Tuesday , August 9 2022

Saint Gobain: confident for 2019, heavy defenses in 2018



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Outside the United Kingdom, where he rejected the group's edge, the abolition of this was mainly related to Lapeyre stores in France, with 372 million, and channeling activities (-511 million) – two ongoing activities. restructuring – as well as on a German distribution (-212 million), whose published transfer process "is going on well" according to Saint-Gobain.

The world leader in building materials, therefore, indicates a decline of 73.2% in its net profit, group share, to 420 million, collecting organic growth of 4.5% of operating income to 3.1 billion euros, a figure in line with expectations (consensus IBES / Refinitiv 3.08 billion).

CEO Saint-Gobain, Pierre-André de Chalendar, launched in November an extensive reorganization plan, which intends to achieve 250 million euros in savings by 2020 and to sell a billion euros of assets by the end of this year. A new asset review should be launched in turn.

The "Raab Karcher" distribution activity in Germany – whose sales order has been entrusted to Goldman Sachs – is the main asset in question by this redirect program.

Regarding 2019 – when cost savings reach 50 million – Saint Gobain is confident and expects further organic growth in operating income.

"The year 2019 has started well, and I expect markets that will still be strong with very good performance in the United States," said Pierre-André de Chalendar at Reuters in a telephone interview. .

IMPACT FROM A BELL FILM IN FRIEND

In France – where growth grew to 3% in 2018 with a low impact of yellow bisses – the CEO expects a renewal this year, which should take over the new construction , a market that is a risk to be harder in the second half of the year, given the current housing decline.

In the rest of Europe, momentum is expected to continue in the Nordic countries – especially Sweden – which forms the second largest group of activity for the group behind France and before the United States.

"The 2018 results at the operational level are very robust and show the improvement I have identified in July, after a slightly mixed half year," says CEO, stating that the action result had been registered an increase of 7.2% in the second half of the year against only 1.7% in the first half.

In Europe, the activity had already taken last year by the Nordic countries, but the results were contrasted in Germany where the construction was improving, but where it was. Was the glass industry affecting the glass activities, and punished German main manufacturers, customers from Saint-Gobain.

At the operational level, the group has now organized around four regional regions (North, South, America and Asia-Pacific) – giving autonomy across local teams – and a global division for high-end products. performance, such as automotive glass, whose customers are globally.

The Sant-Gobain share has improved since the beginning of the year (+ 13%) without, however, offset the 36.6% reduction recorded in 2018 due to the poor performance of the group.

(Edited by Benoît Van Overstraten)

by Jean-Michel Belot

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