Saint-Gobain’s profits up 41% to €3.1bn

A 41% rise in operating profits to €3.1bn (2009: €2.2bn) has been recorded by merchanting and distribution giant Saint-Gobain for 2010.

The group, which owns International Timber, Pasquill Roof Trusses, International Decorative Surfaces and Jewson, saw its sales rise to €40.1bn (2009: €37.7bn).

“In 2010, in a world economy still recovering, our sales volumes have returned to growth and we benefited from the priority given to price,” said Pierre-Andre de Chalendar, Saint-Gobain chairman and CEO.

He said in 2011 the group expected more favourable developments in its key markets, including new residential and renovation in Europe. But he warned about the impact of significant increases in the cost of raw materials and energy.

Saint-Gobain said the European construction market experienced a progressive improvement throughout 2010, including in the UK.

The building distribution division’s activity level was down 1.5% on a year ago, due to a very difficult first half. But renewed growth of 1% in the second half was mainly due to recovery in Germany, the UK and Scandinavia.

Saint-Gobain’s net debt stood at €7.2bn at December 31, 2010.