Low activity levels in America cast shadow over strong performance in first nine months

French building materials producer Saint-Gobain has announced a 5.5% turnover increase for the first nine months of 2007, coming in slightly ahead of analyst expectations.

Strong growth was reported in France, other western European countries, emerging countries and Asia/Pacific but turnover in North America fell by 15.7%.

The group said turnover in the nine months to September was 鈧32,630m (拢22,669m), compared to 鈧30,925m (拢21,485m) for the same period last year.

The building distribution business saw the steepest growth, with a turnover of 鈧14,445m (拢10,034m), up 12.1% from 鈧12,883m (拢8,949m) in 2006.

Turnover in the flat glass division was up 11.7% to 鈧4,152m (拢2,884m) from 鈧3.716m (拢2581m) last year, boosted by rising demand for energy-efficient glass, while sales of construction products were up 3% to 鈧8,447m (拢5,867m).

However, the packaging business saw a 12.3% fall in turnover to 鈧2,712m (拢1,883m).

By region, France saw a 4.4% rise in turnover to 鈧9,702m (拢6,737m). Turnover in other western European countries rose by 10% and in emerging countries and Asia/Pacific, the figure was 18.4%

Looking ahead to the fourth quarter, Saint-Gobain warned that US construction markets would 鈥渃ontinue to post a low level of activity鈥 but said it expected business in other key markets to 鈥渞emain satisfactory鈥.

The group reiterated its objectives for the full year as double-digit growth in operating profit at constant exchange rates and growth in recurring net income of at least 20%.