Saint-Gobain Backs Outlook Amid Improving Construction Markets

By Pierre Bertrand

Compagnie de Saint-Gobain backed its guidance for the year, noting that construction markets in some countries are starting to show signs of improvement.

The French building-materials company said it made 2.75 billion euros ($2.98 billion) in operating income in the first half, compared with EUR2.8 billion a year prior, for an operating margin of 11.7%.

Net profit, meanwhile, rose 15% to EUR1.66 billion

Revenue declined 6% to EUR23.56 billion amid tough conditions for new construction markets in Europe. Saint-Gobain noted that difficulties were close to bottoming out.

In April, Saint-Gobain cautioned of difficulty in some of its markets through the first half of the year and said Thursday that sales declined most in Europe, adding to declines which weighed on the company's first quarter.

That said, the company said trading will likely improve in the second half amid an easier comparison basis and improvements in the construction markets of some countries.

Saint-Gobain backed its guidance of a double-digit operating margin for 2024, and added that it also expects this for the second half.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

July 25, 2024 13:05 ET (17:05 GMT)

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