"Saint-Gobain's ambition: worldwide leadership in construction markets, with innovative solutions to meet the fundamental global challenges of growth, energy and the environment."
Pierre-André de Chalendar, Saint-Gobain Chief Executive Officer

A BALANCED GROWTH STRATEGY

The Group has in recent years implemented the same strategy for steady and profitable growth to:
- develop genuine leadership in all if its businesses
- enhance its technological and sales capacities
- reduce its exposure to cyclical changes and market fluctuations
- increase profitability and free cash flow.

The Group intends to focus its strategy on:

- prioritizing development of construction and housing related businesses, in particular through bolt-on acquisitions in Building Distribution and Construction Products sectors;

- pushing ahead with R&D and innovation initiatives, particularly in High-Performance Materials and Flat Glass sectors;

- stepping up expansion efforts in emerging countries for all businesses.

More information
Saint-Gobain's strategy (pdf 1,300 Ko)

 

2008 OUTLOOK AND TARGETS

In 2008, the Group will have to contend with a more difficult and far more uncertain macro-economic climate than in 2007, with a possible recession for the US economy and growth in housing starts across Europe losing momentum due chiefly to stricter lending criteria. However, Saint-Gobain is well positioned to face these challenging business conditions:


  • a strong position on the European building renovation market,
  • global leadership on markets related to energy efficiency in buildings, which account for almost 30% of Group sales,
  • significant contributions from Asia and emerging countries to Group operating income (around 20%, i.e. double the North American contribution in 2007),
  • the positive impact on the Group’s results of further acquisitions,
  • a solid financial structure and high levels of free cash flow.

In view of the above, for 2008 the Group is targeting:

  • modest growth in operating income at constant exchange rates (average exchange rates for 2007) and recurring net income*,
  • a solid financial structure and continuing high levels of free cash flow.

*excluding capital gains, asset write-downs and the €694 million provision for Flat Glass fines (European Commission)

- Press release, January 24, 2008 -

The Group is confident in its ability to adapt and withstand more challenging economic conditions, and therefore confirms its objectives for 2008:

  • modest growth in operating income at constant exchange rates (average exchange rates for 2007) and recurring net income*,
  • a solid financial structure and continuing high levels of free cash flow.

* excluding capital gains, asset write-downs, and the Flat Glass fines (European Commission)

- Press release, April  22, 2008 -