Saint-Gobain profits up 53% to £768m.

Building materials giant Saint-Gobain has reported a 53.3% rise in first half net profits to €768m.

The group’s sales increased 6.9% to €20.8bn.

Saint-Gobain said its results confirmed the gradual improvement in businesses linked to the residential construction sector in Europe.

The Building Distribution division rebounded strongly over the first half, posting 7.3% organic growth, of which 4.5% was in the second quarter, spurred by a strong rise in sales volumes in France, Germany, the Netherlands and Scandinavia during the first six months.

“In contrast, trading was more uneven in the UK and Eastern Europe and remains very tough in southern Europe,” it said.

The group’s UK businesses include Jewson and International Timber.

The divison’s operating margin was up to 3.6%.

“Saint-Gobain’s strong sales growth in the first half of the year confirmed the recovery in sales volumes observed in 2010 and our successful focus on sales prices,” said Pierre-André de Chalendar, chairman and CEO of Saint-Gobain.

“We expect the underlying trends observed since the beginning of the year to continue in the six months to December 31,” he said.