Essilor: net income up 9.8% in 2003

The Board of Directors of Essilor International today announced the definitive financial results for the year ended December 31, 2003. Consolidated sales totaled €2,116 million, a 1% decline caused by a negative currency effect, but operating income rose 7.1% to €364.9 million, while operating margin widened 1.3 points to 17.2%, far exceeding the targeted 16%. Excluding the currency effect operating income was up 16.4%.

Net income after minority interests increased by 9.8% to €200.3 million. Earnings per share rose 8.8% to €1.98.

This strong growth was led by: an increase in profitability (excluding the currency effect) in all geographic markets, including the United States, where margin improvement objectives were met despite a difficult year; a noticeable improvement in results from the Transitions lineup; an exceptional late-year increase in results from Essilor Germany and Rupp und Hubrach in Germany.

In 2004, Essilor will continue expanding worldwide sales of the Varilux Ipseo progressive lens and the Crizal Alizé coating, both introduced at the end of 2003, and extending its range of high and very high index lenses.

Consolidated sales should expand by an organic 5% in 2004, with additional growth coming from the full-year contribution of the 14 companies acquired in 2003. In 2004, Essilor will continue to pursue its strategy of making targeted acquisitions, as well as measures to improve productivity in all its businesses and country operations.