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Essilor - Third-Quarter 2010 Report
Date:10/22/2010

ion and by division was as follows:

- A still-fragile recovery in Europe, where the overall performance was affected by weakness in the Instruments Division, due to a high basis of comparison. In the corrective lens segment, sales continued to trend upwards in France while demand improved in Germany, the United Kingdom and Poland. However, the situation remained difficult in Spain and Italy.

- Gains in North America. In the United States, the new Varilux Comfort(R) New Edition and Varilux Physio(R) Enhanced(TM) lenses were well received by independent optometrists. Sales to optical chains were stable while demand for polarized lenses remained strong.

- Ongoing sales growth in emerging markets in Asia. Demand continued to be robust in India and China, as well as in the ASEAN countries where the product mix improved. On the other hand, difficult market conditions persisted in Japan and Australia.

- Very sharp growth in Latin America. In Brazil, the strategic development of the premium and mid-range segments generated an increase in unit sales and an improvement in the product mix, with Crizal(R) lenses in particular making significant gains. Growth was led by Argentina, where Essilor increased its market share.

- Continued strong momentum for the Equipment division, which benefited from firm demand for digital surfacing machines. The order backlog stabilized at a high level.

- In line with forecasts, a satisfactory performance in the Readers division, led by the success of new products.

Significant third-quarter events and other transactions

Acquisitions

In the third quarter, Essilor made five new acquisitions, of which three in the United States, one in the United Kingdom and one in India.

In addition to the previously announced transactions with Gulf States and PASCH (Nikon-Essilor), Essilor of America forged a partnership with Reliable Optics, a Brooklyn, New York-based prescription lab
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SOURCE Essilor
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