Saint-Gobain posts 2.2% sales gain
Saint-Gobain's sales for the third quarter of 2015 were €9.96 billion ($10.92 billion), up 2.2% from €9.75 billion ($10.69 billion) in the same period last year.
"The third quarter reflects a disappointing economic climate versus our expectations, with a contraction in France - which is not yet showing any signs of improvement - as well as moderate growth in other Western European countries. Plunging sales in the oil and gas industry put the brakes on the U.S., while emerging markets continued to deliver good organic growth despite the economic slowdown in certain countries including Brazil," said Pierre-André de Chalendar, chairman and chief executive officer.
Citing weak demand in France and Brazil, the company plans to "roll out the cost cutting plan" in order to unlock additional cost savings of €170 million ($186 million) in the second half 2015 versus the second half 2014, representing total cost savings of €360 million ($394 million) in 2015 compared to 2014.
Saint-Gobain is selling its European glass packaging unit Verallia and has signed a binding agreement to buy a 16 percent stake and 52 percent of the voting rights of Swiss adhesive and mortar maker Sika AG.
INDUSTRIAL SUPPLY MAGAZINE
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