Saft a manufacturer of high-end batteries for industry and defence, announces its results for the full year ended December 2007. The full year 2007 sales was EUR 600.5m, up 10.7% compared with FY 06. Net income was EUR 26.9m in 2007, compared with EUR 37.9m in 2006.

Industrial Battery Group

The Industrial Battery sales growth was exceptional being 21.7%. This sales growth increased steadily throughout 2007 as the nickel-related price increases took effect, such that the nickel cost is now being fully recovered. The sales growth included volume growth of 15%, of which approximately half was due to additional business with AT&T, albeit at lower margins.

Speciality Battery Group

Speciality Battery (SBG) sales increased by 1.5%.

Rechargeable Battery Systems

Rechargeable Battery sales increased by 5.2%. Saft estimates that approximately 16% of this sales increase was due to pricing, offset by approximately 11% of volume losses. Pricing, with the higher nickel costs being fully recovered through a nickel surcharge (which was introduced but not fully effective in 2006).

Johnson Controls - Saft

In January 2006, Johnson Controls and Saft created Johnson Controls - Saft Advanced Power Solutions , a joint venture for batteries for Hybrid and Electric vehicles. Saft contributed know-how, technology licences and contracts for a 49% stake. Johnson Controls contributed know-how, technology licences, contracts and $40m of cash and assets for a 51% stake. The creation of the joint venture resulted in Saft recording a non-recurring profit of EUR 14.9m in 2006. The new JC-S production line at Saft's RBS site in Nersac, France was officially opened on 31st January 2008, in the presence of 7 major car manufacturers. The joint venture anticipates that it will make further cash calls totalling approximately $40m in 2008.