Compagnie St-Gobain - Re Lapeyre Sales/Earnings

RNS No 8888h
COMPAGNIE DE SAINT-GOBAIN
22 September 1999

LAPEYRE GROUP
FIRST-HALF 1999 CONSOLIDATED EARNINGS

The Board of Directors met on September 13, 1999 and examined the consolidated
financial statements for the period ended June 30, 1999.

                             Consolidated Sales Up 21.6%

Sales by Business             June 30, 1999     June 30, 1998       % change
                           FRF m       m       FRF m       m

France
Lapeyre / GME              2,187      333      2,046      312         6.9
K par K                      303       46        251       38        20.7
SGM / Oxxo / Les Zelles      560       85        510       78         9.8
Total France               3,050      464      2,807      428         8.7

Total International          540       82        146       22         NM

Consolidated Total         3,590      546      2,953      450        21.6

In France, all of the French companies performed well in favorable conditions
and in an expanding business environment.
Outside France, companies recently consolidated in Germany and Poland generally
show a more seasonal variation in business.  Overall market conditions remained
unfavorable in Germany and Belgium, and positive in Poland.  At constant scope
of consolidation, sales rose by 7.1% over the period.

                First-Half 1999 Consolidated Earnings Up 12.7%

in millions of French francs        June 30, 1999  June 30, 1998   % change

Sales                                  3,590          2,953         21.6%
Pre-tax profit on ordinary
 activities                              375            329         13.8%
Current and deferred taxes              (157)          (138)        13.9%
Net profit before minority 
  interests                              214            188         13.9%
Consolidated net profit                  212            188         12.7%

Interim operating profit rose by 14% at comparable scope of consolidated and by
18.4% on a reported basis.  Net profit was up 14.1% at comparable scope of
consolidation and 12.7% on a reported basis.  Compared with previous periods,
interim consolidated sales and profits are now both subject to greater seasonal
variations, which are more favorable in the second half.


Cash flow amounted to FRF 355 million, while dividends distributed totalled an
aggregate FRF 138 million.  Marketing expenditure and capital spending rose
substantially to FRF 218 million, due to the consolidation of the new companies.

Working capital requirement expressed as days of sales was unchanged.  Net debt
totalled FRF 4 million at June 30, following the acquisition of shares in the
Polish companies for FRF 248 million in January.

 
                           Outlook

In France, the business environment will remain favorable in the second half.
Measures to reduce the VAT rate on maintenance expenses should have a positive
effect on business, even if some of these measures will only replace existing
tax deduction programs.

The proposed reduction in property transfer taxes in France should make
relocating easier and thus have a positive effect on the renovation market.

Sales from subsidiaries outside France will be higher in the second half, and
will show an improvement from the year-earlier period.

Overall, growth in sales should be comparable to that reported in the first
half, and consolidated net earnings are expected to rise at least in line with
sales.


Lapeyre - Investor Relations
Patrick Mallet
Tel: [phone]
Fax: [phone]

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