Saint-Gobain profits grow, outlook is challenging

Conditions in the building products business are likely to remain challenging in southern Europe and the UK, Saint-Gobain says in its annual results.

The global building distribution and construction product manufacturing business reported 4.1% like-for-like sales growth in 2011, bolstered by “vigorous” economic conditions in Germany and Scandinavia (52.1% of the group’s sales in the region).

Trading in the UK was described as subdued during the year. Saint-Gobain operates the Jewson, International Timber, IDS, Pasquill, Gibbs & Dandy, JP Corry, Calders and Grandidge, PDM, Kantor Ltd and Tyneside Timber businesses.

The building distribution division saw operating profits grow by 33% to €768m.

Group-wide operating profits grew 13.7% to €1.2bn from sales of €42.1bn.