Saint-Gobain’s profits rise

Saint-Gobain’s building distribution division saw its operating profits rise nearly 70% to €197m in the first half of 2010.

Turnover for the period was 1.5% down to €8.3bn, compared to a year ago. Sales grew 1.7% in the western European region during the second quarter.

Saint-Gobain said the improvement in construction markets from March did not fully offset the impact of unfavourable weather conditions during the first two months of the year.

The division’s brands include Jewson, International Timber, IDS and Graham in the UK, and Point P Building Materials, Lapeyre and Building Platform in France, with a number of other businesses in Germany and Scandinavia.

Group-wide the company posted operating profits of €1.2bn, up 100% on a year ago, while sales reached €19.5bn.

Saint-Gobain described the results as a “strong rebound” for the group, with most of its activities related to construction markets in Europe and North America showing improvement in volumes and selling prices, while the household consumption market remained stable. The operating margin was 7.4% (2009: 5%).

The group plans €600m of cost savings during 2010, bringing to €2.1bn the total cost savings for 2008-2010.