sain t-gobain annu al report 2008 annual report

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NOTE 8
Inventories
Dec. 31, Dec. 31, Dec. 31,
(in € millions) 2008 2007 2006
Gross value
Raw materials 1,491 1,335 1,312
Work in progress 274 283 291
Finished goods 4,754 4,639 4,426
Gross inventories 6,519 6,257 6,029
Provisions for impairment in value
Raw materials (97) (95) (98)
Work in progress (7) (9) (10)
Finished goods (302) (320) (292)
Provisions
for impairment in value (406) (424) (400)
Net 6,113 5,833 5,629
In 2008, cost of sales came to €32,923 million (2007:
32,235 million; 2006: €31,180 million).
Impairment losses on inventories recorded in the 2008
income statement totaled €128 million (2007: €159 million).
Impairment reversals, due to increases in the net realizable
value of inventories, amounted to €92 million in 2008 (2007:
€94 million) and were recorded as a deduction from impairment
losses for the year.
NOTE 9
Trade and other accounts receivable
Dec. 31, Dec. 31, Dec. 31,
(in € millions) 2008 2007 2006
Gross value 6,084 6,595 6,687
Provisions for impairment in value (437) (384) (386)
Trade accounts receivable 5,647 6,211 6,301
Advances to suppliers 561 635 582
Prepaid payroll taxes 26 23 22
Other prepaid and recoverable taxes
(other than income tax) 356 327 293
Accrued income 13 12 14
Other 476 489 485
- France 179 122 116
- Other Western European
countries 134 156 168
- North America (11) 16
- Emerging countries and Asia 174 195 201
Provisions for impairment in value (8) (5) (6)
Other receivables 1,424 1,481 1,390
In 2008, a total of €101 million was added to provisions for
impairment of trade and other accounts receivable (2007:
€76 million; 2006: €56 million) and €57 million was released
in respect of recoveries or bad debts (2007: €74 million; 2006:
€75 million). Bad debt write-offs are also reported under this
caption, for €58 million in 2008 (2007: €44 million; 2006:
€48 million).
Trade and other accounts receivable are mainly due within
one year, with the result that their carrying amount approximates
fair value.
The Group considers that its exposure to concentrations of
credit risk is limited due to its diversified business line-up,
broad customer base and global presence. Past-due trade
receivables are regularly monitored and analyzed, and provisions
are set aside when appropriate. Net past-due trade
receivables amounted to €845 million at December 31, 2008
(including €156 million over three months past-due), versus
€765 million at December 31, 2007 and €777 million at
December 31, 2006. The increase in 2008 was mainly due to
changes in group structure.
NOTE 10
Equity
Number of shares outstanding
At December 31, 2008, Compagnie de Saint-Gobain’s capital
stock comprised 382,571,985 shares of common stock with a
par value of €4 each, all in the same class (December 31, 2007:
374,216,152 shares; December 31, 2006: 368,419,723 shares).
During 2008, 8,272,947 new shares were issued to members of
the 2008 Group Savings Plan and 82,886 shares were issued
on exercise of stock options (of which 50,489 options included
in the November 20, 2003 plan, 31,597 options included in the
November 18, 2004 plan and 800 options included in the
November 17, 2005 plan).
At the Shareholders’ Meeting of June 7, 2007, shareholders
authorized the Board of Directors of Compagnie de
Saint-Gobain to:
Issue, on one or several occasions, up to 147.5 million new
shares with or without pre-emptive or priority subscription
rights for existing shareholders (twelfth, thirteenth, fourteenth
and fifteenth resolutions).
Issue, on one or several occasions, up to 18.5 million new
shares to members of the Group Savings Plan (sixteenth
resolution).
Saint-Gobain – Financial Report 2008