Lapeyre Interim Results

RNS Number:2592R
Compagnie de Saint-Gobain
20 September 2000


            First-Half 2000 Consolidated Sales and Earnings

The Board of Directors met on September 14, 2000 and examined the consolidated
financial statements for the six months ended June 30, 2000.


                        CONSOLIDATED SALES: UP 12.8%
 
SALES BY BUSINESS         June 30, 2000        June 39, 1999         %
 
                         EUR m     FRF m     EUR m      FRF m      Change
                           
                           
B2C Market               453.3    2,973.5    395.1    2,592.0       14.7%
LAPEYRE-GME-K PAR K      436.9    2,865.9    379.7    2,490.8       15.0%
LAPEYRE EUROPE            16.4      107.6     15.4      101.2        6.2%

B2B Market               164.2    1,077.0    152.2      998.4        7.9%
SGM - 0XX0 - LES ZELLES  102.9      675.0     85.3      559.5       20.7%
SOFIPLAS - LAPEYRE 
 DEUTSCHLAND              61.3      402.0     66.9      438.9       -8.4%
 ERG-OKFENS
TOTAL LAPEYRE GROUP      617.5    4,050.5    547.3    3,590.4       12.8%


In France, business was good in a promising market. In the rest of Europe, Group
companies suffered from market conditions that remained unfavorable in Germany
and weakened in Poland. At comparable scope of consolidation, sales were up by
11.3% for the period.

                      FIRST-HALF 2000 CONSOLIDATED EARNINGS

The new French consolidated accounting standards have been applied as from 2000.
Although the change had no material Impact on the accounts, first-half 1999
figures have been restated on the same basis.
                            

                          First-Half 2000         First-Half 1999        %
                        EUR m         FRF m     EUR m       FRF m     Change

Sales                   617.5        4,050.5   547.3      3,590.4     12.8%
Operating income         61.8          405.4    57.9        379.8      6.7%
Consolidated net income  31.3          205.3    32.1        210.6     -2.4%

Operating income of the French companies rose by 17.6% in the first half.
However, higher raw materials prices and underperformance in Germany and Spain
held growth in consolidated operating income to just 6.7%. Net income for the
period was down 2.4% due to non-operating expenses (related primarily to Lapeyre
Espana and Deutschland) and to the amortization of goodwill on Lapeyre
Deutschland.

Cash flow remained strong at EUR 55.7 million or 9% of sales. Working capital
requirement was stable as a percentage of sales. Net debt totalled EUR 7.5
million. Shareholders' equity amounted to EUR 518.4 million.


                                 OUTLOOK


In France, the favorable general economic environment should sustain strong
sales and earnings at all Group companies. The reduced VAT rate on installation
services will be especially beneficial to the B2C business as installable
product backlog is already deep.

In Brazil, a partnership agreement, with a majority interest, has been signed
with Telhanorte, the country's second largest building materials wholesaler.

Overall, growth in sales should be comparable to that reported in the first
half, but operating income will be affected by the sharp decline in operating
income from the German, Polish and Spanish subsidiaries.


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