(Reuters) – Saint-Gobain announced on Thursday a drop in its turnover in the third quarter, the strength of exchange rates, the negative scope effect and low volumes having weighed on the results of the French materials group. construction.

Saint-Gobain reported a turnover of 11.57 billion euros in the third quarter, down 10.5% on an actual basis and compared to the same period last year. Analysts were counting on 11.5 billion euros.

The company also recorded a 5% drop in volumes with a currency effect of -3.9%, in line with expectations.

During a press conference, general manager Benoît Bazin linked the company’s results to a “context of moderate slowdown” in its markets, “with a contrast between a marked drop in new construction and a sector of generally resistant renovation.

Renovations represent about 50% of the company’s total business, Benoît Bazin said, and more than 6% in Europe.

As the housing market bears the brunt of aggressive rate hikes from global central banks, however, Jefferies sees potential for volume growth, market outperformance and margin resilience for Saint-Gobain.

“Global ambitions to reduce carbon emissions should enable Saint-Gobain to outpace market growth at least through 2030,” Jefferies said in a note released ahead of the results.

Analysts at Midcap Partners also said the group’s business “will be supported by Europe’s ambitions to reduce emissions.”

The European Parliament is targeting a 40% reduction in carbon emissions in European Union countries, in areas such as construction and agriculture, by 2030.

Saint-Gobain confirmed its outlook for the rest of the year.

(Report by Gaëlle Sheehan, by Stéphanie Hamel, edited by Kate Entringer)

Copyright © 2023 Thomson Reuters