Compagnie de Saint-Gobain“s sales increased 6.7% at constant exchange rate in the first nine months of 2007, due to solid demand in all of the group“s construction-related businesses with the except…
Compagnie de Saint-Gobain“s sales increased 6.7% at constant exchange rate in the first nine months of 2007, due to solid demand in all of the group“s construction-related businesses with the exception of the USA. The French glass and building materials maker posted sales of EUR 32.63 billion for the January-September period, up 5.5% on a reported basis, from EUR 30.9 billion a year earlier. The company said weakness of the US dollar was responsible for the 1.2 percentage point drop from the constant-rate result. The sales figure was slightly up on expectations, as analysts polled by Dow Jones Newswires forecast sales of EUR 32.41 billion. The company did not break out figures for the 3Q 2007. The company said its organic growth for the nine-month period was 6% on a like-for-like basis, thanks to a significant rise in sales prices and, to a lesser extent, volumes. “Vigorous markets in Western Europe, bolstered by the impact of regulations promoting energy efficiency in the building industry, more than offset the low level of construction activity in the US”, Saint-Gobain said. In North America, sales were down by 7% on a like-for-like basis, due to the ongoing problems in the construction sector. However, Asian and emerging markets reported vigorous 17.3% organic growth, driven in particular by Eastern Europe, the company said in a statement. The company“s Flat Glass sector delivered the group“s strongest organic growth for the first nine months of the year and for the 3Q 2007, as the sector benefited from growing demand for energy-efficient glass. The company also said its UK and German markets reported a more subdued performance, but did not disclose further details. Saint-Gobain also reiterated its full-year 2007 objectives of double-digit growth in operating income and at least 20% growth in recurring net income. Since the beginning of 2007, shares in Saint-Gobain have lost around 4.9% due to concerns about the bursting of the private-equity bubble, a weaker outlook for the US and European residential markets and renewed energy cost inflation, analysts said.