RNS No 7318q
COMPAGNIE DE SAINT GOBAIN
23rd July 1998


               NET INCOME EXCLUDING CAPITAL GAINS OF
                 2.8 BILLION FRENCH FRANCS (+22%)
                   FOR THE FIRST HALF YEAR 1998

The consolidated net income of the SAINT-GOBAIN Group for the first half year
is estimated at 3,440 million French Francs, against 3,356 million French Francs
for the 1997 first half.

Excluding capital gains, net income amounts to 2,760 million French Francs, up
an 22.1% over the 1997 first half.  This increase reflects the on-going good
level of activity in North and South America, as well as the confirmation of an
economic recovery in Europe.

The estimated consolidated figures for the half year, which were examined by
the Board of Directors of SAINT-GOBAIN at the meeting on July 23rd, 1998 and
are as follows:

Millions of French Francs:                     Estimated 1998     1997

Sales                                                 57,690       52,846 
Operating income                                       5,760        5,059
Financial charges, net                                  (930)        (896)
Reorganisation and other costs                          (370)        (388)
Income before tax and before                           4,780        4,237
results of sales of non-current assets -
Results of sales of non-current assets                   900        1,558
Income taxes                                          (1,880)      (1,968)
Net income before minority interests                   3,750        3,695
Net income                                             3,440        3,356
Net income excluding net results of sales              2,760        2,259
of non-current assets
Resources from operations (cash flow)                  6,460        5,495
Capital expenditure on plant and equipment             3,700        3,886
Acquisition of investments                             3,800        1,015
Net indebtedness                                      21,320       14,459

Group sales are up 9.2% on a real structure basis.  On a comparable structure
basis sales increase by 5.2% in French Francs and 3.7% in local currencies.
Selling prices (current) are slightly up, in the semester, due to the upward
movement in most divisions since the beginning of 1998.

Sales are split as follows: France 38.2%; other European countries: 29.2%; 
America and Asia: 32.6%.

Operating income is up 13.9% and represents 10% of sales, against 9.6% for the
1997 first half.

In a an economic climate, which remains favourable, America keeps a good level
of profitability, while Europe, and particularly France, benefiting from the
economic recovery, notably in the building sector, improves its performances.

Income before tax and before results of sales of non-current assets increases
by 12.8%, despite the increase in financial charges and the drop in dividends 
received from non consolidated companies (320 million French Francs against 462
million French Francs for the 1997 first half).  These dividends were
particularly high last year due to the payment, by Compagnie de Suez, of an
exceptional dividend of 253 million French Francs. 

Reorganisation and other costs amount to 370 million French Francs, and are
stable compared to the 1997 first half (388 million French Francs). 

Capital gains are 900 million French Francs, and are essentially from the
disposal during the first quarter of 1,2 million Vivendi (ex-Compagnie Generale
des Eaux) shares and the remaining holding in AXA-UAP.

Net income amounts to 3,440 million French Francs, slightly up over the 1997
first half.  Excluding capital gains, it reaches 2,760 million French Francs
against 2,259 million French Francs for the 1997 first half, an increase of
22.1%.

Cash flow  amounts to 6,460 million French Francs, up by 17.6%. It represents
11.2% of sales against 10.4% for the 1997 first half.

Net indebtedness is 21.3 billion French Francs at June 30th, 1998, giving a 
gearing of 30%.

By activity, most of the divisions contributed to the improvement of the Group's
results and particularly the Flat Glass, Pipe and Specialised Distribution
Divisions.

The review by geographical area shows on-going good performances in North and
South America, as well as an improvement in Europe, except in the United 
Kingdom.  The crisis currently affecting Asian countries did not have a
significant incidence on results, because of the positions of the Group in this
area.

Compagnie de SAINT-GOBAIN, the parent company, recorded a trading profit of
1,436 million French Francs, against 1,299 million French Francs for the first
half year 1997.


Investor Relations Department

Tel.: Florence TRIOU 01 47 62 45 19
Tel.: Lounis BEKKAT  01 47 62 32 36

Fax:                 01 47 62 50 62


END

MSCDXFFLVDKBBKB
Compagnie De Saint-gobain (LSE:COD)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Compagnie De Saint-gobain Charts.
Compagnie De Saint-gobain (LSE:COD)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Compagnie De Saint-gobain Charts.