The French-based building products to glass and plastics conglomerate St Gobain reports a fall in profits in the first half.
The company saw net income decline 6.1% (5.6% on a like-for-like basis) during the period. Excluding sales of non-current assets, net income for the group was estimated down 8% at Euros515 million. Consolidated net income slumped 24.9% to e498 million, but that was largely due to the fact that the figure was boosted in the same period in 2001 by the proceeds from the sale of shares in BNP Paribas.
Sales for the six months were up 0.4% from Euros15.286 billion to Euros15.35 billion.
The companies housing products division achieved the best performance overall, buoyed by a vigorous construction market in the U.S. Building materials distribution also continued to develop and improve profits.
Sales in France accounted for 30.0% of the total, with other European countries contributing 40.2%, North America 22.7% and other countries 7.1%.
Profitability rose most strongly in the United States and United Kingdom (where St Gobain owns the Jewson merchanting chain) thanks to the positive impact of restructuring, but decreased in other European countries.
For the future, St Gobain said the recent downturn in financial markets has produced uncertainty regarding trends in consumer confidence and spending. But the company still believes it can achieve full-year net income excluding capital gains on a par with 2001.
