching a dustless tile adhesive in
France in 2006, the first of its kind anywhere in
the world, Parex Group launched a dustless
render in 2007 and expanded the technology
in Argentina and the United States.
As part of its efforts to protect the environment,
Materis Paints developed new generation
paints that carry the European green Ecolabel.
They offer maximum environmental value, as
well as exceptional esthetic qualities, yield and
applicability.
CONTINUED INTERNATIONAL GROWTH.
In
2007, Materis invested a total of €70 million in
more than 10 acquisitions in its four businesses.
Three acquisitions, in Brazil, Argentina and
Chile, strengthened Materis’ existing positions
in mortars in South America. Materis entered
the Turkish market with the acquisition of Geser
(mortars) and also acquired the fi fth-largest
Moroccan decorative paints company, accelerating
the group’s growth in emerging markets,
where Materis derives 18% of its net sales.
Finally, Materis is consolidating its positions
in mortars, admixtures and paints in North
America, which will constitute a platform for
development.
OUTLOOK
Materis’ markets are
growing rapidly in emerging
economies, while they are
stable overall in Europe and
contracting in the United
States. Materis is confident
it will be able to continue
growing by pursuing its
internal development projects
and taking advantage
of acquisition opportunities.
