Saint-Gobain Profit Falls 14% On Lower Sales, Tax Expenses

(RTTNews) - French building materials provider Compagnie de Saint-Gobain SA (CODGF.PK) Wednesday reported a 14 percent decline in profit for fiscal year 2013, hurt by a near 3 percent drop in sales as well as higher income tax provision.

Looking ahead, Saint-Gobain foresees improvement for its varied markets despite persistence of global economic uncertainty.

The company plans to raise sales prices in 2014 amid a smaller rise in raw material costs, pursue cost-cutting steps, and divest Verallia North America, its glass packaging business in that region.

Saint-Gobain said 2013 was marked by weakness at its innovative materials, building distribution and construction products segment.

The second half of the year saw momentum in some Western European countries and emerging countries, partly offset by unfavorable currency impact. That contrasts with the first half of the year being hit by fewer working days and bad weather conditions.

For fiscal year 2013, Saint-Gobain reported net income of 595 million euros or 1.08 euros per share, compared with 693 million euros or 1.32 euros per share last year. The company said the prior-year results were restated.

Excluding items, recurring net income for 2013 declined to 1.03 billion euros or 1.86 euros per share from 1.05 billion euros or 2.00 euros per share in the prior year.

Sales for the year fell 2.7 percent to 42 billion euros from 43.2 billion euros a year ago.

Among segments, Innovative Materials sales dropped 4.4 percent from the prior year, Building Distribution sales slid 2.4 percent and Construction Products were down 1.6 percent. Weakness was seen across North America, France, Western Europe and emerging markets.

The currency impact was a negative 2.7 percent. Results were also impacted by income tax expense that was up 7.4 percent at 476 million euros.

Meanwhile, for the fourth quarter of 2013, Saint-Gobain said sales slid 2 percent year-over-year to 10.45 billion euros.

Saint-Gobain declared a dividend of 1.24 euros per share, 50 percent payable in cash and the remainder in cash or in shares, at shareholders' discretion.

In Paris, the stock closed Wednesday at 41.22 euros, up 0.41 euros or 1.00%, on a volume of about 2 million shares.