Compagnie St-Gobain - Subsids 9 Months Sales Rprt
November 04 1999 - 1:05AM
UK Regulatory
RNS Number:2314A
Compagnie de Saint-Gobain
3 November 1999
Consolidated Sales
up 19.4% at September 30, 1999
Consolidated sales of LAPEYRE Group (a Saint-Gobain Group's subsidiary)
amounted to FF 5,591.4 million (EUR 852.4 million) at September 30, 1999,
an increase of 19.4% compared with the first nine months of 1998. On a
comparable structure basis, sales were up 7.6%.
Consolidated sales up 19.4%
Sales by Sept. 30, l999 Sept. 30, 1998 %
business FF m EUR m FFm EUR m Change
France 3,416 521 3,219 491 6.1
Lapeyre GME 440 67 359 55 22.6
K par K 805 123 716 109 12.4
SGM 0xxo Les Zelles
Total France 4,661 711 4,294 655 8.6
Total International 930 142 390 59 NS
Total Group Lapeyre 5,591 852 4,684 714 19.4
In the third quarter, sales gained 15.8% on a real structure basis
compared with the year-earlier period, and 8.4% on a comparable structure
basis.
In France, on September 15, 1999, the reduction to 5.5 % of the VAT rate
applied to maintenance and improvement spending, led to a wait-and-see
attitude on the part of consumers, resulting in slower growth in sales.
However this measure should support growth in Group activities related to
the renovation section (LAPEYRE and K par K installation services) and
boost trade sales by the LAPEYRE and GME network. The positive order
intake is encouraging for the year 2000.
Sales for the wholesaling and building trade subsidiaries are highly increasing,
thanks notably to firm demand in the newbuilding market.
Abroad, the German subsidiaries' sales ware substantially lower than
forecast, reflecting the persistent recession in the country's
construction market and pricing pressure caused by production overcapacity. The
German subsidiaries' 1999 earnings will therefore be significantly lower than
initially forecast, but the necessary measures have been taken to ensure a
substantial improvement in 2000. The outlook for the European retailing
subsidiaries, on the other hand, is starting to improve, and the Polish
subsidiaries are performing very well, with results above budget.
Overall, the Group should achieve full-year sales growth of around 18%,
and an increase in net profit of around 10%.
LAPEYRE - Investor Relations
Patrick Mallett
Phone: +33(0) 1.48.11.59.73
Fax: +33(0) 1.43.52.64.46
END
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