Wendel 2007 Revenue Up 28%; Keeps 2012 Targets
DOW JONES NEWSWIRES
February 7, 2008 4:07 a.m.
PARIS (Dow Jones)--French investment company Wendel (MF.FR) Thursday said its revenue in 2007 rose 28%, due to strong performance at all of its subsidiaries.
In a statement, Wendel said that its revenue for the full year totaled EUR5.5 billion, up from EUR4.26 billion a year earlier.
On a pro-forma basis, Wendel's full-year revenue increased 9% compared with EUR5.02 billion in 2006. The pro forma figures for 2006 take into account specialty chemical company Materis' and Compagnie Deutsch's revenues, Wendel said.
Wendel also reaffirmed its objective of doubling net asset value by 2012 and said it's convinced of French buildings material company Compagnie de Saint-Gobain SA's (12500.FR) potential. The company also said it's to discuss with Saint-Gobain about whether it should sit on its board.
Since October 2007, Wendel has built up a stake of just under 18% in Saint-Gobain and has said it could raise its stake further.
But since the start of the year, Saint-Gobain shares have lost more than 20%, while Wendel's shares lost more than 30%.
Standard & Poor's recently cut Wendel's long-term rating to BBB- from BBB, placing the rating "under watch with a negative implication" because Wendel's credit metrics substantially suffered from the sharp deterioration in financial markets.
Wendel Thursday said it's mobilized EUR1.5 billion of its own resources and obtained non-recourse financing, with maturities of three to five years, "in line with the group's long-term strategy." Wendel also said it has significant cash resources that enable it to weather any turbulence in the markets.
"In a more difficult environment, the pursuit of growth targeted by all our subsidiaries and the quality of our assets bolster Wendel's development potential," Wendel Chief Executive Jean-Bernard Lafonta said in a statement.
At 0835 GMT, shares in Wendel were trading down EUR0.45 ,or 0.7% lower, at EUR68.78.
Company Web site: wendel.fr |
