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| Saint-Gobain reports sales decline in Q1 French materials giant Saint-Gobain said its consolidated sales for first-quarter 2008 came in at €10,301 million, compared with €10,447 million in the same year-ago period. This represents a decline of 1.4% on an actual structure basis, but a rise of 0.9% like-for like (on a constant structure and exchange rate basis) and of 1.5% at constant exchange rates. At a constant number of working days, organic growth for Saint-Gobain would have been slightly above 3.0%, despite the very high comparison basis with first-quarter 2007 (up 8.0% on a like-for-like basis compared to the prior-year period). Changes in group structure represent 0.5% growth in sales. The impact of the Desjonqučres and Reinforcements & Composites divestments in 2007 was more than offset by the contribution from acquisitions, in particular Maxit and Norandex (consolidated as of March 1, 2008 and September 1, 2007, respectively). The exchange rate impact was a negative 2.8%, in particular as a result of the further slide in the value of the US dollar and pound sterling against the euro. Like-for-like, consolidated sales moved up €96 million, or 0.9%. Sales prices remained on an upward trend (+2.6%), while volumes fell back slightly (-1.7%), as expected, due to fewer working days than for the same period 2007. All of the Group’s business sectors reported a rise in like-for-like sales over the quarter, with the exception of Construction Products (CP), which saw a 0.4% dip in sales. This was fueled by a downturn in the Interior Solutions business in the US, not entirely offset by vigorous 4.9% growth in Exterior Solutions. On the whole, residential construction remained on track in western European countries. In the United States, however, in line with the economic scenario set out by Saint-Gobain at the beginning of the year, residential construction markets continued to lose ground and are not yet showing any tangible signs of leveling off. write your comments about the article :: © 2008 Construction News :: home page |