Saint-Gobain sees profits rise
FRANCE’S Saint-Gobain, the world’s largest building materials group, posted a rise in first-half sales and operating profit, helped by the strength of the construction sector in emerging markets, especially Asia.
Operating profit rose 55.4 per cent and the group raised its 2010 cashflow target.
St Gobain confirmed its target for a strong rise in operating profit this year and said operating profit would be slightly higher in the second half than the €1.45bn (£1.21bn) reported at the end of June.
The company, whose glass panels were used to build the Louvre Pyramid and London’s Gherkin tower, reported a 4.3 per cent rise in sales to €19.53bn in the first six months of the year, as the construction sector in Asia continued to be strong.
“The economic environment is globally improving,” chairman and chief executive officer Pierre-Andre de Chalendar said. He said the group would seek small acquisitions in emerging countries in the energy efficiency sector in the second half.
The results prompted the group to raise its free cashflow generation target for the year to €1.4bn, from the €1bn previously expected.
Shares in Saint-Gobain, of which financial holding company Wendel is the largest holder with a 17.5 per cent stake at the end of 2009, closed up 0.5 per cent before the statement was released.
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France’s Saint-Gobain is the world’s largest building materials group
Glass panels, made by Saint-Gobain, were used to build the Louvre Pyramid in Paris and the Gherkin tower in London.