In the face of a moderate market slowdown, French building-materials company Compagnie de Saint-Gobain has announced that it is raising its yearly operating margin guidance. The company is now targeting a double-digit operating margin for 2023, up from the previous range of 9% to 11%. Additionally, it aims to achieve an operating margin of between 9% and 11% for the second half of this year.
According to Chief Executive Officer Benoit Bazin, Compagnie de Saint-Gobain’s earnings are now generated primarily in North America, Asia, and emerging countries. These regions are experiencing improving trends and a positive growth outlook due to demographics and rapid urbanization.
Despite the overall decline in earnings, the company reported a first-half net profit of €1.45 billion ($1.60 billion), compared to €1.72 billion in the same period last year. Sales also declined by 2.1% to €24.95 billion.
Compagnie de Saint-Gobain attributes the market slowdown to weakness in new construction, while noting that renovation projects continue to show resilience. In response, the company is implementing “proactive commercial and industrial measures” to address these market trends.