Sales of the Lagardère Media segment increased by 5.7% in the first quarter of 2001, excluding changes in the group structure. Excluding the effects of exchange rates (primarily the rise of the dollar), this growth amounted to 4%. First quarter of 2000 included Grolier, Inc. sales – which have been deconsolidated since May 31, 2000.
The strongest growth in this segment came from Lagardère Active, whose sales were boosted by the Radio division. The Press division experienced a slightly weakening variance, but the Book and Distribution Services divisions grew significantly.
The Automobile segment faced a decline in sales. It should be noted that sales in the first quarter of 2000 (basis of comparison) had a strong increase (10.2%) from the corresponding period of 1999.
Sales in the High Technology segment in the first quarter of 2001 are represented by 15.14% of the sales of EADS while the corresponding period of 2000 was represented by 33% of the sales of Aerospatiale Matra
In accordance with the French accounting standards used by Lagardere SCA, when hedging against exchange rate fluctuation, sales generated in foreign currencies are converted at a rate determined by the hedging mechanism (rather than at the current exchange rate). EADS sales for the first quarter of 2001 were restated to conform to these standards.
Under these conditions, and taking into account the extent of the changes mentioned above, the comparison between the first quarter of 2000 and 2001 is not meaningful for the High Technology segment.
It should be noted that EADS stated that at a constant exchange rate level, the growth of sales should increase 20% in 2001.
