Compagnie St-Gobain - Subsids 9 Months Sales Rprt

RNS Number:2314A
Compagnie de Saint-Gobain
3 November 1999

                            Consolidated Sales
                       up 19.4% at September 30, 1999

Consolidated sales of LAPEYRE Group (a Saint-Gobain Group's subsidiary)
amounted to FF 5,591.4 million (EUR 852.4 million) at September 30, 1999,
an increase of 19.4% compared with the first nine months of 1998.  On a
comparable structure basis, sales were up 7.6%.

                        Consolidated sales up 19.4%

      Sales by        Sept. 30, l999   Sept. 30, 1998         %
      business          FF m   EUR m    FFm    EUR m       Change

France                 3,416    521   3,219    491           6.1
Lapeyre GME              440     67     359     55          22.6
K par K                  805    123     716    109          12.4
SGM 0xxo Les Zelles

Total France           4,661    711   4,294    655           8.6
Total International      930    142     390     59            NS
Total Group  Lapeyre   5,591    852   4,684    714          19.4


In the third quarter, sales gained 15.8% on a real structure basis
compared with the year-earlier period, and 8.4% on a comparable structure
basis.

In  France, on September 15, 1999, the reduction to 5.5 % of the VAT rate
applied to maintenance and improvement spending, led to a  wait-and-see
attitude on the part of consumers, resulting in slower growth in sales.
However this measure should support growth in Group activities related to
the  renovation section (LAPEYRE and K par K installation services)  and
boost trade sales by the LAPEYRE and GME network. The positive order
intake is encouraging for the year 2000.

Sales for the wholesaling and building trade subsidiaries are highly increasing,
thanks notably to firm demand in the newbuilding market.

Abroad, the German subsidiaries' sales ware substantially lower than
forecast,  reflecting the persistent recession in the country's
construction market and pricing pressure caused by production overcapacity.  The
German subsidiaries' 1999 earnings will therefore be significantly lower than
initially forecast, but the necessary measures have been taken to ensure a
substantial improvement in 2000. The outlook for the European retailing
subsidiaries, on the other hand, is starting to improve, and the Polish
subsidiaries are performing very well,  with results above budget.

Overall, the Group should achieve full-year sales growth of around 18%,
and an increase in net profit of around 10%.

LAPEYRE - Investor Relations 
Patrick Mallett 
Phone: [phone]
Fax:   [phone]

          

END
MSCBRBBBIGGCCCX