Pierre-Andr de Chalendar, chairman and chief executive officer of Saint-Gobain, made the following comments on the release of the company“s year-end results: In 2010, in a global economy still recove…
Pierre-Andr de Chalendar, chairman and chief executive officer of Saint-Gobain, made the following comments on the release of the company“s year-end results: In 2010, in a global economy still recovering from the crisis, our sales volumes got back on an upward trend and our priority focus on sales prices paid off. We delivered a sharp upswing in our results, driven in particular by the significant cost savings achieved over the past few years. Overall in 2011, we expect to see more upbeat trading conditions in our key markets (particularly new-build and renovation markets in Europe). Nevertheless, we will see a sharp rise in raw material and energy costs that we will endeavour to limit by pursuing our priority focus on raising sales prices. Against this backdrop, Saint-Gobain is targeting robust organic growth and double-digit growth in operating income for 2011. Leveraging its financial strength, the Group will resolutely adopt a tempered development policy to boost this return to growth. It will step up its capital expenditure and financial investments, targeting emerging countries and high value-added Habitat solutions. Given an increase in its capital expenditure of EUR 500 million in 2011, Saint-Gobain is targeting free cash flow of EUR 1.3 billion.
