COD Compagnie De Saint-gobain

RNS No 0773p
COMPAGNIE DE SAINT-GOBAIN
16th September 1998


During the first half 1998, the Lapeyre network committed expenditure to develop
the new installation services.  In addition, special efforts were made to secure
sustainable price competitiveness, whose positive impact will be felt on volumes
and margins in the second half.  The wholesaling and building trades segment
increased its contribution to consolidated earnings.  This was particularly the
case for OXXO, which returned to profit.

For the above-mentioned reasons, first-half earnings grew more slowly than
sales, despite an improved performance in certain business.  The 15.1% rise in
current and deferred taxes resulted from the fact that the Group benefited from
an exceptional tax credit in the first half 1997.  In all, consolidated net
profit increased 2.2%.  Cash flow amounted to FF 306 million and capital
spending totaled FF 166 million.  The net cash position increased by FF 70
million.

Expansion in Germany

On July 31, 1998, the window and interior door operations of Germany's CHA were
acquired, following final approval of the transaction.

Outlook

Lapeyre does not expect its operations to be adversely affected by the current
downturn in the global business environment.

Improvements noted in the Group's European markets in recent months, and the
actions and investments already undertaken point to a positive future for both
sales and profits in second half 1998 and in 1999.

Growth in profit before tax and exceptionals will probably be equal to sales
growth in the second half of the year.

Lapeyre - Investor Relations
Jean-Francois Corbineau
Tel: +33 (0)1 48 11 74 14
Fax: +33 (0)1 43 52 64 46


                       First-Half 1998 Consolidated results

The Board of Directors met on September 14, 1998, and examined the consolidated
financial statements for the period ended June 30, 1998.

                             Consolidted Sales Up 12.2%

in millions of French frans        First half   First half   % change
                                       1998        1997

Lapeyre and GME                       2,149       1,963        9.5%

SGM - OXXO - Les Zelles                 553         459       20.2%

K par K                                 251         209       20.3%

Consolidated sales                     2,953      2,631       12.2%

All of the Group businesses reported higher sales for the period.  The Lapeyre
network opened three new outlets and successfully introduced its installation
services, while the GME network opened four outlets and enjoyed sustained
growth.  The wholesaling and building trades segment benefited from increased
demand in multi-family housing renovation and new construction.  K par K
maintained its growth momentum.


                              First-Half 1998 Earnings

in millions of French francs        First half  First half   % change
                                       1998       1997

Sales                                 2,953      2,631         12.2%

Profit before tax and exceptionals      329        312          5.4%

Loss on asset disposals                 (1)        (5)        

Current and deferred taxes            (138)       (120)         15.1%

Amortization of goodwill                (3)         (2)       

Income/(loss) from companies accounted 
 for by the equity method                1          (1)

Consolidated net profit                 188        184             2.2%


END

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