By William Horobin
PARIS--French building materials company Compagnie de
Saint-Gobain SA (SGO.FR) Wednesday stuck to its full-year outlook
as its earnings improved in the first half, despite a decline in
revenue.
The French company's revenue fell 1% to EUR20.45 billion ($27.46
billion) in the first half due a fall in the value of currencies
where Saint-Gobain sells its products. But operating profit rose
8.7% to EUR1.33 billion, aided by EUR240 million of cost-cutting
measures. The company's net profit more than doubled to EUR671
million, boosted by asset disposals and a decrease in
provisions.
For this year, Saint-Gobain expects operating income excluding
the effect of currency fluctuations, asset sales and acquisitions
to show a "clear improvement," the company said. On the same basis,
operating profit income rose 9.7%, the company said.
"After a first quarter boosted by favorable weather conditions
in Europe, the second quarter confirmed the slight uptrend in our
markets," Chief Executive Pierre-Andre de Chalendar said in a
statement.
Excluding the impact of foreign exchange, growth was
particularly strong in Asia, emerging countries and in North
America, Saint-Gobain said. But the home market of France continued
to be affected by a decline in new building.
Write to William Horobin at william.horobin@wsj.com
Access Investor Kit for Compagnie de Saint-Gobain SA
Visit
http://www.companyspotlight.com/partner?cp_code=A591&isin=FR0000125007
Access Investor Kit for Compagnie de Saint-Gobain SA
Visit
http://www.companyspotlight.com/partner?cp_code=A591&isin=US2042803096
Subscribe to WSJ: http://online.wsj.com?mod=djnwires