2/16/2012 2:42 PM ET
(RTTNews) - French building materials company Compagnie de Saint-Gobain SA said Thursday that its 2011 profit rose 14% from last year, helped by strong demand in emerging markets and its ability to increase prices to offset soaring raw materials and energy costs.
The company, which makes a wide range of materials including insulation, roofing, glass bottles and plastic film used in e-readers, reported organic growth of 5% for 2011, with all of its geographic areas and business sectors contributing to the performance.
Asia and emerging countries, constituting 19% of total sales in 2011, continued to deliver the company's best organic growth performance, at 8.5%, despite a slowdown in Asia in the second half.
Looking forward to 2012, Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain, said, "We are targeting moderate organic growth, driven mainly by the increase in sales prices needed to offset the rise in raw material and energy costs, while operating income and profitability should prove resilient."
For the full year 2011, the company's net income rose to €1.28 billion or €2.44 per share from €1.13 billion or €2.15 per share in 2010.
Excluding capital gains and losses on disposals, asset write-downs and material non-recurring provisions, recurring net income for 2011 rose 30% to €1.74 billion or €3.30 per share from €1.34 billion or €2.54 per share in the prior year.
The company, which is also the world's largest glass maker, said sales for the full year 2011 rose 5% to €42.12 billion from €40.12 billion in the full year 2010.
Saint-Gobain also said its Board of Directors has decided to recommend to the June 7 shareholders' meeting a dividend payout of €1.24 per share, up 8% on the 2010 dividend. The dividend will be paid entirely in cash on June 14, with the ex-coupon date scheduled for June 11.
Saint-Gobain shares closed up 0.50% at €34.92 in Paris.
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by RTT Staff Writer
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