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Saint-Gobain estimated 2006 net profit rose 30 percent

Saint-Gobain estimated 2006 net profit rose 30 percent

Compagnie de Saint-Gobain SA said Thursday that net profit rose 30 percent last year on strong demand across its entire portfolio of construction and building materials, according to its provisional estimate of 2006 results.
Paris-based Saint-Gobain, one of the world's largest glass makers, reported estimated net profit for 2006 of euro1.64 billion (US$2.13 billion), up from euro1.26 billion in 2005 and in line with the euro1.66 billion forecast by analysts.
The company, which is scheduled to report its definitive 2006 earnings in March, also said its earnings before interest and taxes rose by a better-than-expected 30 percent to euro3.71 billion (US$4.81 billion) last year, up from euro2.86 billion in 2005.
This year, Saint-Gobain said it expects "robust" growth in EBIT and double-digit growth in net profit, excluding capital gains and losses on asset sales.
The performance beat Saint-Gobain's own guidance made last year of EBIT growth between 27 percent and 28 percent and net profit growth between 25 percent and 26 percent.
Revenue rose 19 percent to euro41.6 billion (US$54 billion), up from euro35.1 billion in 2005.
The company announced an expansion this month into emerging markets, snapping up six companies with total revenue of more than euro230 million (US$300 million) in South Africa, Algeria, Turkey and Argentina.
However, it is also selling off some units and has perfume bottle maker Desjonqueres currently on the block.
Saint-Gobain said it expects to reach a deal to sell control of Desjonqueres to an unidentified buyer "in the next few weeks." The deal would set an enterprise value of around euro690 million (US$895 million) for the unit, and Saint-Gobain plans to take a 20 percent stake in the new company.
Its shares reached a new high earlier this month, with analysts citing strategic refocusing, management change, divestments and acquisitions. The shares closed 1.5 percent lower at euro69.25 (US$89.87) in Paris before the announcement.


Updated : 2021-04-14 14:23 GMT+08:00