Saint-Gobain plans only limited acquisitions In 2010

French construction materials group Compagnie de Saint-Gobain SA doesn't intend to spend much money on acquisitions in 2010 to help keep credit agency ratings firm, chief executive Pierre-Andre de Chalendar said Friday [Feb. 26].

Meantime, the company's shares surged 7.9 percentFriday, as markets reacted favorably to better-than-expected operating earnings and a relatively upbeat 2010 outlook.

In an analyst meeting following the company's disclosure a day ago of an 85 percentfall in 2009 net profit that was hurt by weak demand in its markets, Chalendar said Saint-Gobain is targeting a substantial increase in operating profit in 2010, as the global economy and its markets improve, albeit unevenly.

Saint-Gobain's markets remain tough, with contrasting trends from country to country, and despite improving global economic conditions, Chalendar said. But overall he sees cost savings helping earnings and margins recovering significantly, especially in the innovative materials and building distribution sectors, according to a Feb. 26 report in The Wall Street Journal.

Read full article